Pakistan compliance
What the software prepares, and what stays yours
NNRK Cloud computes tax on your entries and prepares the figures behind a return. It does not file anything, and it does not make anyone compliant. Filing, and legal responsibility for what is filed, remain with you and your tax consultant. We would rather say that on the first screen than in a footnote.
What it computes
Tax comes off the entries, not off a summary
Every figure below is derived from the same ledger entries the rest of the system reads. Nothing is re-keyed into a tax module at the end of a month, which is where the mismatches usually start.
FBR
Federal sales tax
Sales tax is computed on the entries themselves as invoices post, and the registers behind a return are built from those entries rather than re-keyed from a summary.
PRA
Provincial services tax
Services are taxed provincially in Pakistan and the rules are not the same in each province. Each branch keeps its own accounts, so services tax is computed against the branch the service was provided by.
WHT
Withholding on payments
Amounts withheld on supplier payments and on salaries are computed and posted as liabilities when the payment is made, so what is owed is on the ledger rather than in a spreadsheet.
AUDIT
Records and numbering
Documents are numbered in sequence, entries are reversed rather than deleted, and who posted what and when stays on the record, which is what an audit asks for first.
Which of these applies to you depends on your registration, your province and what you sell. Bring your last return to a demo and we will show you where each line on it comes from.
The boundary
What we do, and what your accountant still does
The software
- Computes tax on each transaction as it posts
- Keeps the registers and the audit trail behind those figures
- Prepares the numbers a return is built from
- Shows where any figure came from, down to the entry
You and your consultant
- Decide the treatment where the law leaves a judgement
- Check the figures before anything is submitted
- File the return, and hold the legal responsibility for it
- Deal with notices, audits and assessments
This is the boundary every software vendor has, whether or not they publish it. We publish it because an accountant is going to ask, and the answer is better read before the meeting than during it.
Bring your last return
The quickest way to test this
Bring a return you have already filed and the entries behind it. We will show you the same figures coming off the ledger, and where they would have come from if the software had been running that month.