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Capital Value Tax Rules, 1990

The Capital Value Tax Rules were originally made vide Notification No. SRO 755(I)/89, dated 30th June 1989 and were subsequently superseded by new Rules made vide CBR’s Notification No. SRO 741(I)/90, dated 8th July, 1990, the text of which is as follows:-

In exercise of the powers conferred by sub-section (9) of section 7 of the Finance Act, 1989 (V of 1989), the Central Board of Revenue is pleased to make the following provisions, namely:-

PART I
PRELIMINARY

1. Short title and commencement.--- (1) These rules may be called the capital Value Tax Rules, 1990.
(2) They shall come into force at once.

2. Definitions.--- (1) In these rules, unless there is anything repugnant in the subject or context,---
(i) "assessee" has the same meaning as in clause (6) of section 2 of the Income Tax Ordinance, 1979 (XXXI of 1979);
(ii) "Central Board of Revenue" means the Central Board of Revenue constituted under the Central Board of Revenue Act, 1924 (IV of 1924);
(iii) "manufacturer" includes an assembler of motor vehicles;
(iv) "National Tax Number" means the number assigned to an assessee borne on national tax register of the Income Tax Department;
(v) "person" has the same meaning as in clause (32) of section 2 of the Income Tax Ordinance, 1979 (XXXI of 1979);
(vi) "registering or attesting the transfer of the asset" includes the first registration of the asset;
xxxxxxxxxxxx
(viii) "section" and "sub-section" mean the section and sub-section, respectively, of the Finance Act, 1989 (V of 1989); and
(ix) "tax" means the capital value tax and includes any penalty, fee or other charges or any sum or amount leviable or payable under these rules.

(2) All words and expressions used in these rules but not defined shall have the same meaning as in the Income Tax Ordinance, 1979 (XXXI of 1979).

PART II
PROCEDURE FOR LEVY AND COLLECTION OF CAPITAL VALUE TAX

3. Application for registration or purchase of an asset or air tickets.--- (1) whenever an individual, and association of persons, a firm or a company acquires or purchases an asset or a right to use thereof for more than twenty years from any person or purchases an air ticket for foreign travel, he or it, as the case may be, shall apply to the registration authority, manufacturer of other vehicles or seller of air tickets in the manner specified in rule 11 for registering or attesting the transfer of asset, effecting sale of motor vehicle or an air ticket for foreign travel.

(2) The registration authority, manufacturer or seller shall satisfy himself that the particulars furnished in the application form are correct and complete.

4. Collection of capital value tax. (1) If the purchaser or the transferee does not furnish a photo copy of his National Tax Number Certificate or National Tax Number Card, the registration authority, manufacturer of motor vehicles or, as the case may be, seller of air tickets shall require him to pay the amount of Capital Value Tax as required under sub-section (1) of section 7.

(2) The tax required to be collected by the registration authority , manufacturer or, as the case may be, seller shall be credited to the Federal Government through a challan in the form set out in rule 11.

xxxxxxxxxxxx

4A. Deposit of Capital Value Tax.--- All sums being Capital Value Tax on immovable properties and motor vehicles collected under section 7 of the Finance Act, 1989, shall be paid to the credit of the Federal Government on the same day in case these have been collected by or on behalf of government. In other cases, such amount shall be paid within one week from the date of such collection. Such amounts shall be paid to the credit of the Federal Government by remittance into the government treasury or in the authorized branch of the State Bank of Pakistan or the National Bank of Pakistan:

Provided that an airline, selling air tickets for foreign air travel, shall deposit the sum of Capital Value Tax collected on sale of such air tickets within a period of sixty days, and the airline shall furnish monthly statement to the respective Commissioner of Income Tax having jurisdiction in the following format.---

AGENTS TICKET SALES REPORT

Complete and forward on original and duplicate of the form

INTERNATIONAL/DOMESTIC
(Cross out which is not applicable)

Agent’s Name and Address______________________________
Period covered
Form
To

1

2

3

4

5

6

7

8

 

Document

Number Sector

Cross Fare

N.T.N.

NIC NO. Passport

XXX COM

% age

NET

214

CK/D

             

 

 

9

 

10

11

12

13

Commission

Net Value

ADD TAXES

Total to PIA

Remarks

5%

9%

 

CVT

CED

FTT

APT

UXT

   

xxxxx
xxxxx

7. Registration or attestation of transfer, etc.--- (1) The registration authority, manufacturer or, as the case may be, seller shall register or attest the transfer of the asset or the right to use thereof after:---

(i) the tax has been collected under rule 4 or the purchaser or the transferee, as the case may be, has furnished his National Tax Number Certificate or National Tax Number Card in the manner specified in rule 11; and

(ii) the entries in the Form set out in rule 11 have been made and attested by such authority, manufacturer or seller, as the case may be.

(2) After registering or attesting the transfer or effecting the sale as required under sub-rule (1), a copy of application referred to in rule 11 shall be returned to the purchaser or transferee, as the case may be.

PART III
CAPITAL VALUE TAX RECOVERY AND REFUND RULES

8. Collection of tax from defaulter.--- (1) Where for any reason, the capital value tax is not collected under rule 4 xxxxx, the Deputy Commissioner of Wealth Tax appointed under the Wealth-tax Act, 1963 (XV of 1963) and having jurisdiction over the case of the purchaser or transfer, may declare the registration authority, manufacturer, purchaser or the transferee, as the assessee in default and proceed to collect the tax as an officer designated under sub-section (7) of section 7 by the Central Board of Revenue in this behalf.

(2) Where the tax is to be recovered from an assessee in default, it shall be so recovered as if it were the tax due in consequence of an order passed under the Wealth Tax Act, 1963 (XV of 1963), and the provisions of section 30, 31 and 32 of the said Act shall apply accordingly.

9. Application of the Wealth-tax Recovery Rules.---
The Wealth-tax Recovery Rules, 1985, shall apply to the recovery of arrears of the capital value tax as they apply to the recovery of arrears of wealth-tax.

10. Payment of refund.--- (1) Where the tax has been recovered from an individual, an association of persons, a firm or a company not liable to pay the same or in excess of the amount actually payable, an application may, in writing, be made to the Deputy Commissioner of Wealth Tax for the refund of tax, or the amount recovered in excess, as the case may be.

(2) The Deputy Commissioner of Wealth Tax may, for verification of the claim of the applicant for refund of tax, call for such particulars, documents or evidence as he may deem appropriate.

(3) Where the Deputy Commissioner of Wealth Tax is satisfied that the applicant was not liable to pay the tax or the tax has been recovered in excess of the amount actually payable, he shall, by an order in writing, refund the tax, or the amount recovered in excess, as the case may be, to the applicant.

(4) Any refund made under this rule shall not absolve the applicant to pay the tax if, at any time, it is found that he was liable to pay the tax or the amount refunded to him should have not been refunded.

(5) In the case of Capital Value Tax paid on purchase of air tickets on foreign travel, the travel agent issuing such ticket shall be allowed to make refund in genuine cases and adjust and same against the capital value tax payable through the principal airline.

PART IV
PRESCRIBED FORMS AND STATEMENTS

11. Application forms for registration of assets and purchase of motor vehicles.--- The application referred to in rule 3, shall be made in the quadruplicate, respectively in forms CVT-1 and CVT-2 set out below, to the registration authority manufacturer of motor vehicles, as the case may be, and shall be accompanied by the documents and verified in the manner specified therein, alongwith a photocopy of the National Tax Number Certificate or National Tax Number Card.

APPLICATION OF REGISTRATION AUTHORITY FOR THE
PURCHASE OF IMMOVABLE PROPERTY

ORIGINAL: FOR WEALTH TAX OFFICER
To be filled in quadruplicate

(TO BE FILLED IN BY THE PURCHASER)
PARTICULARS OF PURCHASER

(a) Name....................................................................................
(b) Address................................................................................

(c) National Tax Number.

‚ ‚ ‚ ‚ ‚ ‚ ‚ ‚ ‚ ‚ ‚ ‚ ‚

(attach photocopy of NTN Certificate/Card)

VERIFICATION

I/We solemnly declare that the particulars given in this application are correct and complete to the best of my knowledge and belief and that nothing has been concealed.

Place................................................
Date.................................................

Signature of the.....................................
Purchaser/Authorised representative

I.D. Card/Reg./Inc. No.

‚ ‚ ‚ ‚ ‚ ‚ ‚ ‚ ‚ ‚ ‚ ‚ ‚

(Please attach photocopy)

[TO BE FILLED IN BY THE SELLER]

PARTICULARS OF SELLER

(a) Name.............................................................................................
(b) Address.........................................................................................

(c) National Tax Number, if any:

‚ ‚ ‚ ‚ ‚ ‚ ‚ ‚ ‚ ‚ ‚ ‚ ‚

(attach photocopy of NTN Certificate/Card}

VERIFICATION
I/We solemnly declare that the particulars in this application are correct and complete to the best of my knowledge and belief and that nothing has been concealed.

Place................................................ Signature of the.....................................
Date................................................. seller/Authorised representative
I.D. Card/Reg./Inc. No.

‚ ‚ ‚ ‚ ‚ ‚ ‚ ‚ ‚ ‚ ‚ ‚ ‚

(Please attach photocopy)

PAYMENT DETAILS
CAPITAL VALUE TAX: Rs. ‚ ‚ ‚ ‚ ‚ ‚ ‚ ‚ ‚ ‚ ‚ ‚ ‚

AMOUNT IN WORDS Rupees

Received payment as per details above

Treasury Challan No. Official Stamp DATE
Day Month Year
Treasury Officer/ Authorised Bank

 

‚ Treasury ‚ State Bank of Pakistan ------Bank ‚ Branch code

accompanied by the documents and verified in the manner specified therein ; and bearing the following endorsement from the concerned Deputy Commissioner of Income Tax, or Assistant Commissioner of Income Tax or Income Tax Officer:

Certified that Mr./Mrs./Miss/M/s......................................................has paid the tax amounting to Rs.....................in respect of immediately preceding Assessment Year 19______________.

TO BE FILED IN BY REGISTRATION AUTHORITY

PARTICULARS OF ASSET
(a) Identification and Location of property...........................................
(b) Area of the property.......................................................................
(c) As determined for the purposes of Stamp Duty: Rs......................
(d) As declared by transfer, where Stamp Duty is not chargeable. Rs....................................

TAX DETAILS
Date of Sale................................Value Rs....................................
Capital Value Tax Rate..............................Rs...........................
Transfer Registered at S. No..........of Register No........of the
Financial year.................. on (date).........................................
Registration No.................

Official seal of Registration

Name and signature of Registration Authority

Form No. CVT-I
RATES OF CVT
Percentage of the Capital Value

(For Non-Taxpayer)

(For Taxpayer)

Immovable property (other than residential plots of land area upto 240 square yards and flats and apartments with covered area less than 1500 sq. feet)
Situated in:
(i) Urban area i.e. area falling within the limits of metropolitan corporation, municipal corporation, municipal committee, town committee, cantonment board or the Islamabad Capital Territory: 5% Nil
(ii) Areas between the outer limits of urban areas and the following: 5% Nil
(a) in case of Karachi, upto 40 kilometers from the municipal or cantonment limits: 5% Nil
(b) in case of Lahore, upto 30 kilometers from the municipal or cantonment limits:
(c) in other cases, upto 10 kilometers from the existing limits of municipal bodies or cantonment boards:

Agricultural land with value of Rs. 200,000 and above, situated in areas other than those specified above.

APPLICATION OF REGISTRATION AUTHORITY FOR THE
PURCHASE OF MOTOR VEHICLE

ORIGINAL: FOR WEALTH TAX OFFICER
To be filled in quadruplicate

[TO BE FILLED IN BY THE PURCHASER]

PARTICULARS OF PURCHASER
(a) Name..............................................................................
(b) Address at which the vehicle is to be registered......................
(c) Permanent residential address (if different from above)..............

(c) National Tax Number, if any:

‚ ‚ ‚ ‚ ‚ ‚ ‚ ‚ ‚ ‚ ‚ ‚ ‚

(attach photocopy of NTN Certificate/Card)

VERIFICATION

I/We solemnly declare that the particulars given in this applications are correct and complete to the best of my knowledge and belief and that nothing has been concealed.

Place........................................... Signature of the....................................
Date............................................ Purchaser/Authorised representative
I.D. Card/Reg./Inc. No.

‚ ‚ ‚ ‚ ‚ ‚ ‚ ‚ ‚ ‚ ‚ ‚ ‚

(Please attach photocopy)

[TO BE FILLED IN BY THE SELLER/MANUFACTURER]

PARTICULARS OF SELLER/MANUFACTURER
(a) Name...................................................................................
(b) Address..............................................................................

(c) National Tax Number, if any:

‚ ‚ ‚ ‚ ‚ ‚ ‚ ‚ ‚ ‚ ‚ ‚ ‚

(attach photocopy of NTN Certificate/card)

PARTICULARS OF MOTOR VEHICLE

Type of motor vehicle......................................... Engine Number........................................
Make............................................ Chasis Number.......................................
Engine capacity..................................... Registration No. (if already exists).......
Price charged by manufacturer in Pakistan Date of last registration & authority
Rs. (attach copies of documents Price charged by seller: Rs...............................

VERIFICATION
I/We solemnly declare that the particulars given in this applications are correct and complete to the best of my knowledge and belief and that nothing has been concealed.

Place.................................................... Signature of the.....................................
Date..................................................... Purchaser/Authorised representative
I.D. Card/Inc. No.

‚ ‚ ‚ ‚ ‚ ‚ ‚ ‚ ‚ ‚ ‚ ‚ ‚

(Please attach photocopy)

PAYMENT DETAILS
CAPITAL VALUE TAX: Rs. ‚ ‚ ‚ ‚ ‚ ‚ ‚ ‚ ‚ ‚ ‚ ‚ ‚

AMOUNT IN WORDS Rupees

Received payment as per details above

Treasury Challan No. Official Stamp DATE
Day Month Year
Treasury Officer/Authorised Bank
Treasury State Bank of Pakistan____Bank Branch code

TO BE FILLED IN BY REGISTRATION AUTHORITY

TAX DETAILS

Date of Sale/Import...................Value Rs.................
Value Rs........................CVT Rate...............Rs.............
Transfer registered at S. No.......of Registrar No..........of the
Registration No. allotted...........................................

Official seal of Registration

Name and signature of Registration Authority

RATES OF CVT
Percentage of the Capital Value

 

(For Non-Taxpayer)

(For Taxpayer)

Motor vehicles, except three wheelers and those with engine capacity upto 800CC:
(i) other than those previously used in Pakistan

5%

Nil

(ii) previously used in Pakistan, where the period between the first registration and the date of any subsequent registration is

2.5%

Nil

(a) less than 5 years;    
(b) 5 years or more but less than 10 years

1.25%

Nil

(c) 10 years or more

Nil

Nil

(The above charges are not applicable to persons who are Income Tax Certificate/Card holders).

In addition to CVT payable as above, a further amount of CVT shall also be payable on purchase of new cars, jeeps, double cabin pick-ups and station wagons, at the following rates:

Motor vehicle of an engine capacity

in the case of non-tax payer

in the case tax-payer

(i) not exceeding 1000 c.c. 2.5% ad val. Nil
(ii) exceeding 1000 c.c. but not exceeding 1300 c.c. 5% ad val. 2% ad val
(iii) exceeding 1300 c.c. but no exceeding 1600 c.c. 7.5% ad val. 4% ad val
(iv) exceeding 1600 c.c. 10% ad val. 6% ad val;]


12. Application form for purchase of motor vehicle.-- The application referred to in rule 5 shall be made in quadruplicate in Form B, set out below, to the manufacturer of motor vehicles and shall be accompanied by the documents and verified in the manner specified therein ; and bearing following endorsement from the concerned Deputy Commissioner of Income Tax, Assistant Commissioner of Income Tax or Income Tax Officer:

Certified that Mr./Mrs./Miss/M/s...........................................................................................has paid the tax amounting to Rs.........................in respect of immediately preceding assessment year 19______________.]

Form "B"
(See rule 12)
(To be filled in quadruplicate)

Copy 1 and 2: For the Deputy Commissioner of Wealth Tax.
Copy 3: For the applicant.
Copy 4: Office copy.

Application for the purchase of motor vehicle
PARTICULARS OF PURCHASER

(To be filled in by the purchaser)

(a) Name and Address............................................................
(b) Profession/Business .......................................................
(c) Permanent Residential address .......................................
(d) National Tax Number, if any:- ‚ ‚ ‚ ‚ ‚ ‚ ‚ ‚ ‚ ‚ ‚ ‚ ‚
(e) Income Tax Circle/Zone in which assessed............................

VERIFICATION
I solemnly declare that to the best of my knowledge and belief, the particulars given in this application are correct and complete and that nothing has been concealed by me.

(------------------- )
Signature of purchaser/transferee
Place:_____________________
Date:_____________________
I.D. Card No‚ ‚ ‚ ‚ ‚ ‚ ‚ ‚ ‚ ‚ ‚ ‚ ‚
(Please attach photocopy of Identity Card)

PARTICULARS OF MOTOR VEHICLE AND TAX COLLECTED
(To be filled in by the manufacturer)

Type of motor vehicle
Make
Model
Engine Number
Chasis Number
Date of sale
Sale Price: Rs.
Capital value tax collection @ 5% of sale price: Rs.
(Paid in Treasury/State Bank/Authorised Bank)
vide Challan No._______________dated_________)
Name and address of the manufacturer.

Name and designation of the person making
delivery of the motor vehicle.

*Motor vehicle means a vehicle (not plying for hire) with engine capacity exceeding 800 CC to be purchased from a manufacturer in Pakistan.

PART V
MISCELLANEOUS

13. Coordination.--- (1) The copies of the applications Form CVT-I and Form CVT-2 in duplicate shall, in cases where transfer of asset was completed or sale was effected, be periodically collected from the office of registration authority, manufacturers and sellers by the Deputy Commissioner of Wealth Tax having jurisdiction or by a person duly authorised by him in this behalf.

(2) The information in the application Form CVT-I and Form CVT-2 shall be collected and disseminated by the Deputy Commissioner of Wealth Tax to the offices concerned.

14. Relaxation.---
The Central Board of Revenue may, in any case for reasons to be recorded in writing, relax all or any of the provisions of these rules.

15. Repeal of Capital Value Tax Rules, 1989.---
The Capital Value Tax Rules, 1989, are hereby repealed:

Provided that all instructions and orders issued under the provisions of those Rules, if not inconsistent with these rules, shall continue in force.


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