ALLAMA IQBAL OPEN UNIVERSITY

(Department of Business Administration)

Assignment # 2

Roll # AH-525637

Cell # 0224884568 Submitted by: MUHAMMAD IRFAN

All praises to Almighty Allah, the most Gracious, the most Beneficent and the most Merciful, who enabled me to complete this assignment.

I feel great pleasure in expressing my since gratitude to my teacher, for his guidance and support for providing me an opportunity to complete a productive research study of my topic

This assignment is a research-oriented activity, which represents both the theoretical and practical implication of the topic. In the first section of this assignment, I explain the theoretical aspect of the topic and all major parts has been explained which are involved in the method of collecting primary data for research in business in business research. For empirical study, I select WAQT NEWS TV. and compare their ways of the method of collecting primary data for research in business instruments.

INTRODUCTION OF SALES TAX

Registration means the registration of a person under the Sales Tax Act, 1990. Under this act, registration will be required for such persons and be regulated in such manner and subject to rules as the FBR may specify, by notificationSales Tax was a provincial subject at the time of partition. It was being administered in the provinces of Punjab & Sindh as provincial levy. Sales tax was declared a federal subject in 1948 through the enactment of General Sales Tax Act, 1948 and in 1952, this levy was transferred permanently to the Central Government. Sales tax was levied at the standard rate of 6 pies per rupee at every stage whenever a sale was effected. The trading community protested against this system, and this resulted in the enactment of Sales Tax Act 1951In the late eighties the government decided to replace Sales Tax with the Value Added Tax in the country as a part of its structural adjustment program which was undertaken to correct anomalies & distortions both in our tax & non-tax regimes. Accordingly new enactment titled Sales Tax Act 1990 replaced Sales Tax Act 1951 with effect from 1-11-1990.

Liability Of Sales Tax :

Following sectors are required to get registration for sales tax and charge sales tax on their supplies/ services:

1-Manufacturing

2-Import

3- Services

4-Distribution, Wholesale & Retail stage

Types of Registration :

There are two types of registration under the Sales Tax Act, 1990.

i)            Registration through application of a person liable to be registered.

ii)          Compulsory registration

Persons Liable / Required to be Registered [Rule-4]

The following persons engaged in making of taxable supplies in Pakistan (including zero-rated supplies) are required to be registered under the Sales Tax Act, 1990.

1)         Manufacturer:

            A manufacturer not being a cottage industry is liable to be registered.

2)         Retailer:

            A retailer whose value of supplies in any period during the last twelve months   exceeds Rs.5 million is required to be registered.

3)         Importer:

            A person who imports goods in Pakistan is liable to be registered.

4)         Wholesaler:

            A person who deals in as wholesaler is liable to be registered.

5)         Dealer:

            A person who deals in as a dealer of a particular person is liable to be registered.

6)         Distributor:

            A person who deals in as a distributor of a particular person is liable to be registered.

7)         Person required under any law to be registered:

            A person required under any law (whether federal or provincial) to be registered for the         purpose of any duty or tax collected or paid as if it were a levy    of sales tax to be           collected under the Sales Tax Act, 1990.

8)         Commercial exporter:

            A commercial exporter, who intends to obtain sales tax refund against his zero rated  supplier

. 

 METHOD OF REGISTRATION  

  Required For Sale Tax Registration  

INDIVIDUL:

Copy of CNIC

Copy of NTN

Letter Head

Bank A/c Maintainer Certificate

Rent Agreement (if any)

Uitilities Bills

PARTNERSHIP FORM:

Copy of CNIC of Partners.

Copy of NTN (Firm)

Letter Head

Bank A/c Maintainer Certificate

Rent Agreement (if any)

Utilities Bills

COMPANY :

Memorandum or Article of Association

Company Registration Certificate

Copy of NTN

Copy of CNIC of Share Holders

Bank A/c Maintainer Certificate

Letter Head

Utilities Bills

REGISTRATION

Every person in sectors mentioned above, who makes a taxable supply in Pakistan is required to be registered under the Sales Tax Act. However, manufacturers having taxable turnover below five million rupees and also utility bill below Rs. Seven lac during the last twelve months are exempted from registration and payment of sales tax . Similar exemption is also available to retailers having total turnover below Rs. five million in the last twelve months.

The rate for sales tax is 16% of value of supplies. However, there are some items which are chargeable to sales tax at 18.5% or 21% of value of supplies (see SRO 644(I)/2007 as amended by SRO 537(I)/2008 dated 11th June 2008)

The Registration Form(s) are submitted to the Central Registration Office, FBR, or Sales Tax Collectorates/ RTOs for the allotment of a Registration Number by the persons liable to be registered under the Sales Tax Act. The taxpayer is then issued a Certificate of Registration.       

RETURNS

As per law each registered person must file a return by the 15th of each month regarding the sales made in the last month.All registered persons are required to file returns electronically and in such cases the payment is to be made by the 15th and return can be submitted on FBR’s e-portal by 18th. Detailed procedure in this respect is given in Sales Tax General Order no. 04 of 2007.There are some sectors which are required to file returns on quarterly (tri-monthly) basis e.g. retailers including dealers of specified electric goods and CNG dealers.  

MAINTENANCE OF RECORDS

All registered persons are required to maintain records at their business premises of the goods purchased and supplied made by them. All the records are required to be kept for a period of 5 years.

 

REFUNDS OF SALES TAX

  In cases where the Input Tax exceeds the Output Tax due from the registered person in respect of a tax period because of exports or other zero-rated supplies, the excess amount of input is refunded back to the taxpayer within 45 days. In all other cases of excess input tax, the Board can specify the procedure for refund.

 

ADDITIONAL TAX

If a registered person does not pay the tax within the specified time or claims a tax credit or refund which is not admissible to him, or incorrectly applies the rate of zero percent to the supplies made by him, he has to pay the additional tad at the following rates:

One and half percent of tax due or the part thereof per moth;However, in case of tax fraud, the rate of additional tax shall be two percent per month. 

ARREARS

  The work regarding Arrears gets initiated in the following cases:

Late or no submission of the Returns

Amount paid is less than the tax amount payable

A demand raised after an audit/ scrutiny is upheld after ad

WAQT TV is a proud new member of the Nawa-i-Waqt group. Editorially independent and backed by the largest news correspondent network in Pakistan, WAQT and its journalists are the flag bearers of a free press and media in Pakistan. Independent of partisan interests, we are dedicated to playing a leading role and providing a real and effective contribution to the formation of an informed democracy. Our news has its value in journalistic leadership, its enthusiasm for knowledge building and for the part it plays in promoting Pakistan’s culture.

 

The addition of WAQT TV to the Nawa-i-Waqt group is not just about changes in technology, it is not just about the explosion of choice across the media. It’s about communities undergoing rapid change, about social and economic relationships fracturing and re-forming in new and different ways. It’s about Pakistan itself changing, about very different attitudes in an atmosphere where sensationalism is often mistaken for journalism. It’s about the need for a trusted name in broadcast journalism.

Introduction

  Waqt tv is covering all colours of society which includes local national and international news coverage ,current affairs and infotainment including magazine shows with a perspective of true information.Waqt tv has a wide network of correspondents all over the country with a faster and better coverage and is rapidly becoming one of the nation`s most viewed channels.waqt tv covering depend on the ideology of the Pakistan..

Registration of Sales Tax

Waqt tv is registered organization .Waqt tv deposit many types of tax such like sales tax,tax deduction,Tax advance & staff income tax .

SWOT ANALYSIS:

STRENGTHS

Pure pakistani channel

Large network corresponding

Latest Technology

WEAKNESSES

Marketing department

Research & Development (R&D)

Extra staff

No human resource department

OPPORTUNITIES

Active marketing department for increasing income.

promotion activities.

Business promotion activities

THREATS

Economic condition of country

Competitor

RECOMMENDATION

Motivating marketing department for caching more business

Checking of missing adds

Circulation enhancement target to news agent and correspondent

Staff down seizing

Cost controlling activities