INTERNSHIP REPORT ON

AKBAR LAW ASSOCIATES

ADVOCATE &TAX CONSULTANTS

SUBMITTED BY
Bilad Baig
E20BBA070
BBA 2 Year (Evening)
Session 2020-2022

HAILEY COLLEGE OF BANKING & FINANCE

UNIVERSITY OF PUNJAB, LAHORE
 ACKNOWLEDGEMENT

I would like to thank the Almighty ALLAH. Who has bestowed and blessed me with the
time and the dedication to complete this report.
I would like to thank my parent for always supporting me in whatever I do. I would also
like to thank my office staff and fellow interns especially my internship Principal Officer Mr.
Ahmed Naseer everyone at the branch who made these last six weeks of internship, an ultimate
learning experience for me.
DEDICATION
I’ m dedicating this to my brother who gave the wonder opportunity to do this wonderful project
and who helped me a lot during my internship and support me to do things effectively and
efficiently.
As a brother you are truly an inspiration to your family. Your strong leadership skills, along with
the support and dedication you show to your team, has earned you much deserved respect and
admiration. I feel lucky to be my brother.
I would like to dedicate this internship report to my parent who supported me in every aspect of
life and especially all this credit goes HCBF who makes me able to get market experience during
my theoretical tenure.
EXECUTIVE SUMMARY

My internship at Tax Consulting is very wonderful experience. C.E.O of the company after
meeting me verified my internship letter issued by HCBF and introduced me to the company’s
staff. During my entire internship I report to Mr. Ahmed Naseer (Companies Compliance
Supervisor) and Mr. Abdul Rehman (General Manager). I was told to join Mr. Ahmed Naseer
(C.E.O). I was working Tax with holding and helped in generating fee Challan from the FBR
website. I was also assigned duty to study and prepare the companies registrations forms from
the SECP website. I was sent SECP and FBR main office to check and learn from their
environment how these concerning Institution are operating. At the Organization I was assigned
the last task and responsibilities of a Junior Consultant and assisted Senior Consultant (Sarib
Ghori) and Supervisor (Sir Ahmed Naseer) with their workings and operation. At start of the
procedures to registered a Privates company in FBR and SECP. We done a meeting with our
team, in the meeting we were told the procedures used by the organization and personal involved
in consulting department. For the next period of six weeks, I never felt any boredom in that
refreshing environment where I haven’t seen any dispute or ordinary organizational politics.
Besides it, there was no manager-subordinate discrimination among the staff members. The
remarkable cooperation among the employees is one of the major causes of the success of the
company.

TABLE OF CONTENT
1. Acknowledgment
2. Dedication
3. Executive Summary
CHAPTER No. 1
1.1 Brief introduction of Organization Business Sector
1.2 Overview of the Organization
1.2.1 Brief History
1.2.2 Business Value (Total number of stocks, Share, bonds/ commodities future contracts
Planned for a particular period, etc.)
1.2.3 Product Line (List Complete range of products/ service of the organization)
1.2.4 Competitors
1.2.5 Brief Introduction of All the Department
1.2.6 Comments on the Organization Structure
CHAPTER No. 2
2.1 TRAINING PROGRAM
2.2 INTERNSHIP PLAN
a) A brief introduction of the branch or department where you perform your internship.
b) The starting ending dates of your internship.
c) The name of the department in which you obtained training and the duration of your training
in these departments.
2.3 DUTIES PERFORMED
2.4 INTERNSHIP WEEKLY SCHEDULE
2.4.1 Week One Responsibilities and Tasks
2.4.2 Week Two Responsibilities and Tasks
2.4.3 Week Three Responsibilities and Tasks
2.4.4 Week Four Responsibilities and Tasks
2.4.5 Week Five Responsibilities and Tasks
2.4.6 Week Six Responsibilities and Tasks
2.5 LEARNING EXPERIENCE
2.5.1 Knowledge Acquired
2.5.2 Skill Learned
2.5.3 Observed Attitude and Gained Values
2.5.4 The Most Challenging Task Performed
CHAPTER No. 3
3.1 SWOT ANALYSIS
3.2 ANALYSIS OF SPECIALZED FIELD
a) Ratio analysis
b) Finance approval
3.3 PROBLEM IDENTIFICATION & SOLUTION
a) Problem identification
b) Consequence of the current problem
3.4 FUTURE PROSPECT OF THE ORGANIZATION
3.5 Basic Concepts of Tax on Income
a) Taxable Income
b) Total Income
c) Heads of Income
d) Resident
e) Pakistan Source of Income
f)Foreign Source Income
g) Person
h) Company
i)Association of Person
j)Tax Year
k) Income Subject to a Separate charge
l)Income subject to Final Tax
m) Separate Block of Income
n) Tax
o) Income Tax
p) Agriculture Income

CHAPTER No. 4
4.1 CONCLUSION
4.2 RECOMMENDATION
a) Based on strategies developed in SWOT
b) Should not be Vague, Abstract, Idealistic

Chapter No 1
INTRODUCTION
1.1 BRIEF INTRODUCTION OF ORGANIZATION BUSINESS SECTOR

Taxes are the cost of living in a civilized society that people have to pay for economic
development and planning. It is the realization of money in the country. Government
 taxes on good, business, individual and society. Pakistan’s federal tax is the same as any
other tax system in the world. Direct tax and indirect tax can be broadly divided into two
categories. Direct taxes include salaries, interest on securities, income from property, and
income from businesses while indirect taxes include sale tax. Unfortunately, only 5
percent of Pakistani people pay taxes directly. The remaining 95% avoid payment by not
showing income or by building close relationship with tax professionals and senior
executives. Tax collection is a major economic challenge facing Pakistan.
Our company serve client in key area of our business, including audits and guarantees,
taxation, accounting compliance, forensic audit, transaction advisory, due diligence
research, information technology, human resources, financial advisory services,
management consulting and disputes. We have a wealth of individual and group
experience that we have provided. Resolutions, arbitration, family settlement,
liquidations, acquisitions, mergers, splits, reconstructions, etc.
By focusing on the industry that is the basis of RACO’s approach, we were able to gain a
deeper understanding of our client’s business and provide an informed perspective on the
issues they are facing. This is a strategy implemented across all of ARCO’s core services,
backed by global and regional strengths.
The company is keenly aware of the need to provider consulting and technical services
under the concept of total client services. Our ability is always in a state of sophistication
and review to ensure our clients that the services available are in line with industry
advance and tomorrow’ requirements. Our policy us to accept engagement only in areas
where we are qualified. We offer a very broad continuously expanding range of services.
The following criteria for managing all our work, especially consulting work, overcome
and alleviate the concern of many common clients.

1.2 OVERVIEW OF THE ORGANIZATION

My company is tax consulting is taxation and company registration firm located in office
No. 109 Sadiq Plaza Mall Road Lahore.

Company Profile

Tax Consulting, Inc, Management Consultants is an independent company of tax

professionals, accountants and auditors registered with the Pakistan cost Management
accountant association (ICMAP) and FBR along with the Rawalpindi & Islamabad Tax
Bar Association (RITBA).

Contracts
 The origin of the company can be traced back to 1956. Through successful growth and
rigorously enforced quality standards, the company still maintain strong and independent
practices today.

The company provides audit, tax and consulting services to a wide range of client on a
wide range of industries/ sector and is a member of the world bank, Asian Development
Bank, United Nations, Pakistan Stock Exchange, Pakistan State Bank and Stock
Exchange. I will. The Pakistani Commission, to name a few. The company engages in
activities covering a wide range of professional relation sub-activities in the areas of
corporate law, secretarial compliance, taxation, auditing and accounting. The main
activities and services that the organization is responsible for are:
 Taxation
 International taxation
 Consulting
 Secretary’s work
 Accounting
 Evaluation
 Registration

Given an overview of the complete sector in which your organization is categorized according to
your current scenario. A “brief introduction to the business sector” refers to the main areas that
an organization deals with: consumer consumables, duration goods, or services. Textiles, dairy
products, telecommunications, etc. however, you should discuss the major sectors, not the
organization under consideration. For example, in the case of an organization (if the internship
was done at a textile factory), here is a brief description of Pakistan textile sector. This will be
done in the next section, so do not include an organization referral here.
We serve clients in the key areas of our business, including audits and guarantees, taxation,
accounting compliance, forensic audits, transaction advisory, due diligence research, information
technology, human resources, financial advisory services, management consulting and disputes.
We have a wealth of individual and group experience that we have provided. Resolutions,
arbitration, family settlement, liquidations, acquisitions, mergers, splits, reconstructions, etc.
Our industry focus has enabled us to develop in-depth knowledge of our clients’ businesses and
to provides them with an informed perspective on the issues they face. It is a strategy that run
across the full range and core services and is underpinned by regional strength.
The company is acutely of the need to provide consulting under a total client service concept.
Our capabilities are under a constant state of refinement and review to assure clients that
available services are in keeping with the progress of industry and the requirement of tomorrow.
Our policy is to accept engagement only in field in which we are qualified. We offer a very
broad and continually expanding range of services. The following standards, which govern all of
our work, especially consulting work, overcome and alleviate many common client concerns.
Professional Approach

In the organization client requesting consulting work are concerned about acquiring a high
degree of project expertise, careful management, and strict cost control. To ensure that these are
delivered, all consulting work is under the direct control of a senior expert responsible for its
completion. This responsibility begins with the initial consultation with the prospect and a
complete understanding of the prospect needs. Understanding in a letter outlining the purpose
and scope of the work we propose to undertake, explaining our expected approach, and providing
a professional time and price quote that will be involved documented.

Customer Preference
In organization client know their company and their situation intimately and expect consultants
to make recommendations and develop solution that are individually suited to them. To advise
each client we form an appropriately skilled project team, calling on our consultants having the
necessary skills. Through this carefully structured project team we bring our prior experience to
bear, we identify the problems, and then tailor our approach and recommendations to solve the
problem within the limits of available resources.

Responsive Behavior
Responsive behavior is must to be effective consulting projects must have sufficient scope and
depth; to be cost effective the project team must perform no more work than is strictly necessary.
Our principle is to provide only as much or as little assistance as is needed to achieve a project’s
goals. To ensure optimum level of involvement we define methodology and scope and manage
the assignment with frequent and direct consultations between the senior professional heading
the project team and the client.

Engagement of Client
Client is everything for company so consulting project to often leave the client stranded after the
consulting team has come in, studied, made recommendations, and departed. To achieve better
understanding, to prevent staff disruption, and to facilitate and cement necessary changes, we
strongly encourage involvement by a client’s managers and staff.
Normally, client personnel are incorporated into the project team from the earliest phase so that
they can provide their knowledge of and insight into the client organization, become thoroughly
acquainted with the nature and intent of our study, and be capable of and enthusiastic about
implementing our recommendations.

Quality Work
Company provide quality work and thoroughness, consistency, and accurate detailed information
are the foundation if successful consulting project. These are not only a direct reflection of skills,
experience, and qualifications of the individual professional involved, they are also the product
of carefully developed and tested methodologies and standards.
Company is strongly committed to quality control. Before we report to our client, all our
consulting studies are reviewed by the independent colleague, a senior professional who has not
participated in the project. Other control is applied to ensure the validity of our
recommendations.

Culture Difference
Each culture observes specific procedure, customs, and work habits which influence the
successful execution of an assignment. We recognize the importance of these differences and
adapt our work methods and recommendations to accommodate them. As well, wherever
practical, we use staff located in our offices for various assignment who are knowledgeable
about and comfortable with the local culture, history, economy, and political systems.

1.2.1 Brief History

Tax is a consulting company, Cost and Management Accounting was established in 1956. Tax
consulting have office in all major financial districts of Pakistan. The employs a diverse range of
qualified and experiences professional which include ICMA cost and Management Accountants,
Certified Internal Auditors, Certified Information System Auditors, Masters in Business
Administration, Law Graduates, information System Analyst, Tax Specialists and Corporate
Affair Consultants. Our client teams unite local and expatriate professionals to deliver
knowledge where it is needed.

1.2.2 Business Volume (total number of stocks, Share, bonds/ commodities,

future contracts planned for a particular period, etc.)
 Tax consulting is the partner based having two-member partnership and having 60-40
percentage of having share in the organization. Tax consulting will have an annual revenue
growth rate of 12% Per year. The partner will acquire Rs. 600,000 of debt funds to
developed the business. The loan will have tenure of 5 year with an interest of 5% per
annum.

My Analysis:
In my point of view if economy trend goes to downward it will obtusely affect our
company revenue but our services always have great demand due to complexity of tax as
well as corporate matter so even in the extreme situation, we are able to sustain our
business and follow the concept of going concern.

1.2.3 Product Lines (list complete range of products/ services of the

organization)

Taxation

Income tax and sales tax filing of income tax return, sales tax Indirect Taxes – VAT/
Services Tax / Professional Tax: Registration, Submission of VAT and Services Tax
return, Assessment Processes, Consulting on related matter special Taxes / Customs and
Other Related Duties: Registration, Special Tax Return Filing, Appraisal Cases,
Consulting on related matters.
Wealth Reconciliation
Transfer Pricing
Departmental appeal, court appeals
Custom resources
International Taxation
FEMA, Transfer Pricing audit, Form 15CB / DTAA, Advance Decision (AAR),
Withholding Tax
CONSULTING
Corporate Compliance
Legal opinion
Project / Investment
Creative Approach
Our approach is to provide principal-led customer services. An individual or lead partner
handles each customer’s affair and provides the focal point for each customer inquiry. This
management philosophy ensures that the work performed for a client, whether routine or
requiring specialized skills, is attended to with greater quality. The engagement partner is
supported by an experience pool composed of cost and management accountants, business
consultants and specialists in information solution, cost and management accountants,
lawyers, specialists in tax and corporate law and other professionals from diverse
disciplines organization believe in a constant approach to offering high quality
professional services for our customer has helped us immensely in building long -term
mutually beneficial relationships.
Firm offer fast and reliable services in the field of income tax consultancy, auditing,
accountant certification, business formation consultancy services, accounting services,
NGO/Trust, etc. KCO is the team of young, passionate and energetic professionals to
provide high quality professional services.
With the combination of experience and young staff, we offer the most economical and
high-tech services and facilities to its customers. By our values, we do business
transparently and provide a comfortable and secure environment for our customer for their
confidential data and information.

Initial Public Offering Services

Tax consulting services team is comprised of highly experienced professionals who have
successfully guided hundreds of companies through the initial public offering process.
Beyond the technical knowledge necessary to help clients’ company launch its initial
offering, company provides practical and unique advice that can help clients attain positive
results, both immediately and in the long term. Tax consulting team includes dedicated
senior staff throughout the company. With in-depth knowledge of GAAP, international
Financial Reporting Standard (IFRS) and SECP rules and regulations, company can help
client’s company navigate the offering process, from initial strategy through
implementation and follow-up.
For Registered Privates limited company’s IPOs tax consulting:
 Provides seasoned insights throughout the course of client’s transactions and other
members of transaction team, such as your SECP official, underwriters and
investor relations company.
 Participate with clients in discussions with the SECP prior filing
 Help clients with identify the financial statement requirement, including footnote
disclosures, financial statement schedule, pro forma financial statement and other
separate financial statement.
  Review drafts of the prospectus or offering memorandum, including the financial
statements
 Anticipate SECP comment and advise clients company on how to address and
resolve SECP comments
 Assist clients company team in their preparation of comfort letters
 Provide training related to the implementation of and changes in GAAP and the
SECP rules and regulation 29
 Advise clients company on how to meet ongoing SECP reporting obligations

1.2.4 Competitors

 TMR Consulting
 MAR BUSINESS & CONSULTANCY
 OLY Consultant
 BSNS CONSULTING (Cost and Management Accountants)
 Apex Consulting Pakistan – Harnessing Knowledge
 Decision Management Consultants
 ABH Tax Consultants

1.2.5 Brief Introduction of All the Department company has taxation

department that offers

Corporate Taxation
Personal
Taxation
Sales tax

Advisory department that offers

Business Risk
Business Management
Privatization
Investment
Financial management
 Modeling
Viability
Overdue Studies
Diligence
Secretariat and Corporate

1.2.6 Comments on the Organization Structure

Organization structure is very balanced. O leads company with business managers and tax
consulting specialist and many public relation managers that deals public efficiently. Taxation
department is best department with separate team and professionals.

Chapter No. 2
INTERNSHIP PLAN & LEARNING EXPERIENCE
In this chapter I am going to write my training program and the reason for selecting the tax
consulting (Cost % Management Accountants) why I choose tax Consulting (Cost &
Management Accountants).

2.1 TRAINING PROGRAM

Reason for selecting the organization:

I choose tax consulting company to implement my theoretical knowledge into practical field, so I
fund an opportunity to do my internship and to enhance my skill and to learn from practical life
with in the organization. I was also interest to be a tax consultant and the auditor because I made
a plane to does ICMA after my BBA degree and will start my own consulting company in capital
territory. So, tax consulting become a way that make me able to achieve my career goal.

2.2 INTERNSHIP PLAN

My internship is in audit and taxation department, Companies compliance and cost and
management accounting, all these comes in the consulting department. I really like the work
envenoming challenging tasks, and potential growth of the staff.
b. 10- June-2022 to 22-July-2022
c. I did work in Companies compliance department and it has some different sub-department like
Cost and Management Accounting, Audit and taxation etc. So, I spend my time an all these areas
of consulting company.

2.3 DUTIES PERFORMED

I learned that tax advisor and tax advisor are experts in professional tax law, planning and
compliance. They serve business and individuals, keeping up-to-date on new tax laws and
positioning taxpayers for short- and long-term tax optimization. In addition to preparing tax
returns, tax advisor also works closely with client throughout the year to ensure the client’s tax
liability is minimized.
They also teach me to adept these various skill sets. Being the tax consultants, I should possess
strong written and verbal communication skill and should be able to explain tax law and
strategies in a way that is accessible and easy for client to understand. As a tax consultant I can
work for public accounting company, law offices, financial consulting company and many even
have my own independent tax consultation business.
My responsibilities are conducting research on tax laws, strategizing with client =s to minimize
tax liability, communicating with client to explain tax issues, preparing tax returns Estate
planning, Keeping client compliant with their tax obligations.
Tax consulting company, we have many clients affected by the same issue, the ability to draft a
well-written and concise letter is often the most effective means of disseminating information to
a number of different clients. To ensure that you have the best consultant, choose them from
renowned company like us at tax consulting which is a tax consulting service.
Tax consulting are dedicated to serving small businesses in Accounting, Bookkeeping, Financial
Statement, HST Filing, WSIB Filing Payroll, Business Registrations, and Taxation (Personal,
Small Business or Corporations in Lahore). We are experts in providing tax preparation foe
Pakistan.
Tax Consultation for individual & corporate clients
At tax Consulting, we have been providing professional tax, audit and accounting solutions to
individual and corporate clients since its inception way back in 2001. We are a tax consultant in
Lahore that prides itself in talking an integrative approach to financial planning, helping clients
structure their finance from top to bottom.

2.4 INTERNSHIP WEEKLY SCHEDULE

Duties and responsibilities performed: Here is a detailed description of the duties and
responsibilities that I have performed during my internship on a weekly basis.

2.4.1 Week One Responsibilities and Tasks

In first week, responsibilities are to create challan from on FBR website

Sale Tax

Federal Excise

Income Tax

Income Tax Annual Return

Sale Tax Withheld

Tax on Immoveable Property

2.4.2 Week Two Responsibilities and Tasks

Financial statement are the annual record of a business’s profit and loss for the year. They are
usually divided into two parts: an income statement which reflect the business’s net income, and
a balance sheet which reflect the capital assets and liabilities of the business. This includes both
short-term and long-term assets and liabilities such as cash, accounts receivable, account payable
and notes payable. If you’re self-employed individual doing business as a sole proprietor, you’ll
need to prepare a schedule C for your tax which is summary of your business income and
expenses.
 Prepare the Schedule C, which is the record of your business income and expenses by
using the total off the year-end profit and loss statement. The Schedule C has line items
for most income and expense items. For example, in the income section, the form will ask
for gross income. This can be found at the top of your financial statement. The same
applies for expenses. If your business has an expense item that is not show on the IRS
form, you can list it as another expense at the bottom of the form.
 There are several supporting schedules that must be attached to the return that provide
supporting detail to some of the expense’s items shown on schedule C, such as
depreciation expenses and auto and truck expense. Your bookkeeper or accountant should
be able to provide the detail associated for these items.
 Transfer the net profit or loss shown on the schedule C to the front pages of the
individual tax return and also to the schedule SE which is part of the individual return.
Schedule SE is the form that report self-employment or social security taxes to the
government. This is how self-employed individual pay into social security. It is based on
a flat-rate of 13.3 percent. For example, if your business showed a profit of $10,000 you
would have as SE-tax of $1,330.
 Complete your return by adding your net profit or loss from the schedule C with all the
other personal tax return addition to income or deductions, including your itemized
deductions such as home-interest and property taxes. On page two of the return, you’ll
calculate your personal income tax and also add this to the SE-tax you calculate from
form SE. Your SE-tax and personal income tax comprise the total tax bill on your return.

2.4.3 Week Three Responsibilities and Task

In third week, I have learned how to register new call center in Pakistan software expert
board (PSEB). Signup and create login (login credentials will be provided by auto email).
Fill the online registration form, upload required document (CNIC of all Directors/
Shareholders/ Partner/ Proprietor) and Submit for initial approval (submission with missing
mandatory information may be declined)
After getting initial approval, deposit requisite fee, upload payment receipt and submit for
final approval.
Once the registration payment is verified it usually takes about 2-5 working days to process
and issue the provisional letter (valid for 60 days).
The registration will be confirmed after physical verification and site inspection of call center
premises by PSEB.
To complete the verification, process the applicant will be required to submit a request for
physical verification of their premises and upload all applicable document as mention below:
PSEB registration renewal charges can now be made through online banking/mobile banking
apps. If it is not possible to make online payment, you may pay through a pay order/ demand
draft as well. Please note that the receipt of online payments along with company name and
contact detail of the focal person must be emailed to registrations@pseb.org.pk to ensure
timely processing of your PSEB registration.

2.4.4 Week Four Responsibilities and Task

 Submit the process
Taking print of the challan of PKR 200/- OR URGENT FEES PKR 700/- selecting branch of
UBL OR MCB or In fourth week, I learned how to register the business organization
In first step we choosing the business name and making a visiting card, letterhead and stamp
for that business name and give to Authorized person.
 Get business name Registered
 Go to SECP official website for send request for name availability after confirming
the name then register the business name
 Signup and log in eservices portal
 Select fast track registration services if you want urgent processing
 Enter data in the online form
 making payment
 Register NTN number on FBR website
 Original CNIC
 Cell phone with SIM register against his original CNIC
 Personal E mail address belonging to him
  Original certificate of maintenance of person bank account in his own name
 Original evidence of tenancy/ ownership of the older premises if have a business
 Original paid utility bill of business premises not older than 3-month if having a
business
 After e-registration getting an E-mail with user name and password after that I am
able to log in and complete e-enrollment. After that declaring business name as
mentioned on letterhead while filing the form. And making share business name on
NTN number form and my bank account title must be the same.

2.4.5 Week Five Responsibilities and Tasks

In fifth week, I learned how to file a monthly Sales Tax Return. There are some steps to file a
sale tax return in Federal Board of Revenue portal which are as follow.
Visit the official website of FBR which is fbr.gov.pk
Second step is to put the user id and password of a company.
After login the window open which shows the profile of a company in which their previously
return files are visible.
For filing a new sale tax return for any month, click on declaration, after the tax year and month
are shown in the window, select year month for which sale tax is going to file.
In fifth step click on annexure -C when annexure -C window become visible then report than
monthly sales by clicking on “Add Sales Invoice”. After adding all the sales return then click on
back button to see sales tax profile.
After that click on annexure-a then click on search button after clicking on search button all the
purchases of the month become visible on the window, after that select all entries and go back to
return.
After then create a PSID which is made through e-payment in the e.fbr.gov.pk site.
After submitting PSID then Annexure-C is submitted verify the return.
After verifying return, then on below there is an option of feed CPR, then click it and attached a
required CPR of a month.
At the last click on the process and submit button then the return will be submitted.
Important periods of sales Tax submission.
2.4.6 Week Six Responsibilities and Tasks

I Learned book keeping the process of bookkeeping involves Four basic steps:
Financial transaction and assigning them to specific account;
Writing original journal entries that credit and debit the appropriate account:
After those adjusting entries at the end of each accounting period.

2.5 LEARNING EXPERIENCE

I learned many skills like how to do taxation how to handle public how to communicate with
higher management how to file tax return and how to handle pressure. My overall experience is
very good and many people supported me during this learning time.

2.5.2 Skill Learned:

I gained deeper insight into the audit industry and it has helped me significantly with my career
planning. I developed a better understanding of the career path of an auditor through the
internship, helping me to make an informed career decision. My biggest take away would be the
new long-term relationship and connection which I had forged with my colleagues and fellow
interns at Deloitte.

2.5.3 Attitude and Gained Values

I gained many things and my attitude change towards different things. I like how interns are
treated just like full time associate and get assigned actual and meaningful tasks which are
crucial and beneficial to the audit engagements. It feels great to be a part of the actual audit
engagement team! The most memorable part of my internship was when my engagement for the
major client. Even though I only joined the team for the final six weeks, I still felt a strong sense
of achievement after the signing-off of my first audit engagement. The best part of the internship
was the audit off-peak party where everyone in the audit department put their work aside and
came together for a night of fun and celebrations.
2.5.4 the Most Challenging Task Performed:

I faced many challenges being in department I handled specialized account which demand skill
sets which had not been taught in the general audit curriculum in school. Hence, this was
challenging at time when I was faced with a new account which I had not seen before. However,
the senior and mentor were always ready and willing to give their advice and guidance to help
me overcome these challenges.
 Chapter No. 3
3.1 SWOT ANALYSIS

SWOT analysis can help you develop a plan for the future by analyzing your organization’s
strengths, weaknesses, opportunities and threats. The SWOT analysis considers each company’s
individual internal and external issues. Accounting and tax company must evaluate trade-specific
factors for effective industry analysis.
Strengths
Good management
Leader have management skill
Company has many assets
Company has highly qualified employees
Controlled growth
Young owner
Family environment

Weaknesses

Limited knowledge of market outside Lahore

Time consuming processes, only one draftsmen/ Computer operator
More emphasis on business Taxation services rather than audit

Opportunities

Develop benefit business

Add additional high Companies compliance and tax services to drive additional business
Staff training on system and new soft wares enabling them to perform their Companies
Compliance well
Threats

Possible turnover of employees due to excess of working hours Competent staff hiring
Day by day increasing Competition in taxation audit markets
Turnover of customer to another company
Client handling is reactionary
Loss of contingents

3.2 ANAYSIS OF SPECIALIZED FILED

a. Ratio’s analysis of the company (2 year)
the term previous ratio is the relationship between current assets and current liabilities. This is a
measure of general liquidity.

YEAR ASSETS LIABILITIES RATIO

2019 1265424 5277663 2.12
2020 1044233 3359933 1.5

Current ratio has decreased from 2.12 to 1.5 in the year 2019 to 2020 due to pandemic and
lockdown situation in twin cities of Pakistan. This ratio determines margin of safely for creditors,
there has decrease in the ratio during 2020 compared with 2019 due to Covid-19.

3.3 PROBLEM IDENTIFICATION & SOLUTION

I identify a problem while my internship duration and we also tried and to solve that problem
within and outside the organization

a. Problem identification:

The problem I found in the organization it was we had no much audit clients rather than
taxation so we find it was a problem for the organization, so we decided to solved out that
problem.

b. Consequence of the current problem:

 In our community there is a perception that only chartered accounted are the competent
for audit and taxation work in more or less than 3 million revenue SMCs or corporations. While
in real it is not true, in my ICMA certified person is more competent than CA.

c. Solution

The solution is we should increase our study area and doing high profiling audit and
taxation qualification courses to get more our audit clients. Improving our relationship with
clients and also changing their perception through giving them brief knowledge about the
auditing rules.

3.4 FUTURE PROSPECTS OF THE ORGANIZATION

Future of the organization is very bright. Organization will be recognized as a leader in
the community known for delivery timely, quality professional services through a multi-
disciplinary approach in taxation and company registration in all over the world.

3.5 Basic Concepts of Tax on Income

The Federal levy, tax, on income (Income Tax) is governed by the Income Tax Ordinance, 2001
and Income Tax Rules, 2002. It is an annual charge on income. This includes taxable income,
income subject to separate charge and income subject to final tax of a person for a tax year, and
also includes global income of the resident person, even if it has already been taxed outside of
Pakistan. In this brochure from now onwards taxable income refers to as taxable income
excluding separate block of income subject to fixed tax and income subject to final tax.

a) Taxable Income

“Taxable Income” means total income reduced by: Donations qualifying for straight
deductions; and Following deductible allowances: - Zakat paid under the Zakat and
Usher Ordinance, 1980; (Zakat paid on a debt, the profit of which is chargeable to tax
under the head “Income from Other Sources” is not deductible from total income. Such
Zakat is an admissible deduction against profit on debt); - Workers Welfare Fund paid
under the Workers Welfare Fund Ordinance, 1971 (applies to certain specified industrial
establishments); and - Workers Participation Fund paid under the Companies Profit
(Workers Participation) Act, 1968 (applies to companies only).
b) Total Income

“Total Income” is the aggregate of income chargeable to tax under each head of income:
c) Head of Income

“Head of Income” – Under the Income Tax Ordinance, 2001, all income
are broadly divided into following five heads of income:
 Salary;
 Income from property;
Income from business;
 Capital gains; and
 Income from other sources
[like dividend, royalty, profit on debt, rent from sub-lease of land or building, income
from lease of any building together with plant machinery, prize on bonds, winnings from
a raffle, lottery or crossword puzzle, or profit on loan, advance, deposit or gift (subject to
certain conditions)]. Different set of rules apply for determination of income chargeable
to tax under each head of income. These are briefly explained later in this brochure.
Generally, income under a head of income is the total of the amounts derived as reduced
by the admissible deductions against such income, if any. Expenditures attributable to
exempt income, income subject to separate charge, income subject to final tax (and
separate block of income) are not deductible against income chargeable to tax as total
income/taxable income. Chargeable income under each head of income is further
dependent on the residential status of a taxpayer. In case of resident, it is both Pakistan
source income and foreign source income, while in case of non-resident it is restricted to
Pakistan source income only.

d) Resident

An association of persons is resident for a tax year if the control and management
of its affairs is situated wholly or partly in Pakistan at any time in that year;
 A company is resident for a tax year if –
- it is incorporated or formed by or under any law in force in Pakistan;
- the control and management of its affairs is situated wholly in Pakistan at any time in
the year; or
- it is a Provincial Government or a local Government in Pakistan.
 An individual is resident for a tax year if he
- is present in Pakistan for a period of, or periods amounting in aggregate to, 183 days or
more in the tax year; or
- is an employee or official of the Federal Government or a Provincial Government
posted abroad in the tax year. In order to compute the number of days an individual is
present in Pakistan in a tax year, the following rules apply: -
 A part of a day that an individual is present in Pakistan (including the day of arrival
in, and the day of departure from Pakistan) counts as a whole day of presence; However,
a day or part of a day where an individual is in Pakistan solely by reason of being in
 transit between two different places outside Pakistan does not count as a day present in
Pakistan.
 Following days in which an individual is wholly or partly present in Pakistan count as a
whole day of presence:-
- a public holiday;
- a day of leave, including sick leave;
- a day that the individual’s activity in Pakistan is interrupted because of a strike, lock-
out or delay in receipt of supplies; or
- a holiday spent by the individual in Pakistan before, during or after any activity in
Pakistan.
e) Non – Resident

– An association of persons, a company and an individual are non-resident

for a tax year if they are not resident for that year.
e) Pakistan Source Income

” is defined in section 101 of the Income Tax Ordinance, 2001,

which caters for incomes under different heads and situations. Some of the common
Pakistan source incomes are as under: -
 Salary received or receivable from any employment exercised in Pakistan wherever
paid;
 Salary paid by, or on behalf of, the Federal Government, a Provincial Government, or a
local Government in Pakistan, wherever the employment is exercised;
 Dividend paid by resident company;
 Profit on debt paid by a resident person;
 Property or rental income from the lease of immovable property in Pakistan;
 Pension or annuity paid or payable by a resident or permanent establishment of a non –
resident.

g) Foreign Source Income

“Foreign source income” is any income, which is not a Pakistan source income.

h) Person
 An individual;
 A company or association of persons incorporated, formed, organized or established in
Pakistan or elsewhere;
 The Federal Government, a foreign government, a political subdivision of a foreign
government, or public international organization.

i) Company
 A company as defined in the Companies Ordinance, 1984 (XLVII of 1984);
 A body corporate formed by or under any law in force in Pakistan;
 A modaraba;
 A body incorporated by or under the law of a country outside Pakistan relating to
incorporation of companies;
 An amendment has been made through Finance Act, 2013 to enlarge the scope of
definition of a Company. Now as per Income Tax Ordinance, 2001 a company includes:
i) a co-operative society, a finance society or any other society;
ii) a non-profit organization;
iii) a trust, an entity or a body of persons established or constituted by or under any law
for the time being in force.
 A foreign association, whether incorporated or not, which the Board has, by general or
special order, declared to be a company for the purposes of this Ordinance;
 A Provincial Government;
 A Local Government in Pakistan;
 A Small Company

j) Association of Persons
“Association of persons” includes a firm (the relation between
persons who have agreed to share the profits of a business carried on by all or any of them
acting for all), a Hindu undivided family, any artificial juridical person and any body of
persons formed under a foreign law, but does not include a company.

k) Tax Year
“Tax Year” is a period of twelve months ending on 30th day of June i.e. the
financial year and is denoted by the calendar year in which the said date falls. For
example, tax year for the period of twelve months from July 01, 2010 to June 30, 2011
shall be denoted by calendar year 2011 and the period of twelve months from July 01,
2011 to June 30, 2012 shall be denoted by calendar year 2012. It is called Normal Tax
year. Tax year includes special tax year, which means any period of twelve months and is
denoted by the calendar year relevant to the normal tax year in which closing date of the
special tax year falls. For example, tax year for the period of twelve months from January
01, 2010 to December 31, 2010 shall be denoted by calendar year 2011 and the period of
twelve months from October 01, 2010 to September 30, 2011 shall be denoted by
calendar year 2012. A person or class of persons may shift from Normal to Special Tax
year or vice versa subject to the conditions specified under section 74 of the Income Tax
Ordinance, 2001.

l) Income subject to a separate charge

Income subject to a separate charge, which do not form part of
total income or taxable income and are subject to tax on the basis of gross income, e.g.:-
 Dividend;
 Royalty of non-resident;
 Fee for technical services of non-resident;
 Shipping income of non-resident; and
 Air transport income of non-resident. For further details, please refer to our brochure
“Income subject to separate charge, final tax and fixed tax regimes of Income Tax”.

m) Income subject to Final Tax

Income subject to Final Tax, which are subject to collection or
deduction of tax at source and such tax collected or deducted at source is treated as final
tax liability in respect of such income e.g.:
 Income arising from business on account of:
- Sale of Imported of goods;
- Execution of contracts by non-residents
- Insurance and re-insurance premiums received by non-residents
- Any other amounts received by a nonresident (profit on debt)
- Supply of goods (other than by manufacturers);
- Execution of contracts by a Resident
- Services of stitching, dying, printing, embroidery, washing, sizing and weaving
- Media services by non-residents - Export realization (goods)
- Commission / discount on petroleum products
- Brokerage and commission;
- Plying of goods transport vehicles; and
- Natural Gas Consumption (CNG Stations).
 Income arising from other sources on account of:
- Profit on debt; (except derived by a company) and
- Prizes and winnings.
For further details, please refer to our brochure “Income subject to separate charge, final
tax and fixed tax regimes of Income Tax”.

n) Separate Block of Income

“Separate block of income” are those, which are chargeable to tax under
the respective head of income (salary, business, capital gains and other sources) but for
the purposes of calculation of tax such incomes are excluded from the taxable income and
tax thereon is calculated and charged at varying rates depending on the nature of each
such income e.g.:-.
 Income arising from salary in respect of:
- Retirement or termination benefits of an employee;
- Arrears of salary of an employee; and
- Flying and submarine allowance of certain employees.
 Income; (except self-hiring see “self-hiring” on next pages)
 Business income:
- From services rendered outside Pakistan;
- From construction contracts executed out-side Pakistan;
- Of certain manufacturers of cooking oil or vegetable ghee or both; and
- Of resident from shipping business.
 Capital gains from:
- Sale of securities; and
- Sale of shares or assets by a private limited company to Private Equity and Venture
Capital Fund. For further details, please refer to our brochure “Income subject to separate
charge, final tax and fixed tax regimes of Income Tax”.

O) Tax
 “Tax” is the amount computed by applying the applicable rate of tax, on taxable
income, income subject to a separate charge, income subject to final tax and separate
block of income subject to fixed tax.

p) Income Tax
“Income tax” payable on taxable income is:
- Gross income tax (Calculated on taxable income by applying applicable rate of income
tax); as reduced by the following:-
- Reductions in tax liability (refer to our brochure Tax Reductions, Rebates and Credits);
minus
- Foreign tax credit (refer to our brochure Tax Reductions, Rebates and Credits); minus
- Tax credits on donations, investments etc. (refer to our brochure Tax Reductions,
Rebates and Credits); minus
- Tax credit on exempt share from association of persons (refer to our brochure Tax
Reductions, Rebates and Credits).
To arrive at the net income tax payable or refundable, income tax payable determined as
above is reduced by:
 Advance tax already paid; and
 Adjustable tax paid through deduction at source. (If it is not final tax liability paid
through deduction) For further details refer to our brochures “Collection and Deduction of
Tax at Source” and “Income subject to separate charge, final tax and fixed tax regimes of
Income Tax” Agricultural Income is chargeable to tax (Agricultural Income Tax)
separately by the respective Provincial Governments and hence is specifically declared
exempt from levy of tax under the Income Tax Ordinance, 2001. Accordingly such
income does not form part of total income / taxable income.

q) Agriculture Income
“Agricultural income” is defined broadly to include direct and
indirect income from land situated in Pakistan used for agriculture purposes. Rental
income for the use of cultivated land and rent of a building on or in the vicinity of
cultivated land occupied by the cultivator or by the receiver of rental income from
cultivated land are some of the examples of indirect agriculture income. Income from
fruit or vegetable farming etc. and Sale of trees is exempt in the hands of grower as
Agriculture income. However, Income from sale of trees/vegetables or agriculture-
produce are taxable in the hands of non-growers e.g “Arthis”.

Some Important Provisions of Law which a Taxpayer should know

Obligation as a withholding Agent
Obligations as a withholding agent – refer to our brochure “Collection and Deduction of
Tax at Source”

Inadmissible deductions against income chargeable to tax:

 Payment for purchases or of salary, rent, brokerage or commission, profit on debt,
payment to non-resident, payment for services or fee from which tax is required to be
deducted and paid to state but is not deducted or paid.
 Fine or penalty paid for the violation of any law, rule or regulation;
 Personal expenditures like residential expenses, education, etc.;
 Salary paid exceeding Rs. 15,000 per month other than by a crossed cheque or direct
transfer of funds to the employee bank account;
 Expenditure of a capital nature on Depreciable Asset except depreciation and
amortization on certain specified tangible Depreciable Assets and intangible assets;
Expenditure exceeding Rs. 10,000 incurred and paid otherwise than by a crossed cheque
drawn on a bank or by crossed bank draft or crossed pay order or any other crossed
banking instrument showing transfer of amount from the business bank account of the
taxpayer. However, this does not apply to the following:
- Where expenditures under a single account head in aggregate does not exceed
Rs.50,000; - Expenditures on account of –
 Utility bills;
 Freight charges;
 Travel fare;
 Postage;
 Payment of taxes, duties, fee, fines or any other statutory obligation; and
 Purchase of agricultural produce directly from the growers of such produce.
Crossed banking instrument includes online transfer of payment from the business
account of the payer to the business account of payee as well as payments through
credit card, subject to the condition that such transactions are verifiable from the
bank statements of the respective payer and the payee.
Apportionment of expenditures – Where expenditure relates to –
 The derivation of income from more than one heads of income;
 Derivation of income comprising of taxable income and/or income subject to
separate charge and/or income subject to final tax and/or separate block of income;
or
 The derivation of income chargeable to tax under a head of income and to some
other purpose, the expenditure has to apportioned on any reasonable basis taking
account the relative nature and size of the activities to which the amount relates. Rule
 13 of the Income Tax Rules, 2002 specifies how to apportion such common
expenditures.
Obligations to furnish income tax declarations – refer to our brochure
“Obligation to file Income Tax Declarations. Tax having been deducted at source
does not absolve from filing a tax declaration or a tax return.
Loan, advance, deposit or gift received from another person otherwise than:
 By a crossed cheque drawn on a bank; or
 Through a banking transaction from a person holding a National Tax Number
Certificate;
is treated as income chargeable to tax under the head “income from other sources”.
The purpose is to document the transactions of loan, advance, deposit or gift
reflected in the books of account, wealth statement or reconciliation of wealth.
The following transactions, however, are excluded:
 Loan, advance or deposit received from a banking company or an institution
notified under the Companies Ordinance, 1984 by the Federal Government in the
official gazette as a „financial institution‟; or
 Advance payment for the sale of goods or supply of services.
Self-hiring – When an employee gives on rent any building (house/flat/apartment
etc.) owned by him or any of his/her family members to the employer and the
employer provides the same against the employee entitlement for a rent free
accommodation or housing, it results into:
 Provision of a perquisite (rent free accommodation or housing) by the employer to
the employee chargeable as income from “salary”; and
 Receipt of rent of land or building by the employee or any of his/her family
members, as the case may be, chargeable as income from “property” in the hands of
the owner.
Recouped expenditure or loss is the income of the tax year in which it is
received in cash or in kind and chargeable under the head of income where deduction
for such expenditure or loss was allowed in computing the chargeable income of an
earlier year.
Double derivations and double deductions Any amount chargeable to tax on the
basis of being receivable shall not be again chargeable on the basis that it is received
or vice versa. Similarly any expenditure deductible on the basis of being payable
shall not be again deductible on the basis that it is paid or vice versa.

Facilitation and Taxpayer Education Material available on

our website www.fbr.gov.pk
Income Tax:
 Income Tax Ordinance, 2001;
 Income Tax Rules, 2002;
 Income Tax Notifications (SRO‟s issued by the Federal Government);
  Income Tax Circulars (Clarifications issued by the Federal Board of Revenue);
 Income Tax Forms (Registration form, return forms, withholding tax statements,
tax deposit form);
 Computer Software (Withholding tax statements);
 Avoidance of Double Tax Treaties with other countries;
 Publications and brochures
Sales Tax
 Sales Tax Act, 1990;
 Sales Tax Rules, 2006;
 Sales Tax Special Procedure Rules, 2007;
 Sales Tax Special Procedure (Withholding) Rules, 2007
 Sales Tax Notifications (SRO‟s issued by the Federal Government);
 Sales Tax General Orders;
 Sales Tax Circulars/Rulings (Clarifications issued by the Federal Board of
Revenue);
 Sales Tax Forms (Registration form, return forms, tax deposit form);
 Computer Software (Refund claim);
 Publications and brochures

Federal Excise Duty

 Federal Excise Act, 2005;
 Federal Excise Rules, 2005;
 Federal Excise Notifications (SRO‟s issued by the Federal Government);
 Federal Excise General Orders;
 Federal Excise Circulars/Rulings (Clarifications issued by the Federal Board of
Revenue);
 Federal Excise Forms (Return forms);
 Publications and brochures
On line information services:
 Registration (Income Tax, Sales Tax and Federal Excise Duty);
 Registration Application Status (Income Tax and Sales Tax);
 Registered Taxpayers Verification (Income Tax and Sales Tax);
 Active taxpayers list;

Chapter No. 4
CONCLUSION AND RECOMMEDATION
In this Chapter I discussed future recommendation and conclude my overall experience about
company.
4.1 CONCLUSION
Overall experience was good and best days of learning. It was a good start to my professional
experience. The friendly attitude of the staff convinced me to work in such a dynamic
environment, where peace creatively is the key element to drive the organization toward its
success.
I learned about taxation system in Pakistan and business system, this organization has a
professional vision of doing business, so the purity that exist in its environment is enough to
impress any potential business professional. Tax Consulting (cost accounting and management)
since formation in has really come a long way and achieved a lot in this short period. The
company has a big name in its industry and has phenomenal credibility and market value. The
company operation is purely transparent and the services offered by this company are in
accordance with its business principle and corporate ethics. Over a period of 6 months the
company has really expanded into all areas of business and has formed a huge network of client
who provide taxation services to the company’s companies.

4.2 RECOMMENDATION
Company must stand out from the competition
An increase in tax regulation globalization an influx of innovation technology and a greater
demand for always on access make this an exciting time for tax and accounting professional to
be in the market.
A significant trend that is sweeping the tax professional is the rise in value-added services so
company must focus on it.
Boots company’s reputation
According to my view complete reputing-building strategies to help company gain new tax client
so:
Provide regular information on tax, accounting and business issue through posts on social media
Provides secure access to data for customer and employees through cloud application and portals
Increase your accounting company maximize visibility and searchability
Ask your customer to provide an online analysis of your company on sites like Google, Yelp and
Glassdoor and promote these glowing reviews on your website.
New technology
Company also focus on new technology like AL artificial intelligence role in taxation, apps for
taxation and online booking for clients.