Analysis of VAT collection, distribution, and audit of B-Trac Technologies Ltd.

Abstract

This internship report provides an overview of BTTL’s VAT recording, collection, and distribution related activities and how they are impacting the company's performance. The report analyzes the company's VAT related approaches, audit reports, SROs provided by the NBR. The research methodology involved primary and secondary research. The findings reveal that BTTL’s VAT related approaches are well organized, they practice VAT as per as described in the SRO’s both for their imported products and the products they sell into the market. Significantly, they are allowed to claim a refund from the money they have paid at the import Stage (Which is claimable on AT). The report also recommends that the VAT audit and investigation plays a vital role in preventing unethical practices. Due to supervision of custom officers, it is quite clinically evaluated whether the VAT-payers are obeying all the SRO’s and regulations which are provided especially by the NBR. Overall, the report concludes that managing all the regulatory orders and documentation of VAT in different books is crucial for BTTL. Prominently, they are well ahead in the management of this complexity. In every financial year there come numerous changes in the SROs like new exemptions or non-exemption on the products, changes of rates on different stages of business activities, regulatory ordinance on AT refund and other changes or addition of laws. To avoid any mistakes in the documentation, it is equally important for the respective personnel to include these changes along with the instructions provided by NBR.