Withholding Tax on Purchase of New Cars?

[tiptop]

I have read in a paper today about this withholding tax @ 6% on purchase of new cars. Is it a new tax ? And when it is paid, at the time of registration ?
Somebody plz shed light on it ......

[salmankhilji]

Sorry, dunno much, but I asked the Toyota dealer to give me a break down of the entire price of the new Camry. i.e. Factory Price + freight + customs duty + profit.

Altought they did not do this, they DID, however, tell me that the price of 27.5 lakhs includes 6% income tax.

HTH

[tiptop]

Any other member plz .........

[szuberi]

6% is income tax or sales tax? i thought sales tax is 15% in pakistan.

[tiptop]

It is Income tax that is received in advance and called withholding tax and received from buyers.

Sales tax is different and received from sellers.

[Khurramchauhdary]

Where to add the amount of withholding tax paid on the purchase of new car? In which tab what amout in what coloum? Detailed reply will be highly appreciated

I have read in a paper today about this withholding tax @ 6% on purchase of new cars. Is it a new tax ? And when it is paid, at the time of registration ?
Somebody plz shed light on it ......

[nifiii]

Where to add the amount of withholding tax paid on the purchase of new car? In which tab what amout in what coloum? Detailed reply will be highly appreciated

I have read in a paper today about this withholding tax @ 6% on purchase of new cars. Is it a new tax ? And when it is paid, at the time of registration ?
Somebody plz shed light on it ......

"The Finance Act 2015 amended the Section 231 B of Income Tax Ordinance, 2001 and the revised law is:
231B. Advance tax on private motor vehicles.— (1) Every motor vehicle registering authority of Excise and Taxation Department shall collect advance tax at the time of registration of a motor vehicle, at the rates specified in Division VII of Part IV of the First Schedule."

In form 114(1) of Income tax returns filed voluntarily, put the WHT amount in code 64100301.
In addition to this, you need to fill another form i.e. 165(1) [Statement of WHT filed voluntarily] and put the details in code 64100301.

[Khurramchauhdary]

Where to add the amount of withholding tax paid on the purchase of new car? In which tab what amout in what coloum? Detailed reply will be highly appreciated

I have read in a paper today about this withholding tax @ 6% on purchase of new cars. Is it a new tax ? And when it is paid, at the time of registration ?
Somebody plz shed light on it ......

"The Finance Act 2015 amended the Section 231 B of Income Tax Ordinance, 2001 and the revised law is:
231B. Advance tax on private motor vehicles.— (1) Every motor vehicle registering authority of Excise and Taxation Department shall collect advance tax at the time of registration of a motor vehicle, at the rates specified in Division VII of Part IV of the First Schedule."

In form 114(1) of Income tax returns filed voluntarily, put the WHT amount in code 64100301.
In addition to this, you need to fill another form i.e. 165(1) [Statement of WHT filed voluntarily] and put the details in code 64100301.

Thanks for your detail reply I read Income tax ordinance but just confused about where to add in iris. Is it mandatory to file 165 along with 114 or only 114 is enough if yes then for which period need to file 165? Whole year or just specific period when paid advance tax and which one to file first among both? Today I filled 114b to take permission for the revision once it will granted I will be able to file revised income tax returns. One more thing to ask if there is any place where I can add that I sold my old car and bought new one. I just deleted my previous car and added the new one am I did right?

[nifiii]

Where to add the amount of withholding tax paid on the purchase of new car? In which tab what amout in what coloum? Detailed reply will be highly appreciated

I have read in a paper today about this withholding tax @ 6% on purchase of new cars. Is it a new tax ? And when it is paid, at the time of registration ?
Somebody plz shed light on it ......

"The Finance Act 2015 amended the Section 231 B of Income Tax Ordinance, 2001 and the revised law is:
231B. Advance tax on private motor vehicles.— (1) Every motor vehicle registering authority of Excise and Taxation Department shall collect advance tax at the time of registration of a motor vehicle, at the rates specified in Division VII of Part IV of the First Schedule."

In form 114(1) of Income tax returns filed voluntarily, put the WHT amount in code 64100301.
In addition to this, you need to fill another form i.e. 165(1) [Statement of WHT filed voluntarily] and put the details in code 64100301.

Thanks for your detail reply I read Income tax ordinance but just confused about where to add in iris. Is it mandatory to file 165 along with 114 or only 114 is enough if yes then for which period need to file 165? Whole year or just specific period when paid advance tax and which one to file first among both? Today I filled 114b to take permission for the revision once it will granted I will be able to file revised income tax returns. One more thing to ask if there is any place where I can add that I sold my old car and bought new one. I just deleted my previous car and added the new one am I did right?

If you purchased the car after 1st July 2016, then you don't need to file it right now brother. Tax year 2016 ka period 01-07-2015 se 30-06-2016 tha. You don't need to do anything right now. Jab is saal (2017) ka tax return jama karao ge to usme ye include karna. First file Income Tax Return 114(a), then the Wealth statement and after that file 165(1).
And you would be required to file it for the whole year, not the specific period.
For the old and new car, you need to include that in your wealth statement. There is a tab where you have to mention the gain/loss on sale/purchase of an asset. You have to enter it there. If you require the exact codes to where to enter the value then tell me, I'll tell you the details.

[Khurramchauhdary]

Where to add the amount of withholding tax paid on the purchase of new car? In which tab what amout in what coloum? Detailed reply will be highly appreciated

I have read in a paper today about this withholding tax @ 6% on purchase of new cars. Is it a new tax ? And when it is paid, at the time of registration ?
Somebody plz shed light on it ......

"The Finance Act 2015 amended the Section 231 B of Income Tax Ordinance, 2001 and the revised law is:
231B. Advance tax on private motor vehicles.— (1) Every motor vehicle registering authority of Excise and Taxation Department shall collect advance tax at the time of registration of a motor vehicle, at the rates specified in Division VII of Part IV of the First Schedule."

In form 114(1) of Income tax returns filed voluntarily, put the WHT amount in code 64100301.
In addition to this, you need to fill another form i.e. 165(1) [Statement of WHT filed voluntarily] and put the details in code 64100301.

Thanks for your detail reply I read Income tax ordinance but just confused about where to add in iris. Is it mandatory to file 165 along with 114 or only 114 is enough if yes then for which period need to file 165? Whole year or just specific period when paid advance tax and which one to file first among both? Today I filled 114b to take permission for the revision once it will granted I will be able to file revised income tax returns. One more thing to ask if there is any place where I can add that I sold my old car and bought new one. I just deleted my previous car and added the new one am I did right?

If you purchased the car after 1st July 2016, then you don't need to file it right now brother. Tax year 2016 ka period 01-07-2015 se 30-06-2016 tha. You don't need to do anything right now. Jab is saal (2017) ka tax return jama karao ge to usme ye include karna. First file Income Tax Return 114(a), then the Wealth statement and after that file 165(1).
And you would be required to file it for the whole year, not the specific period.
For the old and new car, you need to include that in your wealth statement. There is a tab where you have to mention the gain/loss on sale/purchase of an asset. You have to enter it there. If you require the exact codes to where to enter the value then tell me, I'll tell you the details.

Thanks for detail reply but I knew the basics as I am filling my returns myself since 2014. Car was purchased in feb 2016 and registered in march 2016 so I filled the returns in july from july 15 to june 16 but I missed to mentioned withholding tax because I thought I can only claim income tax and this 30k was the part of registration fee which were charged as withholding in advance but nothing to do with it in returns but few day back I seen on the forum that people were talking about it so I asked about it I did some research... and yes your response is very much appriciated. I already mentioned about the profit on car in wealth statement but nothing found in 114 and now to revise I submitted the required form... will ask you if found any trouble or in need of any info. Thanks again