Taxes & Compliance 4 min read

How to Configure Pakistani Sales Tax & Withholding

Set up provincial sales tax rates for Sindh (SRB), Punjab (PRA), Khyber Pakhtunkhwa (KPRA), and Balochistan (BRA), along with income tax withholding.

Before You Start (Prerequisites)
  • Admin or Owner role in the organization

Step-by-Step Instructions

1

Open Tax Settings

Navigate to "Taxes" > "Tax Rates" in your dashboard navigation.

2

Inspect Standard Tax Presets

LedgerFlow comes pre-loaded with standard Pakistani rates: Sindh Sales Tax on Services (SRB 13%), Punjab Sales Tax on Services (PRA 16%), and Federal Standard (18%).

3

Create Custom Rate

Click "+ New Tax Rate" if your company qualifies for reduced or specialized withholding rates.

4

Apply to Invoices & Bills

When creating an invoice or bill line item, select the applicable tax rate from the dropdown. Taxes are segregated into tax liability accounts automatically.

5

Generate Tax Summary

At month-end, navigate to "Reports" > "Tax Summary" to export the total output tax collected and input tax paid for e-filing.

Pro-Tips & Best Practices
  • Ensure your organization profile contains your NTN and STRN numbers so they appear automatically on all tax invoices generated for clients.