Executive Summary: How Our Tax Lawyers in Karachi Help
What the service is
Representation in tax disputes: replying to notices, handling audits, contesting assessments, filing appeals and references, and advising on sales tax registration and returns under both federal and Sindh law. It is dispute and compliance work, not just form filling.
Who needs it
Anyone who has received a notice from the Inland Revenue, an audit selection, an amended assessment order or a demand, and businesses that sell goods or provide services and must deal with both the FBR and the Sindh Revenue Board.
Fee basis
Fees are quoted after the documents are reviewed. A single reply to an information notice is a small task; a full audit or an appeal before the Tribunal requires much more work. We confirm the fee for each stage before we begin.
Time it usually takes
Notice replies are prepared within the deadline given, provided documents reach us in time. Audits and appeals can run for months, and hearings before appellate forums depend on their cause lists. We never promise a decision date.
How to start
Send the notice, your return for that year and any earlier correspondence on WhatsApp to +92 333 1127830. We read it the same working day and tell you the deadline, what is being asked and what we need from you.
Advocate-led since 1985
Tax matters are supervised by Mohsin Ali Shah, consulting lawyer, with Zaheer Ahmed Qazi, Advocate High Court, appearing in contested proceedings. Our wider team of about seventeen advocates includes two Advocates of the Supreme Court.
Notices Our Tax Lawyers in Karachi Handle
Information notices
Requests for documents, bank statements or explanations about a return or transaction.
Notices to file a return
Where the Commissioner requires a return from someone who has not filed.
Show-cause notices
Proposed additions, amendments or penalties that must be answered before an order is passed.
Audit selection
Selection of a return for audit and the detailed questions that follow.
Recovery notices
Demands for tax already assessed, including attachment of bank accounts.
Sales tax notices
Questions from the FBR on goods or from the SRB on services, including input tax claims.
Replying to a Notice: Why Wording Matters
A reply to a tax notice becomes part of the record and is read again at every later stage. A careless admission, a missing document or a reply filed after the deadline can decide the case before any appeal is heard. Tax Lawyers in Karachi draft replies that answer exactly what was asked, attach the evidence and preserve every legal objection.
Where more time is genuinely needed, an adjournment request should be filed before the deadline with reasons. Ignoring a notice almost always leads to an order based on whatever information the department already holds.
Audits Handled by Tax Lawyers in Karachi
The Income Tax Ordinance 2001 allows the Commissioner to select a person for audit and to examine books, records and explanations. An audit typically involves a written questionnaire, document production and meetings. The findings may lead to an amended assessment.
We prepare the file before the first meeting, reconcile bank deposits with declared income, organise expense evidence and keep a written record of everything produced. Good preparation narrows the issues and often reduces additions considerably.
Assessments and Amended Orders
A return filed under the Ordinance is generally treated as an assessment, but the Commissioner may amend it within the time limits allowed by law where income was understated or the assessment is erroneous. Before amending, the person must be given a chance to be heard through a show-cause notice. An amended order must give reasons and is appealable.
The Appeal Route Our Tax Lawyers in Karachi Follow
If an order is wrong, the appeal route under the Income Tax Ordinance 2001 runs through three levels. Each has its own time limit, so the date of receipt of the order matters.
| Stage | Forum | What it decides |
|---|---|---|
| First appeal | Commissioner Inland Revenue (Appeals) | Facts and law in the assessment or order |
| Second appeal | Appellate Tribunal Inland Revenue (ATIR) | Facts and law on appeal from the Commissioner (Appeals) |
| Reference | High Court | Questions of law arising from the Tribunal's order |
| Further | Supreme Court of Pakistan | With leave, against the High Court's decision |
Filing an appeal does not automatically stop recovery of the tax demanded. Where recovery is threatened, a stay application may be needed at the appropriate forum.
Sales Tax: FBR and SRB
Sales tax on goods (FBR)
Sales tax on the supply and import of goods is collected by the FBR under the Sales Tax Act 1990. Registered persons file monthly returns, charge tax on taxable supplies and claim input tax subject to the conditions in the Act.
Sindh sales tax on services (SRB)
Services provided in Sindh are taxed by the Sindh Revenue Board under the Sindh Sales Tax on Services Act 2011. Registration, monthly returns and withholding obligations are separate from the FBR, so a Karachi business may need to deal with both bodies.
Where Tax Lawyers in Karachi add value
Disputes often arise over whether an activity is a supply of goods or a service, which authority has the right to tax it, and whether input tax was properly claimed. These are legal questions and should be answered before returns are filed, not after a notice arrives.
Documents to Bring
- The notice or order, with the envelope or email showing the date of receipt.
- Your returns, wealth statements and sales tax returns for the period concerned.
- Bank statements, invoices, contracts and ledgers that explain the transactions questioned.
- Earlier replies, orders and appeal papers if the matter has a history.
- IRIS or SRB portal access, or authority for us to view the correspondence.
Penalties and Default Surcharge
Alongside the tax itself, the department may impose penalties for late filing, failure to keep records or failure to comply with notices, and default surcharge where tax is paid late. Each penalty is separately appealable. Penalties are not automatic in every case; the officer must follow the procedure in the law, and a reasonable explanation backed by documents can make a real difference.
Withholding Obligations for Karachi Businesses
Companies, firms and many individuals in business are required to deduct tax when they pay salaries, rent, contractors and suppliers, deposit it on time and file periodic withholding statements. A business that fails to deduct may be treated as the person liable for the tax it should have collected, together with default surcharge.
Withholding notices are among the most common we see from businesses in Karachi. We review payment records, contracts and certificates, and explain to the officer why particular payments were exempt or why tax was correctly deducted.
Bank Account Attachment and Recovery
Once tax has been assessed and is due, the department may begin recovery, which can include attaching bank accounts. Act quickly. We check whether the demand was validly created, whether notices were properly served and whether an appeal is pending, and then decide whether an application to the officer, a stay application or a petition is the appropriate remedy.
Advice Before Major Transactions
Many disputes can be avoided with advice taken in advance. Before selling property, restructuring a business, signing a large service contract or making payments abroad, ask how withholding, capital gains and sales tax will apply. A short written opinion at the planning stage usually costs far less than defending an assessment later.
Why Choose Our Tax Lawyers in Karachi
We combine tax knowledge with court experience. That matters because many tax cases are won or lost on procedure: limitation, the right to be heard, proper service of notices and the reasons given in an order. Our lawyers read every order with those points in mind before addressing the figures.
Related Tax Services
For annual returns see FBR income tax return filing in Pakistan. For income tax notices focused on individuals see income tax lawyers. For help outside Karachi see our page on tax lawyers in Pakistan.
Contact Tax Lawyers in Karachi Today
Do not wait until the last day of a deadline. WhatsApp the notice to +92 333 1127830 or visit our Gulistan-e-Jauhar or DHA Phase 7 office. Tax Lawyers in Karachi from our team will read it the same working day and tell you what to do next.
Frequently asked questions
What should I do first when I receive a tax notice?
Note the date you received it and the deadline, then read what is actually being asked. Do not reply in haste or ignore it. Send the notice to a lawyer, gather the documents requested and, if you need more time, ask for an adjournment before the deadline.
Can I appeal against an amended assessment order?
Yes. An order amending an assessment can be appealed to the Commissioner Inland Revenue (Appeals) within the time allowed by the Income Tax Ordinance 2001. Further appeals lie to the Appellate Tribunal Inland Revenue and, on questions of law, to the High Court by reference.
Does filing an appeal stop the recovery of tax?
Not automatically. The department may still try to recover the demand while the appeal is pending. Where that happens, a stay application may be filed before the appropriate forum, which will consider the facts before granting any relief.
What is the difference between FBR and SRB?
The FBR collects federal taxes, including income tax and sales tax on goods. The Sindh Revenue Board collects sales tax on services provided in Sindh under the Sindh Sales Tax on Services Act 2011. Many Karachi businesses deal with both.
Do I need to register with SRB as well as FBR?
If you provide taxable services in Sindh, SRB registration may be required in addition to your FBR registration. Whether it applies depends on the nature of the service and the thresholds in the law, which we check against your business.
How long does a tax audit take?
It varies. A simple audit may be completed in a few months, while a detailed one with many queries can take longer. Prompt, organised replies usually shorten the process. We cannot guarantee when the department will conclude.
Can you appear before the Tribunal and the High Court?
Yes. Our advocates appear before the Commissioner (Appeals), the Appellate Tribunal Inland Revenue and the Sindh High Court in tax references and constitutional petitions where appropriate. Our network also includes two Advocates of the Supreme Court.
What happens if I ignore a notice?
The officer may pass an order on the information already available, which is often unfavourable, and may impose penalties. It also weakens your position in any later appeal, because the evidence was not produced at the right stage.
How are your fees worked out?
Fees are quoted after the documents are reviewed and depend on the stage and complexity, such as a single reply, a full audit or an appeal. We confirm the fee for each stage in advance.
Can you help a business that sells goods and services?
Yes. Mixed businesses often face questions from both the FBR and the SRB about how each supply is classified. We review the business model, registrations and returns and advise on consistent treatment.
Speak to Karachi Lawyers about Tax Lawyers in Karachi
Karachi Lawyers has practised since 1985 and has about 17 advocates, including two Advocates Supreme Court. Send a WhatsApp message to +92 333 1127830 with your name, a two-line summary of the matter, any deadline or hearing date, and photos of the key documents. We will tell you what the law requires, which documents are missing and what the next step is, and fix an appointment at our Gulistan-e-Jauhar office (Mezzanine Floor, Muneer Mobile Mall, Block 17) or our DHA office (Mezzanine Floor, Main Jami Commercial, Phase 7). We explain the scope of work before you instruct us, and we never promise an outcome we cannot control.
Related services from Karachi Lawyers
Official sources
For reference only. Procedures and charges change; confirm the current position for your own case.
This page gives general information about the law in Pakistan and is not legal advice for your particular case. No outcome, timeline or fee can be guaranteed before your documents and circumstances have been reviewed.
Reviewed by: Mohsin Ali Shah, Consulting Lawyer (M.A., LL.B.)
Published by: Karachi Lawyers
Last updated: