20/08/2022
Taxpayers can adjust or claim refund against tax paid on motor vehicle registration, transfer or purchase.!!
FBR officials said that the tax withheld โ at the time of registration or transfer of motor vehicle under Section 231B and tax on motor vehicle under Section 234 of Income Tax Ordinance, 2001 โ is adjustable against payable liabilities or any person claim refunds if payable deducted at source.
The FBR officials said that under Section 231B a motor vehicle registration authority shall collect advance tax on private motor vehicles from persons registering new locally manufactured motor vehicles at the time of registration of new motor vehicle.
The FBR specified withholding tax for filers and non-filers, who can adjust or claim refund on filing of their returns.
Filer Non-Filer
Up to 850CC Rs10,000 Rs10,000
851CC to 1000CC Rs20,000 Rs25,000
1001CC to 1300CC Rs30,000 Rs40,000
1301CC to 1600CC Rs50,000 Rs100,000
1601CC to 1800CC Rs75,000 Rs150,000
1801CC to 2000CC Rs100,000 Rs200,000
2001CC to 2500CC Rs150,000 Rs300,000
2501CC to 3000CC Rs200,000 Rs400,000
Above 3000CC Rs250,000 Rs450,000
Similarly under Section 231B(1A), every leasing company, scheduled bank, investment bank, development finance institution shall collect 3 percent of the value of motor vehicle on leasing of motor vehicles to a non-filer at the time of lessee. The tax withheld is also adjustable.
The withholding tax rate under Section 231B(2) shall be collected by motor vehicle registration authority from person transferring the ownership / registration at the time of transfer. The tax is adjustable.
The tax rate under this section is as follow:
Filer Non-Filer
Up to 850CC 0 Rs5,000
851CC to 1000CC Rs5,000 Rs15,000
1001CC to 1300CC Rs7,500 Rs25,000
1301CC to 1600CC Rs12,500 Rs65,000
1601CC to 1800CC Rs18,750 Rs100,000
1801CC to 2000CC Rs25,000 Rs135,000
2001CC to 2500CC Rs37,500 Rs200,000
2501CC to 3000CC Rs50,000 Rs270,000
Above 3000CC Rs62,500 Rs300,000
The manufacturers of motor vehicle shall collect adjustable advance tax from purchaser at the time of sale of vehicle. The advance tax shall be as follow:
Filer Non-Filer
Up to 850CC Rs10,000 Rs10,000
851CC to 1000CC Rs20,000 Rs25,000
1001CC to 1300CC Rs30,000 Rs40,000
1301CC to 1600CC Rs50,000 Rs100,000
1601CC to 1800CC Rs75,000 Rs150,000
1801CC to 2000CC Rs100,000 Rs200,000
2001CC to 2500CC Rs150,000 Rs300,000
2501CC to 3000CC Rs200,000 Rs400,000
Above 3000CC Rs250,000 Rs450,000
Under Section 234, person collecting motor vehicle tax shall collect withholding tax from owner of motor vehicles at the time of collecting motor vehicle tax, other in installment or lump sum.
In the case of goods transport vehicles: Filers shall pay Rs2.5 per kg of the laden weight; Non-filer shall pay Rs4 per kg of the laden weight.
Under Section 234(1)(A) transport vehicle with laden weight of 8120kg or more after a period of ten years from the date of first registration, the withholding tax shall be Rs1,200 per annum.
In the case of passenger transport vehicle plying for hire, seating capacity, under Section 234(2), is as follow:
Rs per seat per annum Filer Non-Filer
4 or more persons but less than 10 persons. Rs50 Rs100
10 or more persons but less than 20 persons Rs100 Rs200
20 persons or more Rs300 Rs500
The rate of withholding tax under Section 234(3), for other private motor vehicles, including car, jeep, van sport utility vehicles, pick-up trucks for private use, caravan automobile, limousine, wagon or any other automobile used for private purpose, is as follow:
Filer Non-filer
Up to 1000CC Rs800 Rs1,200
1001CC to 1199CC Rs1,500 Rs4,000
1200CC to 1299CC Rs1,750 Rs5,000
1300CC to 1499CC Rs2,500 Rs7,500
1500CC to 1599CC Rs3,750 Rs12,000
1600CC to 1999CC Rs4,500 Rs15,000
2000CC & above Rs10,000 Rs30,000
