CVT on Bank With Power of Attorneyor Not; Sep. 14, 2006;

4/10/2015 GOVERNMENTOFPAKISTANCLARIFICATIONOFCIRCULARNO.2OF2006DATEDJULY1,2006LEVYOFCAPITALVALUETAX(CVT).

file:///C:/Users/salman/Desktop/Circulars/2006/CVT%20on%20Bank%20with%20Power%20of%20Attorneyor%20not%20Sep.%2014,%202006.htm 1/1

GOVERNMENTOFPAKISTANREVENUEDIVISION

CENTRALBOARDOFREVENUE****

No.F.4(1)ITP/2006CVT Islamabad,September14,2006

To:RegionalCommissionerofIncomeTax,CentralRegion,Multan.Subject:CLARIFICATIONOFCIRCULARNO.2OF2006DATEDJULY1,2006LEVYOFCAPITALVALUETAX

(CVT).

IamdirectedtoenclosecopyofemailreceivedfromBankAlfalah,Multan,whereinithasbeenbroughttothe

knowledgeoftheBoardthatRegistrationauthoritiesaredemandingCVTonmortgagedeedsexecutedbythebankingcompanies

withoutpowerofattorney.

2.ThematterhasbeenconsideredintheBoardanditisclarifiedthatregistrationofmortgagedeedinfavourofa

bank(withoutpowerofattorney)doesnotattractCVT.However,CVTwillbechargedatthetimeofactualtransferofasset,in

caseofdefaultinloanrepayment.

(SajjadAli)

Secretary(ITPolicy)Tel:9205561

CopyforinformationtoallRegionalCommissionersofIncomeTaxandDirectorGeneralsofLargeTaxpayer

Units.

Secretary(ITPolicy)