Withholding tax up to Rs200,000 imposed on sales of new car within 90 days

Withholding tax up to Rs200,000 imposed on sales of a new car within 90 days

ISLAMABAD: The Federal Board of Revenue (FBR) has obligatory up to Rs200,000 as income tax on the sale of motor cars at intervals ninety days of 1st registration, sources same on Mon.

The income tax has been obligatory until the Gregorian calendar month thirty, 2021. The revenue generation live has been taken to discourage the trend of ‘on money’.

Following withholding tax rates are obligatory on motor vehicles:

01. the rate at Rs50,000 has been obligatory on sale of up to 1000CC cars.

02. the rate at Rs100,000 has been obligatory on the sale of cars between 1000CC and 2000CC.

03. rate up to Rs200,000 has been obligatory on cars with an engine capability of 2000CC and higher than.

To use the rates associate degree change to Section 231B of taxation Ordinance, 2001 has been created.

Following is that the text of the amendment:

“Every car registration authority of Excise and Taxation Department shall collect advance tax from the patrons of domestically factory-made cars UN agency after selling it at intervals ninety days of delivery of such vehicle whether or not before or when registration.”

The FBR same that no assortment of the income tax underneath the new change would be created when Gregorian calendar month thirty, 2021.