Green Town, next to Township, is home to many small manufacturing units, among them furniture workshops making beds, sofas, wardrobes and kitchen cabinets to order. These businesses buy wood and materials, employ skilled karigars, take advances from customers and deliver weeks later. They are small manufacturers in tax terms — not just shops.
Made-to-order business
| Stage | Record |
|---|---|
| Order and advance | Order book with design, price, advance |
| Materials bought | Wood, board, foam, fabric, hardware — with bills |
| Karigars' work | Piece-rate or daily wages register |
| Delivery and balance | Completes the sale |
Advances for undelivered orders at 30 June are customer deposits, not income yet.
Wood and materials stock
Furniture makers hold stocks of timber, boards and hardware. Stock at 30 June — including part-finished pieces — is an asset at cost. Without a year-end count, the business's profit is guesswork.
Karigars and labour
Carpenters, polishers and upholsterers are usually paid by the piece or by the day. A weekly register showing names and amounts paid is the evidence for your biggest cost after materials.
Sales tax
Furniture is goods. Small manufacturers below certain thresholds may not be required to register for sales tax; larger units and those supplying companies, hotels or developers often are, and corporate buyers usually ask for a sales tax number. Cottage-industry exemptions have existed for very small units, subject to conditions. We check where your workshop falls.
Supplying businesses and developers
Workshops making furniture for offices, hotels, schools or housing developers deal with buyers who withhold tax, require invoices and pay by bank. These orders are well documented — keep them in the same books as household orders.
Machines and premises
Saws, planers, routers and spray booths are capital assets. Workshop rent and electricity (often a commercial or industrial connection with advance tax on the bill) are business costs.
A showroom selling finished furniture and a workshop making it are two parts of one business if you own both. Transfers from workshop to showroom aren't sales; only sales to customers are.
Imported fittings and hardware
Many workshops use imported hinges, slides, handles and fabrics. Buy them from registered importers or distributors with invoices — those invoices are your cost and show the goods were legitimately imported. If you import directly, the customs documents and advance tax at import become part of your records. See our small importers page.
Warranties and repairs
Furniture makers often repair or replace pieces under informal warranties. The cost of free repairs is a business cost; record them so a returned sofa doesn't look like lost stock.
Family members in the workshop
Sons and nephews often work in the family workshop. If they're paid regularly, record it as wages; if they share the profit as partners, an AOP may describe the business more accurately.
Green Town — questions we get asked
Send your documents, get a fixed quote
WhatsApp a photo of your CNIC and whatever paperwork you have. We reply with the exact fee before any work starts.