Transfer of immovable property or a new motor vehicle by a non-filer
Transfer of immovable property or a new motor vehicle by a non-filer: In order to reinforce efforts being made for broadening of the Tax Base and to bring about an increase in the number of return filers a new section 227C has been inserted through the Finance Act, 2018.
According to this section applications for booking, registration or purchase of a new locally manufactured motor vehicle or for the first registration of an imported vehicle shall not be accepted or processed by any vehicle registering authority or a manufacturer of a motor vehicle unless the person is a filer as defined in section 2(23A) of the Ordinance.
It would also be pertinent to mention that all motor vehicles regardless of their engine capacity would fall within the purview of this newly inserted section 227C of the Ordinance.
Moreover, it would also be pertinent to mention that the term motor vehicle would include within its ambit all types of automobiles including cars, jeeps, vans, trucks etc irrespective of whether it is for private or commercial use.
However, section 227C does not extend to motorcycles, rickshaws and motorcycle rickshaws i.e. condition of being a filer shall not extend to persons purchasing locally manufactured motorcycles, rickshaws and motorcycle-rickshaws
Furthermore, consequent to the introduction of Section 227C of the Ordinance, through the Finance Act, 2018 any authority responsible for registering, recording or attesting transfer of any immovable property exceeding five million rupees shall not accept or process any application or request by a person for registering, recording or attesting transfer of any immovable property exceeding Rs. 5 Million unless such person is a filer as defined in section 2(23A) of the Ordinance.
It would be pertinent to mention that such immovable property includes within its ambit agricultural, commercial, residential plots/land, houses, buildings, apartments, malls, flats etc.
Moreover the authorities responsible for registering, recording or attesting transfer of immovable property include housing authorities, housing societies, co-operative societies, registrar of properties etc.