Withholding tax on sale of vehicle

[pwuser163940962256]

Hello can anyone tell me who is responsible for paying withholding tax. The car seller or buyer ?

[pwuser163940962256]

The car was purchased on 2013 and now I’m selling it. The buyer is saying I’m responsible for paying withholding tax. Is this true ?

[Mun33b]

Any tax applicable in the ownership is to be paid by the owner. You have to clear all payables including taxes before selling it to next owner.

[salman_w]

The new owner will pay the tax if the car is on your name and no dues on the car are pending e.g token tax etc. If the car is on open letter and you have to transfer it to your name and then the buyer then you will need to pay for transfer to your name and the new buyer will pay all amount including taxes to transfer the vehicle in his name. In the later case double transfer fee will be paid on one vehicle.
if you pay wht while the car transferred is in the name of someone else, you won't be able to claim it and he can even though you have paid it. buyer pays.

[salman_w]

Buyer is trying to pull a fast one on you bro. Be straightforward with him. You don't have to pay anything or bring the sales deed or whatever they have to as they need your property.
Just make sure all of your car dues are clear as that is your duty unless you negotiate this in the deal.

[Mun33b]

In this case, the buyer is asking him to clear the tax of vehicle before taking it over, which is correct. Buyer is not responsible for paying any existing dues (unless its adjusted in the price/deal).

[salman_w]

As i have mentioned, any uncleared dues under his ownership are his to pay. Actually his question doesn't describe the situation fully, maybe he can clarify. We both are right.
My view was given on my personal experience when a guy i was selling to asked me to transfer the car on his name and claimed this is how its done.

[kjohn_18]

Can u elaborate what do u mean by withholding tax?????? There is only transfer fee that the buyer will pay. There is annual token tax that is seller responsibility. What is this withholding tax????

[capsat]

What is this withholding tax????

thats Federal tax under section (U/S) 234 which everyone has to pay every year for registered vehicles NOT older then 10 years.

[kjohn_18]

Hello can anyone tell me who is responsible for paying withholding tax. The car seller or buyer ?

From this query, it seems that the person is talking abt 1 time payment. This is confusing as there is no such withholding tax. Withholding Tax is already paid on the zero meter vehicle 1 time. Only token tax is paid annually. What is this guy talking abt?????

[Mun33b]

No, this part of withholding tax is paid annually (along with the token tax) for cars which are under 10 years of manufacturing date.

[nfssaad]

i am looking to sale my car soon.

can any one advise complete procedure for karachi/sindh? what documents etc needed.

vehicle is 2021 alto, tax paid till june 2023.

[Mun33b]

Take a set of transfer papers (sales deed and transfer of ownership, printed on stamp papers). It also has delivery letter. The complete set is available with multiple vendors behind civic center, was 600rs or so last time I took. All taxes and dues must be cleared before transfer. After that, the file and signed transfer letter docs are submitted in civic center for the transfer with a fee. Vehicle is inspected by the authority at that time aswell. If you do it through some agent, vehicle inspection is somehow skipped. It takes around a week or so for the transfer process to be completed by them, after which the file can be taken back from the office.
Dont leave this process to be executed by buyer, as in most cases, dealers, will never get it transferred and will become a headache for you later on.