Manga Mandi, on Multan Road on Lahore District's south-western edge, sits among wheat-growing areas and industrial units, including flour mills and smaller chakkis grinding wheat for local markets. Flour milling is a high-volume, low-margin business heavily influenced by government wheat policy, quotas and price controls.
Wheat purchases
| Source | Records |
|---|---|
| Government wheat release (quota) | Release orders, payments to food department |
| Open market / farmers / arhtis | Purchase slips, payments |
| Own stocks from previous season | Stock register |
Government wheat procurement and release policies change year to year. Keep every release order and payment.
Products
Flour (atta), maida, suji, and by-products like bran (chokar). By-products are sold to feed mills and livestock owners — they're income too.
Thin margins and minimum tax
Flour mills often operate on small margins, with prices influenced by government notifications. Minimum-tax provisions on turnover, with sector-specific treatment at times, can matter.
Sales tax
Wheat flour has generally been exempt from sales tax, though branded and packaged flour, maida and other products may have different treatment over time. We check your product range.
Chakkis
Small chakkis grinding customers' wheat for a fee earn service income. Those buying wheat and selling atta earn trading/manufacturing income.
Electricity
Milling is electricity-intensive; industrial bills carry sales tax and advance income tax. Electricity consumption also indicates production levels.
Yield records
Wheat to flour and bran yields are well known in the trade. A milling log showing wheat ground and products obtained supports your figures.
Food departments, sales tax authorities and FBR all look at flour mills. One consistent set of records — wheat in, products out, electricity used — serves all three.
Flour sold to bakeries and retailers
Mills sell flour to bakeries, retailers and distributors, often on account. Keep a ledger per customer; amounts owed at 30 June are receivables. Larger buyers may pay by bank and withhold tax — collect their certificates. Price notifications by the government can affect selling prices; note them on the dates they apply, so your margins make sense.
Storage and wheat losses
Wheat stored for months can lose weight and quality. Record storage losses, fumigation and godown costs. They explain why wheat bought doesn't equal flour sold.
Family-run mills
Flour mills are often owned by a family through an AOP or company. Payments to family members — salaries, profit shares — must match the structure, and each member's return should reflect what they actually received.
Branded flour
Mills that pack branded flour for retail take on packaging costs and, potentially, different sales tax treatment. Plan the switch with your adviser.
Manga Mandi — 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.