Pakistan is a land of many laws. All businesses will have to comply with various Acts, Laws, Rules and Regulations in a normal course of business such as Income Tax Act, Income Tax Rules, Companies Act 2017, Service Tax Act, Central Excise, Limited liability Partnership Regulations, Partnership Act, Sales Tax, EOBI & SESSI etc. etc.
Beginning with the Institute of Chartered Accountants of Pakistan (ICAP): ICAP is an autonomous body consisting of accounting professionals. ICAP issues accounting standards providing guidelines for disclosures of financial information. It provides that the financial statements shall give a true and fair view of the state of affairs of the company or companies. They shall comply with the International accounting standards. It is further provided that items contained in such financial statements shall be in accordance with the accounting standards.
For a small business owner who is carrying out day to day business operations, it is difficult to keep track. He will have to refer different books for various laws, which makes compliance more complicated. Hence, there is a need to have a consultant who will assist businesses. Compliance requires Income tax preparation, Company law compliance, Audits, Tax Audit, Certification, e.filing of tax returns and its preparation, Central Excise Duty, Service tax, Sales Tax, Final Accounts preparation in addition to Book Keeping Services
Compliance also includes payment of taxes within stipulated time, preparation of tax challan/PSID, and issuance . Reporting such payments by documents called "Returns" to the authorities before due dates. Collecting, Issuing and submitting various certificates and documents.
Since 2013 FBR has introduced concept of "Active Tax Payer", income tax withholding tax rates increases tremendously in case any person or business is non-filer, therefore there are benefits in become income tax filers.
Similarly Income Ordinance has prescribed certain persons who are liable to file income tax returns. Therefore every person engage in business in Pakistan must have basic knowledge on taxation laws in Pakistan.