Property CVT to be deposited through new challan form

[Naveed Yaseen]

ISLAMABAD (May 28 2009): The purchasers of the immovable property, including commercial and residential property within urban areas, are required to deposit the capital value tax (CVT) under the new challan form. In this connection, the FBR has amended the CVT Rules 1990 through SRO 416(I)/2009 issued here on Wednesday. The Federal Board of Revenue (FBR) has issued new CVT challan form on property transactions to introduce the system of Computerised Payment Receipt (CPR) by banks.

Sources told Business Recorder that the purchasers of immovable property including commercial and residential property of specified sizes within urban areas are required to deposit the CVT under this new form. The purchaser would complete the basic information under new CVT form. He would take the CVT form to the concerned registration authority for valuation of the property for CVT purposes.

The purchaser would deposit the amount in the relevant bank where bank staff would feed particulars in system for issuance of the CPR. The purchaser would submit the copy of CPR along with CVT form to the registration authority. Presently, an application form for transfer of property is used for collection of CVT on property. Under the previous form, banks had to stamp the relevant portion of the form.

There is no need of manual stamping on forms by banks in the presence of Computerised Payment Receipt (CPR) system. The relevant portion pertaining to manual stamping has been deleted so that the banks could issue the CPR on payment of CVT on property.

The FBR has also devised the necessary computer software for obtaining electronic information of buyers and sellers under the proposed arrangement. Sources said that the board has amended the CVT challan form on property transactions to collect maximum information of buyers and sellers of property to bring un-documented sector into the tax net.

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