CAPITAL VALUE TAX RULES, 1990
[Gazette of Pakistan, 18th July, 1990]
S.R.O. 741(1)/90.‑‑1n exercise of the powers conferred by subsection (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:‑‑
- **Short title and commencement.‑‑(l)**These rules may be called the Capital Value Tax Rules, 1990.
(2) They shall come into force at once.
- **Definition.‑‑(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 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;
(vii) "registration authority" includes the person responsible for registering or attesting the transfer of the asset or of the right to use thereof for more than twenty years;
(viii) "section" and "subsection" mean the section and subsection, respectively, of the Finance Act, 1989 (V of 1989); and
(ix) "tax" means the capital value tax and includes any penalty, fee or other charge 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).
PROCEDURE FOR LEVY AND COLLECTION OF CAPITAL VALUE TAX
- Application for registration of the asset:‑(1) Whenever an individual, an association of persons, a firm or a company acquires by purchase an asset or a right to use thereof for more than twenty years from any person, he or it, as the case may be, shall apply to the registration authority in the manner specified in rule 11 for registering or attesting the transfer of the asset.
(2) The registration authority shall satisfy himself that the particulars furnished in the application form are complete and correct.
- Collection of capital value tax.‑‑(1) If the purchaser or the transferee does not furnish his National Tax Number, the registration authority shall require him to pay the amount of capital value tax as required under subsection (1) of section 7.
(2) The tax required to be collected by the registration authority under subsection (.l) of section 7 shall he credited to the Federal Government through a challan in the form set out below:‑‑
- **Application for purchase of motor vehicle from a manufacturer.‑‑(l)**Whenever a person intends to purchase a motor vehicle from a manufacturer in Pakistan he shall apply to the said manufacturer in the manner specified in rule 12.
(2) The manufacturer shall satisfy himself that the particulars furnished in the application form are complete and correct.
- Collection of **capital value tax by the manufacturer.‑‑(l)**If the purchaser does not disclose his National Tax Number in the application for purchase of motor vehicle, the manufacturer shall collect capital value tax before making the delivery of the motor vehicle.
(2) The tax required to be collected by the manufacturer under subsection (4) of section 7 shall be credited to the Federal Government through the form specified in rule 4.
- Registration or attestation of transfer.‑‑(1) The registration authority 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 rule 6 or the purchaser or the transferee, as the case may be, has furnished his National Tax Number; and
(ii) the entries in the form set out in rule 11 have been made and attested by the said authority.
(2) After registering or attesting the transfer as required under sub‑rule (1), a copy of the application shall be returned to the purchaser or transferee, as the case may be.
CAPITAL VALUE TAX RECOVERY AND REFUND RULES
- Collection of tax from defaulter.‑‑(]) Where for any reason, the capital value tax is not collected under rule 4 or rule 6, the Wealth‑tax Officer appointed under the Wealth‑tax Act, 1963 (XV of 1963), and having jurisdiction over the case of the purchaser or transferee, 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 subsection (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 sections 30, 31 and 32 of the said Act shall apply accordingly.
Application of theWealth‑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.
Paymentof refund.‑‑(1) Where the tax has been recovered from an individual, as 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 Wealth‑tax Officer for the refund of the tax, or the amount recovered in excess, as the case may be.
(2) The Wealth‑tax Officer 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 Wealth‑tax Officer 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.
PART I V
PRESCRIBED FORMS AND STATEMENTS
- Application form for registration.‑‑The application referred to in rule 3 shall be made in quadruplicate in Form A, set out below, to the registration authority and shall be accompanied by the documents and verified in the manner specified therein.
(See rule 11)
(To be filled in quadruplicate)
Copy 1 and Z: For the Wealth‑tax Office
Copy 3: For the applicant.
Copy 4: Office Copy
Application to registration Authority for the purposes of Capital Value Tax
(To be filled in by purchaser/seller)
- Application form for purchase of motor vehicle.‑‑‑The application referred to in rule 5 shall be made is 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.
(See rule 12)
Copy 1 and 2: For the Wealth‑tax Officer.,
++Application for the purchase of motor vehicle++‑. .
++PARTICULARS OF PURCHASER++
(To be filled in by the purchaser)
(a) Name and address
(c) Permanent residential address
(d) National tax number, if any:‑‑
(e) Income tax Circle/Zone in which assessed ...................................................
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 the Purchaser Place Date I.D.Card No.
++PARTICULARS OF MOTOR VEHICLE AND TAX COLLECTED++
(To be Filled in by the manufacturer)
Type of motor vehicle ....................
Chasis Number ..................................................................................................
Date of sale ............................................................ ................................
Sale price: Rs ............................................................
Capital value tax collection Cie 5% of sale
Price: Rs .........................................................
(Paid in Treasury/State Bank/Authorised Bank
vide Challan No. dated
Name and address Name and designation
of the manufacturer‑ 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.
- Coordination.‑‑(I) The copies of the application form (Form A) in duplicate, in cases where transfer of the asset was completed, shall be periodically collected from the office of registration authority by the Wealth‑tax Officer of the area or by a person duly authorised by him in this behalf.
(2) The copies of the application form (Form B) in duplicate in cases where delivery of the motor vehicle was made, shall be periodically collected from the manufacturer by the Wealth‑tax Officer of the area or by a person duly authorised by him in this behalf.
(3) The information in the application forms (Form A and Form B) shall be collated and disseminated by the Wealth‑tax Officer.
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.
Repeal of Capital Value Tax Rules, 1989: ‑The Capital Value Tax Rules, .989, are hereby repealed:
Provided that all instructions and orders issued under the provisions of those W les. If not inconsistent with these rules, shall continue in force.