Detailed tax structure for CVT announced
KARACHI:
Capital Value Tax (CVT) on immovable property has now become a provincial subject and as such the provincial government has rationalised the rates of CVT through Sindh Finance Act 2010 with effect from July 1, informed the Chief Inspector of Stamps, Sindh Board of Revenue in a notification on Tuesday.
According to details, CVT will be levied and collected at the rates of 1-Residential immovable (other than flats), situated in the Sindh Province, 2-Residential flats situated in Sindh; and 3-Commercial industrial immovable property, situated in Sindh.
The notification added that where the value of immovable property is recorded 1- from 240 square yards (sq yards) to 499 sq yards, 2 per cent of the recorded value will be charged; 2- from 500 sq yards to 1000 sq yards, 2.5 per cent of the recorded value will be changed, while 3- from 1001 sq yards and above, 3 per cent of the recorded value will be charged.
With regard to residential flats situated in Sindh, where the value of immovable property is recorded a) - from 100 square feet (sq ft) to 1,500 sq ft areas in categories of the valuation table, 2 per cent of the recorded value will be charged, b) - from 1,501 sq ft to 2,200 sq ft areas in all categories of the valuation table, 2 per cent of the recorded value will be charged and where the value of immovable property is not recorded, an amount of Rs10 per sq ft of the landed area will be charged.
Besides, for the commercial and industrial immovable property, situated in Sindh, 2.5 per cent of the recorded value will be charged where the value of immovable property is recorded and Rs100 will be charged per sq yard of the landed area, where the value of immovable property is not recorded, he added.
According to procedure of payment of CVT, all sub-registrars will be issued challans for payment of CVT and the CVT will be paid in the head of account “B017- Capital Value Tax” in concerned branches of National Bank of Pakistan. In respect of Karachi, the CVT would be deposited in the National Bank branches.
It further adds that CVT deposited in the State Bank of Pakistan, the challans will be sent to the treasury office in Karachi, for confirmation of the payment of the CVT. After the confirmation, the documents will be forwarded for further necessary action while the CVT will be levied on value of the property determined by seller/lessee or valuation table, whichever is higher, he said.
Published in The Express Tribune, July 21st, 2010.
Capital Value Tax (CVT) on immovable property has now become a provincial subject and as such the provincial government has rationalised the rates of CVT through Sindh Finance Act 2010 with effect from July 1, informed the Chief Inspector of Stamps, Sindh Board of Revenue in a notification on Tuesday.
According to details, CVT will be levied and collected at the rates of 1-Residential immovable (other than flats), situated in the Sindh Province, 2-Residential flats situated in Sindh; and 3-Commercial industrial immovable property, situated in Sindh.
The notification added that where the value of immovable property is recorded 1- from 240 square yards (sq yards) to 499 sq yards, 2 per cent of the recorded value will be charged; 2- from 500 sq yards to 1000 sq yards, 2.5 per cent of the recorded value will be changed, while 3- from 1001 sq yards and above, 3 per cent of the recorded value will be charged.
With regard to residential flats situated in Sindh, where the value of immovable property is recorded a) - from 100 square feet (sq ft) to 1,500 sq ft areas in categories of the valuation table, 2 per cent of the recorded value will be charged, b) - from 1,501 sq ft to 2,200 sq ft areas in all categories of the valuation table, 2 per cent of the recorded value will be charged and where the value of immovable property is not recorded, an amount of Rs10 per sq ft of the landed area will be charged.
Besides, for the commercial and industrial immovable property, situated in Sindh, 2.5 per cent of the recorded value will be charged where the value of immovable property is recorded and Rs100 will be charged per sq yard of the landed area, where the value of immovable property is not recorded, he added.
According to procedure of payment of CVT, all sub-registrars will be issued challans for payment of CVT and the CVT will be paid in the head of account “B017- Capital Value Tax” in concerned branches of National Bank of Pakistan. In respect of Karachi, the CVT would be deposited in the National Bank branches.
It further adds that CVT deposited in the State Bank of Pakistan, the challans will be sent to the treasury office in Karachi, for confirmation of the payment of the CVT. After the confirmation, the documents will be forwarded for further necessary action while the CVT will be levied on value of the property determined by seller/lessee or valuation table, whichever is higher, he said.
Published in The Express Tribune, July 21st, 2010.