KARACHI: Motor vehicle manufacturers and dealers have shared details of Computerized National Identity Card (CNIC) of buyers with the Federal Board of Revenue (FBR), sources said on Monday.
The sources said that the FBR has received the information of buyers who made purchases during first half (July – December) of current fiscal year.
Besides manufacturers and dealers of motor vehicles, registration authorities, banks and leasing company have also provided details of buyers for the period.
The FBR gets details of purchasers, included: name and address of purchaser/lessee; NTN/CNIC of purchaser/lessee; registration of number of motor vehicle; motor vehicle make, model, engine capacity; year of manufacture; date of first registration of the vehicles in Pakistan; registered capacity/laden weight of the vehicle; and ex-factor price of motor vehicle.
The withholding agents as defined above are liable to collect withholding tax under Section 231B of the Income Tax Ordinance, 2001.
As per Section 231 of the Ordinance, every motor vehicle registering authority of Excise and Taxation Department shall collect advance tax at the time of registration of a motor vehicle.
Further, every leasing company or a scheduled bank or non-banking financial institution or an investment bank or a modaraba or a development finance institution, whether sharia compliant or under conventional mode, also require to collect withholding tax at the time of leasing of motor vehicle.
The FBR sources said that huge undeclared money was used for purchase of motor vehicles. Therefore, the FBR will identify persons on the basis of information received, who are not in the tax net.
As per Section 114 of the Income Tax Ordinance, 2001 every person own 1000CC and above motor vehicles are required to file annual income tax return.