With holding tax rates as per tax ordinance applicable for the year 2009-10 are as follows:
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the section of tax ordinance applicable is as follow:
[at the time of] collecting
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[Tax on motor vehicles].-
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(1) Any person
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234.
motor vehicle tax shall also collect advance tax at the rates specified in Part IV of
the First Schedule.
(2) If the motor vehicle tax is collected in instalments, the advance tax may
also be collected in instalments in like manner.
(2A) In respect of motor cars used for more than ten years in Pakistan, no
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Hence there is no confusion we are bound to pay this withholding tax.
However for all those people who are tax payers they can claim refund or adjust this advance tax and so their registration fee will be reduced to Rs.348 or Rs.384 whatever.
regards,