Federal Board of Revenue (FBR) has recently updated the Withholding tax rates on any vehicle registration and for transfer of vehicles for the year 2020-21 from 30th of june, 2020.
Withholding tax under Section 231B:
The withholding tax rate under section 231B for private vehicles is that withholding tax shall be collected by vehicle registration authority when purchasing newly manufactured vehicle at that time when vehicle is transferred to the person who is purchasing the vehicle.
For the person not appearing on Active Taxpayer List (ATL) , the withholding tax shall be increased to 100% for that person.
Here is the list of Withholding tax rates under the Section 231B:
| Engine Capacity | For ATL | For Non-ATL |
| Up to 850CC | Rs7,500 | Rs15,000 |
| 851CC to 1000CC | Rs15,000 | Rs30,000 |
| 1001CC to 1300CC | Rs25,000 | Rs50,000 |
| 1301CC to 1600CC | Rs50,000 | Rs100,000 |
| 1601CC to 1800CC | Rs75,000 | Rs150,000 |
| 1801CC to 2000CC | Rs100,000 | Rs200,000 |
| 2001CC to 2500CC | Rs150,000 | Rs300,000 |
| 2501CC to 3000CC | Rs200,000 | Rs400,000 |
| Above 3000CC | Rs250,000 | Rs500,000 |
Also Check: Vehicle Verification in Pakistan
Withholding tax rates under Section 231B (2):
According to Section 231B(2), Vehicle Registration Authority will collect withholding tax from the person who is transferring his ownership/registration when vehicle is being transferred.
The withholding tax rate under this section shall be as:
| Engine Capacity | For ATL | For Non-ATL |
| Up to 850CC | Rs0 | Rs0 |
| 851CC to 1000CC | Rs5,000 | Rs10,000 |
| 1001CC to 1300CC | Rs7,500 | Rs15,000 |
| 1301CC to 1600CC | Rs12,500 | Rs25,000 |
| 1601CC to 1800CC | Rs18,750 | Rs37,500 |
| 1801CC to 2000CC | Rs25,000 | Rs50,000 |
| 2001CC to 2500CC | Rs37,500 | Rs75,000 |
| 2501CC to 3000CC | Rs50,000 | Rs100,000 |
| Above 3000CC | Rs62,500 | Rs125,000 |
Withholding tax rates under Section 231B (3):
When a person is purchasing vehicle, withholding tax shall be collected by manufacturer of vehicle at the time of sale of vehicle. Withholding tax shall be adjustable to tax liability.
Under Division VII, Part IV of First Schedule of the Income Tax Ordinance, 200, withholding tax rates are as:
| Engine Capacity | For ATL | For Non-ATL |
| Up to 850CC | Rs7,500 | Rs15,000 |
| 851CC to 1000CC | Rs15,000 | Rs30,000 |
| 1001CC to 1300CC | Rs25,000 | Rs50,000 |
| 1301CC to 1600CC | Rs50,000 | Rs100,000 |
| 1601CC to 1800CC | Rs75,000 | Rs150,000 |
| 1801CC to 2000CC | Rs100,000 | Rs200,000 |
| 2001CC to 2500CC | Rs150,000 | Rs300,000 |
| 2501CC to 3000CC | Rs200,000 | Rs400,000 |
| Above 3000CC | Rs250,000 | Rs500,000 |
One response to “Withholding Tax on Vehicle Registration and Transfer”
What is the income tax mentioned on Token Tax payment slip? Is it refundable thru tax return?