4 basic steps for Bookkeeping to match trail balance

4 basic step for Bookkeeping

Bookkeeping has its 4 basic steps:

1) If any transaction entering In the accounting cycle must observe its supporting Documents
a) Check relation of entry
b) Check description
c) Check billing/ documents date and match with the Accounting period
d) Check amount in words and digit
e) Check inspection report
f) Check inventory receipts from Company QC department
g) Check quotation as per company law
h) Check concern department requirements and made
i) Check billing calculations
j) Check company name on bill or documents

2) Allocation of debit and credit entry

a) Check allocation as per the chart of account
b) Check costing station
c) Sub allocation
d) Check allocation as per profit and loss account , balance sheet , manufacturing account, trading account

3) Posting to concern Ledger Accounts

a) Check the accounts as per index
b) Check the folio no.
c) Insert in proper place in ledger to follow date
d) Write figures in amount colnm start from right hand side
e) Ensure you have written folio no on both side Cash book vs ledger
f) Make sure about amount written in ledger should be same with cash book

4) Posting from other sources as bellow

a) Check posting from Purchase Book
b) Check posting from Sales book
c) Check posting from general Journal
d) Check posting from others direct or indirect books of accounts
e) Check all above source entries have been posted with equal debit and credit effects

Continue in next post .

Get Company Registration with secp Pakistan and FBR Pakistan through IRIS

Get Company Registration with secp Pakistan and FBR Pakistan through IRIS

You can apply for registration of Private Limited Company in Karachi Pakistan with SECP Pakistan or LLC  company In Karachi Pakistan with in week time without facing any income tax and sales registration issues. For this you required to provide following documents and information.

If You are Pakistani

if you are Pakistani then you need to provide name availability for registration with SECP Pakistan (Security Exchange Commission of Pakistan.)

Article and Memorandum of association 8 copies

National Identity card

Registered Office address

Registered Phone number and email address

All other form required by SECP Karachi Pakistan to be Provided

expense depends on Paid up Capital Fee

Consultant fee depends on company by company but our charges for company registration is very reasonable and low as compare others company practicing the same.

we also provide after registration services for company likewise

Bookkeeping, Tax consultancy

Internal Audit and cost management and accountancy

 

submit your Income Tax Return in Due date of FBR

Submit Your Income tax return in due date of FBR Pakistan By IRIS.

We are Professional Accountants and Tax expert In Karachi Pakistan our services include Income Tax return Filing, Sales Tax Filing, Withholding Tax filing, Corporate Tax Filing, Tax advisory services, Tax exemptions and Tax claim services, Super Tax Calculation, Salary Tax calculation and Filing, company Tax calculation and filing, appearing in case hearing, applying  for appeal in any kind of dispute with FBR, Tax Planning and management  annual supervision, Income tax registration services, Sales tax registration services, Services sales tax registration, we provide all kind of tax consultancy to all type of trade Associations, NGOs, Societies, manufacturer, traders, Exporter, Importer, costume duty and Property tax etc

Amnesty scheme of Government Pakistan

We deeply discuss on Amnesty scheme of Government Pakistan  55,225 crowde have filed returns showing  their Rs577 billion Assets and wealth  of outside Pakistan  assets and Rs1,192bn inside Pakistan  assets under the tax amnesty scheme,

As per our observation and FBR report  55,225 people have submit returns showing  their Rs577 billion worth of foreign assets and Rs1,192bn domestic assets under the tax amnesty scheme, new data released by the finance division on Wednesday shows. The declarants have paid around Rs97bn in taxes thus far with more in the pipeline.

The break down showed that the government received a tax amount of Rs36bn on whitening of foreign assets and Rs61bn on domestic assets. In addition, $40 million has been repatriated. This response to the amnesty schemes has been unprecedented.

The last date for the tax amnesty scheme has already been extended until July 31.

An official statement said the amnesty scheme for foreign assets applied to both liquid and immovable assets such as bank accounts, shares and mortgaged properties. Tax rates range from two per cent to 5pc, depending on the type of asset. Special tax rate of 2pc is applicable to liquid assets which are repatriated into Pakistan.

Govt receives tax amount of Rs36bn on whitening of foreign assets and Rs61bn on domestic assets

The amnesty scheme for domestic assets covers all types of assets and income, with tax rates of 2pc and 5pc.

For payment of tax on foreign assets, the State Bank of Pakistan has devised a procedure, whereby tax in US dollar is deposited into SBP’s account through wire transfer.

The government has issued Government of Pakistan’s US Dollar Denominated Amnesty Rules, 2018, whereby the SBP has been authorised to issue these bonds having a maturity period of five years and annual profit of 3pc to be paid semi-annually.

According to the rules, the citizens of Pakistan can invest in these bonds out of remittances declared under the foreign amnesty or through encashment of foreign currency accounts held in Pakistan.

Pakistan has also become a signatory to the OECD Multilateral Convention which will provide access to information about offshore financial accounts of Pakistani residents from September this year. This will enhance the capacity of the Federal Board of Revenue due to access to offshore financial accounts of Pakistani residents held in the signatory countries.

Necessary amendments have also been made to the Protection of Economic Reform Act, 1992, to regulate foreign exchange movements and bring them in line with the Income Tax Ordinance, 2001.

Moreover, amendments have been made to the Income Tax Ordinance, 2001, whereby the FBR may inquire about the source of foreign remittance above Rs10m and limitation of five years to probe foreign assets and income has been removed.

Published in Dawn, July 12th, 2018

 

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If you want to Generate Auto back link on your website and boost / increase traffic on your site please click on the link mentioned below Auto back link generator to bioost your website traffic

It Has Been observed that if you are engage with the business of accountancy and tax advisory then must build link with the tax practitioner associations, tax consultant association body, corporate tax consultant and association word wide who are publishing and sharing accountancy data and policies and rules about accountancy and managerial accountancy we should follow and engage with the activities of all kind of accounting and bookkeeping activities which not only help us with new ideas in Karachi Pakistan.

Six ways to save Your tax in Pakistan

These taxes are pretty high for income tax non-filers and you often end up paying huge amounts for everyday tasks, services and products. The government incentive here is that you can start filing returns and pay less withholding taxes. These can be reimbursed at the end of the year, saving you thousands of rupees each month.

So here’s a list of activities where you will save on withholding taxes if you file your tax returns. The list mentions the activity/business and the applicable tax on both, filers and non-filers:

Personal Activities
Even common tasks which do not relate to any company or organization are now charged taxes and non-filers are especially asked to pay WHT even when there’s no similar tax on filers.

Here’s the breakdown:

On Winning a Prize Bond, Quiz Bond or Crossword Puzzle: Filer – 15%, Non-filer – 20%
Transfer of property: Filer – 1%; Non-filer – 2%
Advance Tax on purchase of property:
Immoveable property worth upto Rs. 4 million: No tax
Immoveable property worth over Rs. 4 million Filer – 2%; Non-filer 4%
Tax on General Insurance Premium and Life Insurance Premium:
General Insurance Premium: Non-filers – 4%
Life Insurance Premium (Over 0.2 million annual): Non-filers 1%
Banking Transactions
Every bank transaction you perform is also taxed based on the amount you send or cash out. The tax amounts are listed below:

On cash withdrawal (Over Rs. 50,000): Filer – 0.3%, Non-filer – 0.6%
On Demand Draft, Payment Order, CDR, STDR, RTC or similar instrument (Over 25,000): Filer – 0.3%, Non-filer – 0.6%
On Online money transfer or other electronic mail (Over 25,000): Filer – 0.3%, Non-filer – 0.6%
Advance tax on sale of demand draft, pay order etc.: Filer – 0%; Non-filer 0.6%
All bank transactions: Filer – 0%; Non-filer 0.6%
Motor Vehicles
Most activities related to motor vehicles also include withholding tax (WHT) based on a person’s status as a filer or non-filer, where the latter are taxed higher:

Registration of a vehicle:
Upto 850cc: Filer – Rs. 10,000; Non-Filer – Rs. 10,000
851cc to 1000cc: Filer – Rs. 20,000; Non-Filer – Rs. 25,000
1001cc to 1300cc: Filer – Rs. 30,000; Non-Filer – Rs. 40,000
1301cc to 1600cc: Filer – Rs. 50,000; Non-Filer – Rs. 100,000
1601cc to 1800cc: Filer – Rs. 75,000; Non-Filer – Rs. 150,000
1801cc to 2000cc: Filer – Rs. 100,000; Non-Filer – Rs. 200,000
2001cc to 2500cc: Filer – Rs. 150,000; Non-Filer – Rs. 300,000
2501cc to 3000cc: Filer – Rs. 200,000; Non-Filer – Rs. 400,000
Above 3000cc: Filer – Rs. 250,000; Non-Filer – Rs. 450,000
Transfer of registration or ownership of a vehicle:
Upto 850cc: Filer – Rs. 0; Non-Filer – Rs. 5,000
851cc to 1000cc: Filer – Rs. 5,000; Non-Filer – Rs. 15,000
1001cc to 1300cc: Filer – Rs. 7,500; Non-Filer – Rs. 25,000
1301cc to 1600cc: Filer – Rs. 12,500; Non-Filer – Rs. 65,000
1601cc to 1800cc: Filer – Rs. 18,750; Non-Filer – Rs. 100,000
1801cc to 2000cc: Filer – Rs. 25,000; Non-Filer – Rs. 135,000
2001cc to 2500cc: Filer – Rs. 37,500; Non-Filer – Rs. 200,000
2501cc to 3000cc: Filer – Rs. 50,000; Non-Filer – Rs. 270,000
Above 3000cc: Filer – Rs. 62,500; Non-Filer – Rs. 300,000
At the time of sale of new vehicle (from manufacturer):
Upto 850cc: Filer – Rs. 10,000; Non-Filer – Rs. 10,000
851cc to 1000cc: Filer – Rs. 20,000; Non-Filer – Rs. 25,000
1001cc to 1300cc: Filer – Rs. 30,000; Non-Filer – Rs. 40,000
1301cc to 1600cc: Filer – Rs. 50,000; Non-Filer – Rs. 100,000
1601cc to 1800cc: Filer – Rs. 75,000; Non-Filer – Rs. 150,000
1801cc to 2000cc: Filer – Rs. 100,000; Non-Filer – Rs. 200,000
2001cc to 2500cc: Filer – Rs. 150,000; Non-Filer – Rs. 300,000
2501cc to 3000cc: Filer – Rs. 200,000; Non-Filer – Rs. 400,000
Above 3000cc: Filer – Rs. 250,000; Non-Filer – Rs. 450,000
Private motor vehicle tax:
Upto 1000cc: Filer – Rs. 800; Non-Filer – Rs. 1,200
1001cc to 1199cc: Filer – Rs. 1,500; Non-Filer – Rs. 4,000
1200cc to 1299cc: Filer – Rs. 1,750; Non-Filer – Rs. 5,000
1300cc to 1499cc: Filer – Rs. 2,500; Non-Filer – Rs. 7,500
1500cc to 1599cc: Filer – Rs. 3,750; Non-Filer – Rs. 12,000
1600cc to 1999cc: Filer – Rs. 4,500; Non-Filer – Rs. 15,000
2000cc & above: Filer – Rs. 10,000; Non-Filer – Rs. 30,000
Annual tax for transport service providers:
Goods transport capacity: Filer Rs. 2.5/kg; Non-filer: Rs. 4/kg
Vehicle with laden weight capcity of over 8,120kg: Rs. 1,200
Passenger transport service providers:
Capacity between 4 to 9 passengers: Filer – Rs. 50 per seat, Non-filer Rs. 100 per seat
Capacity between 10 to 19 passengers: Filer – Rs. 100 per seat, Non-filer Rs. 200 per seat
Capacity of 20 passengers or more: Filer – Rs. 300 per seat, Non-filer Rs. 500 per seat
Profits
Income on dividend/payment of dividend: Filer – 12.5%, Non-filer – 20%
Income on Sukuk: Filer – 10% to 15%, Non-filer – 17.5%
Profit on National Savings Scheme or Post Office Savings: Filer – 10%, Non-filer – 17.5% (Over Rs. 5 lacs)
Profit on debt paid by banking company: Filer – 10%, Non-filer – 17.5% (Over Rs. 5 lacs)
Profit on bonds , certificates, debentures, securities: Filer – 10%, Non-filer – 17.5% (Over Rs. 5 lacs)
On extraction of minerals from mines: Filer – 0%; Non-filer – 5%
On brokerage or commission:
Advertising agents: Filer – 10%, Non-filer 15%
Life Insurance Agents (Commission under Rs. 5 lacs): Filer – 8%, Non-filer 16%
People not covered in the above two points: Filer – 12%, Non-filer 15%
Payments to Non-Residents
When any Pakistani makes a payment to non-residents or non-resident’s company through a contract, the following difference in taxes applies to filer and non-filers:

On construction related contracts: Filer – 7%, Non-filer – 12%
On other services and TV advertisements: : Filer – 7%, Non-filer – 12%
Sale of goods (Company): : Filer – 4%, Non-filer – 6%
Sale of goods (Other than company): Filer – 4.5%, Non-filer – 6.5%
On Providing Services (Company): Filer – 8%, Non-filer – 12%
On Providing Services (Other than company): Filer – 10%, Non-filer – 15%
Execution of any other contract: Filer – 7%, Non-filer – 12%
Local Payments
When any business person makes a payment to local residents or companies, the following difference in taxes applies to filer and non-filers:

On supply by distributors: Filer – 3%, Non-filer 3.5%
On sale of other goods (Company): Filer – 4%, Non-filer – 6%
On sale of other goods (Other than company): Filer – 4.5%, Non-filer – 6.5%
Payments to Electronic or Print Media for ads: Filer – 1.5%, Non-filer – 12 to 15%
On transport services (Company): Filer – 8%, Non-filer – 12%
On transport services (Other than company): Filer – 10%, Non-filer – 15%
Execution of any other contract (Company): Filer – 7%, Non-filer – 10%
Execution of any other contract ( Other than company): Filer – 7.5%, Non-filer – 10.5%
On selling petroleum products to a petrol pump: Filer – 12%, Non-filer – 15%6 ways to save your tax in Pakistan

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