Bund Road, running along the Ravi embankment on Lahore's western side, carries heavy traffic of construction materials, and dealers along it and nearby roads sell cement, steel bars, bricks and other building materials to contractors and homeowners. These are high-value, low-margin goods, supplied by large manufacturers who collect tax at source.
Thin margins on big tickets
A dealer might sell several crores of cement and steel in a year at a margin of a few percent. Accurate purchase records are what show the real margin; without them, profit looks implausibly high or low.
Tax collected by manufacturers
| Product | Upstream points |
|---|---|
| Cement | Sales tax and federal excise at manufacture; manufacturers may collect advance income tax from dealers |
| Steel bars | Special sales tax arrangements in the steel sector; advance tax from dealers possible |
| Bricks | Kilns usually small and outside formal sales tax |
Advance income tax collected from you by manufacturers appears on their invoices and is a credit in your return; for some categories it can be treated as minimum tax.
Sales tax for dealers
Dealers in cement and steel are typically within sales tax, with registration expected above thresholds. Many manufacturers only supply registered dealers. Bricks from kilns usually arrive without sales tax invoices. We check your position.
Contractor credit
Contractors buy on account and pay when they get paid. Keep a ledger per contractor; receivables at 30 June are assets. Bad debts written off are losses if documented.
Delivery
Own trucks and loaders: goods-vehicle tax with the token, diesel and drivers as costs. Hired transport: freight bills.
Stock
Cement bags, steel by weight and diameter, bricks by thousand. Count at cost around 30 June. Cement has a shelf life; hardened bags are a loss.
Steel prices swing weekly. Record purchase rate and sale rate per ton on each transaction; it's the only way to see your real margin.
Delivery to site and unloading
Dealers usually charge for delivery and unloading. Freight charged to customers is your income; freight paid to transporters is your cost. If you use your own trucks, the goods-vehicle tax collected with the token is a credit, and diesel and drivers are costs. Separate freight from material in your bills so your margins on each are visible.
Bund Road — questions we get asked
Not sure what you need to file?
Message us first. A short WhatsApp chat usually settles whether you need a return, a wealth statement, or nothing at all.