Tyre and battery shops line the main roads of Lahore's northern neighbourhoods, serving cars, motorcycles, rickshaws and trucks. They sell goods with a service attached — fitting, balancing, charging — and run an exchange trade in old batteries. Most stock is supplied by distributors of local and imported brands.
Goods and services
| Income | Type |
|---|---|
| New tyres and batteries | Sale of goods |
| Fitting, balancing, alignment | Service |
| Battery charging and testing | Service |
| Puncture repair | Service |
| Old batteries bought and sold to recyclers | Trading |
Keep goods and services apart in your daily record; they're taxed differently.
Old-battery exchange
Customers trade in old batteries for a discount. The old battery has value — recyclers buy them by weight. Record:
- The discount given (reduces the new battery's sale price).
- Old batteries collected (stock, at the discount value).
- Sales to recyclers (income).
Stock and sourcing
Tyres and batteries come from distributors of local manufacturers and from importers. Buy with invoices. Imported tyres should trace to duty-paid imports; untraceable stock is a seizure risk and leaves cost unsupported.
Sales tax
Tyres and batteries are generally taxable goods. Shops above thresholds need to register. Distributors may collect advance income tax from you on supplies — a credit in your return.
Warranty claims
Battery and tyre warranties lead to replacements. A claim accepted by the distributor is a stock replacement, not a sale. Record claims so stock counts match.
Equipment
Tyre changers, balancing machines, alignment equipment, chargers and compressors are capital assets.
Count stock by size and brand at 30 June. Tyres in particular come in so many sizes that a vague stock figure is meaningless.
Supplying transport fleets
Tyre and battery shops that supply rickshaw owners, transporters and delivery fleets on account have well-documented sales. Fleet customers may pay monthly by bank and, if they're withholding agents, deduct tax. Keep a ledger per fleet and collect certificates.
Solar and UPS batteries
Many battery shops now sell batteries for solar and UPS systems, along with inverters. These are sales of goods with their own margins and warranty terms; keep them as a separate line from vehicle batteries.
Scrap batteries and environment rules
Old lead-acid batteries are hazardous waste. Sell them only to licensed recyclers and keep their receipts — for environmental compliance and as evidence of the income.
Shadbagh East — 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.