Taxation

~~with focus on tax education~~

Delivery of goods outside Pakistan‏ - Accounting and Tax Treatment

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Tax Treatment:
Section 101(2) states that "Business income of a resident person shall be Pakistan-source income to the extent to which the income is derived from any business carried on in Pakistan". As the business in connected in Pakistan irrespective whereever the delivery of goods is, all relevant provision of Income Tax would be applicable over this transaction including deducting of witholding tax while making payment with applicable rate.
Accounting Treatment:
First you have to record its normal purchase at cost in Pak Rupee and then you can book sale at the time you deliver the goods to the party.

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posted @ 2:55 PM,

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