Hub returns cover factory profit, contractor income, salaries and industrial rent. This page explains what each should contain.
Factory Owners
A manufacturing unit's return shows sales, raw materials, power, gas, wages, repairs and depreciation of plant, with stock at 30 June. The figures are reconciled with monthly sales tax returns and withholding statements before filing, because FBR's systems compare them.
Contractors
Contractors list receipts from each factory, the income tax withheld and their costs. BRA sales tax charged on services is not income, as it is collected for the province.
Employees
Salary and the tax withheld are copied from the salary certificate. Workers who changed jobs during the year combine both certificates.
Industrial Rent
Owners of sheds and plots declare rent received and claim the tax withheld by tenant companies.
Transporters
Freight income less fuel, tyres, repairs, drivers' wages and depreciation, with vehicle token tax credited.
Wealth Statement
Plots, sheds, vehicles, machinery, balances and loans are listed.
Karachi Residents
People living in Karachi but earning in Hub file one federal return covering all their Pakistani income.
Scrap Dealers
Dealers buying scrap from factories show purchases, sales to recyclers in Karachi and the tax collected at purchase, which is claimed.
Workers Who Live in Karachi
A worker living in Orangi or Baldia who works in Hub files one return with his Karachi address; the Hub factory's salary certificate is used as usual.
Also see tax consultant in Hub and NTN registration in Hub.
Frequently Asked Questions
Is BRA tax collected from customers income?
No, it is collected for the province and paid over.
Do I file separately for Hub and Karachi income?
No, one federal return covers both.
Should factory accounts match sales tax returns?
Yes, FBR compares them.