Karachi's Timber Market in the old city is the centre of the wood trade, where importers, sawmills and dealers supply timber to furniture makers, builders and boat yards. Our clients here are timber importers, sawmill owners and wholesale dealers.
Timber Importers
Much of the wood sold in Karachi is imported. Importers pay customs duty, sales tax and advance income tax at the import stage, and the advance income tax is usually adjustable in their returns. Goods declarations and invoices should be kept with the year's records.
Sawmills and Processing
Sawmills cut and season timber for dealers and furniture makers. They incur electricity, labour and machinery costs and often need sales tax registration as manufacturers. Wastage from cutting should be recorded so that stock figures make sense.
Wholesale Dealers
Dealers buy from importers and sawmills and sell to carpenters, builders and contractors, often on credit. Stock is measured in cubic feet, and keeping records by volume and type helps calculate profit and closing stock.
Selling to Contractors
Builders and government contractors buying timber may deduct tax on payments. Dealers should collect certificates and claim them.
| Client | Key records |
|---|---|
| Importer | Goods declarations, import tax receipts |
| Sawmill | Electricity, labour, wastage records |
| Dealer | Stock by volume, credit sales register |
Getting Started
Importers and dealers should prepare goods declarations, purchase and sales invoices, a stock statement by volume and bank statements. Sawmills should add electricity bills and wage records. We use these to prepare the return and, where registered, the monthly sales tax returns.
Dealers selling on long credit should also keep a receivables list at 30 June.
Part of our Karachi tax consultant guide. Nearby: Bahadurabad, Baldia Town, Bath Island.
Frequently Asked Questions
Is advance tax paid on timber imports adjustable?
Advance income tax collected at import is generally adjustable against the importer's final liability.
Does a sawmill need sales tax registration?
Sawmills processing timber are generally treated as manufacturers for sales tax purposes, subject to exceptions.
How should timber stock be recorded?
By volume and type, with purchases and sales, so profit and closing stock can be calculated.
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