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Revised ‘Advance Tax’ rates on motor vehicles registration, transfer of ownership notified

Revised ‘Advance Tax’ rates on motor vehicles registration, transfer of ownership notified

KARACHI: The Federal Board of Revenue (FBR) has notified revised rates of withholding tax for Section 231-B of the Income Tax Ordinance, 2001 effective from July 01, 2015.

The notification stated that ‘advance tax’ on purchase, registration and transfer of motor vehicles under Section 231B shall be collected as per the following schedule:

Advance Tax will be Rs 10, 000 for both filers and non-filers on motor vehicles having the engine capacity up to 850cc;

Advance tax will be Rs 20, 000 for filers and Rs 25,000 for non-filers on motor vehicles having engine capacity 851cc to 1000cc;

Advance tax will be Rs 30,000 for filers and Rs 40,000 for non-filers on motor vehicles having engine capacity 1001cc to 1300cc;

Advance tax will be Rs 50, 000 for filers and Rs 100,000 for non-filers on motor vehicles having engine capacity 1301cc to 1600cc;

Advance tax will be Rs 75, 000 for filers and Rs 150,000 for non-filers on motor vehicles having engine capacity 1601cc to 1800cc;

Advance tax will be Rs 100, 000 for filers and Rs 200,000 for non-filers on motor vehicles having engine capacity 1801cc to 2000cc;

Advance tax will be Rs 1,50, 000 for filers and Rs 300,000 for non-filers on motor vehicles having engine capacity 2001cc to 2500cc;

Advance tax will be Rs 200, 000 for filers and Rs 400,000 for non-filers on motor vehicles having engine capacity 2501cc to 3000cc;

Advance tax will be Rs 250, 000 for filers and Rs 450,000 for non-filers on motor vehicles having engine capacity above 3000cc.

It further said, that the rate of tax on transfer of registration or ownership of vehicles as per sub-section (2) of Section 231-B will be Rs 5,000 for non-filer and nil for filer on vehicles having engine capacity up to 850cc; Rs 5,000 for filer and Rs 15,000 for non-filer on motor vehicles having engine capacity 851cc to 1000cc; Rs 7,500 for filer and Rs 25,000 for non-filer on motor vehicles having engine capacity 1001cc to 1300cc; Rs 12,500 for filer and Rs 65,000 for non-filer on motor vehicles having engine capacity 1301cc to 1600cc; Rs 18,750 for filer and Rs 100,000 for non-filer on motor vehicles having engine capacity 1601cc to 1800cc; Rs 25,000 for filer and Rs 135,000 for non-filer on motor vehicles having engine capacity 1801cc to 2000cc; Rs 37,500 for filer and Rs 200,000 for non-filer on motor vehicles having engine capacity 2001cc to 2500cc; Rs 50,000 for filer and Rs 270,000 for non-filer on motor vehicles having engine capacity 2501cc to 3000cc and Rs 62,500 for filer and Rs 300,000 for non-filer on motor vehicles having engine capacity above 300,000.

The tax to be collected on transfer of vehicles shall be reduced by 10 percent each year from the date of first registration in Pakistan and there will be no collection of tax on transfer of vehicles after five years from the date of first registration in country.