At Josh and Mak International, we specialize in providing legal advice on taxation matters in the power, mining, and energy sectors. Our expert team regularly assists companies operating in these industries by offering comprehensive guidance on various tax-related issues. By navigating the complexities of Pakistan’s taxation laws, we help our clients maximize efficiency, ensure compliance, and optimize their tax positions.
Sales Tax: Sales tax, also known as Value Added Tax (VAT) in many jurisdictions, is governed by the Sales Tax Act 1990 in Pakistan. All supplies made in the course of taxable activities and imported goods are subject to sales tax, with certain exceptions listed in Schedule 6 of the Sales Tax Act. It is important for exploration and production (E&P) companies to be registered under the Sales Tax Act, as the supply of E&P products attracts sales tax. Our team can provide guidance on sales tax registration, compliance requirements, and the implications of sales tax on E&P activities.
Import Duties: Customs duty on the import of plant, machinery, equipment, and other accessories used by E&P companies, their contractors, subcontractors, and service companies is governed by SRO.678 (1)/2004 dated 7 August 2004 (SRO), issued under Section 19 of the Customs Act. We can assist in understanding and leveraging the exemptions and concessions available for E&P companies. This includes exemptions from customs duty for machinery, equipment, materials, specialized vehicles or vessels, pickups (four-wheel drive), helicopters, aircraft, accessories, spares, chemicals, and consumables that are not locally manufactured. These concessions are applicable to goods imported by E&P companies and their associated entities, subject to certain conditions specified in the notification. Our team can provide detailed advice on eligibility, compliance, and the documentation required to benefit from these exemptions.
Federal Excise Duty on Minerals/Related Products: Excise duty is a single-stage duty levied on specified goods produced or manufactured in Pakistan, imported into Pakistan, produced or manufactured in non-tariff areas and brought to tariff areas for sale or consumption, as well as on specified services provided or rendered in Pakistan. We can guide companies operating in the mining sector on matters related to federal excise duty, including compliance, applicable rates, and reporting requirements.
Stamp Duty: Stamp duty is levied on written deeds, wills, or other formal legal documents for the transfer of property or mine leases, among other transactions. Our team can provide advice on stamp duty requirements, applicable rates, and the proper execution of documents to ensure compliance and avoid any potential disputes.
Comprehensive Tax Services: Our expertise extends beyond specific tax matters. We offer a range of services to our corporate clients, including tax planning, supervision of books of accounts, preparation and submission of sales tax returns, income tax returns, and statements. We also provide representation for tax assessments before taxation authorities, appearances before appellate forums, and assistance with NTN (National Tax Number) registration and sales tax registration. Our aim is to ensure that our clients’ businesses are tax-efficient and fully compliant with tax regulations.
Navigating the complex taxation landscape in the energy and mining sectors is crucial for companies to optimize their operations. At Josh and Mak International, we provide specialized legal advice on taxation matters, assisting our clients in maximizing efficiency, ensuring compliance, and minimizing tax liabilities. Our experienced team is well-versed in the intricacies of Pakistani tax laws and regulations, enabling us to deliver tailored solutions that meet our clients’ specific needs. Contact us today to benefit from our expertise and achieve your taxation goals in the energy and mining sector.
