THE VALUE ADDED TAX AND SUPPLEMENTARY DUTY ACT, 2012, CHAPTER XIII TO XVIII

CHAPTER THIRTEEN
AUDIT AND INVESTIGATION

  1. Audit and investigation of a taxpayer’s economic activities.—(1) The

Commissioner or the Director- General may, to prevent tax evasion, conduct, under the provisions of this Act or the rules made thereunder, audit and investigation into all affairs of a taxpayer’s economic activities.

  • The Board shall, in order to conduct such audit and investigation activities, frame rules and compile and publish an Audit Manual.
  • An Officer of VAT, duly empowered by the Commissioner or the Director- General, shall, after conducting the audit and the investigation in accordance with the procedure laid down in the Audit Manual, submit an audit report to the Commissioner or the Director-General.
  • If, in the audit report referred to under sub-section (3), any tax liability for the audited tax period of any taxpayer is identified, the Commissioner or the Director- General shall fix the tax liability, and shall, after determining the interest payable on such unpaid tax, refer the matter to the concerned officer for initiating next proceedings for the collection of such unpaid tax.
  1. Powers of the VAT officers.—(1) An Officer of VAT, duly authorised in this respect, and for authorised purposes, may, through service of a notice, ask for the following information from any person, namely:—
  • necessary information relating to any person for conducting the audit and the investigation; or
  • any document or evidence under the custody of any person.
  • Such an authorised VAT officer shall have the following powers, namely:—
  • to make copies of any record;
  • to seize any record in the prescribed manner;
  • to seal any record or good; and
  • to take steps, in the prescribed cases and manner, to freeze bank accounts of any person.
  • In relation to the seizure of any record, document or a good, those shall be returned, under such procedure as may be prescribed, to such person from whom they were seized.
  • If a person lawfully claims any special right or privilege over any document or any other evidence, which the authorised VAT officer requires to seize or examine, the documents over which such special right or privilege is claimed shall be put into an envelope which shall then be sealed jointly and sent to the Board to determine whether the documents in question carry special right and are privileged or not.
  • No entry shall be made or search conducted, under any provision of this Chapter, into any premises of a diplomatic, consular or other mission of a foreign country or international organisation which enjoys immunity from such entry or search under international law.

Explanation: In this section, “authorised purpose” means—

  • collection of information for fixing the tax liability of any person;
  • collection of information for collecting tax from any person;
  • identification of tax evasion; or
  • ensuring compliance with the provisions of this Act.
  1. Supervised supply, observation and surveillance.—(1) Where a taxpayer does not comply with the provisions of this Act with an intention of evading payment of supplementary duty, an Officer of VAT may, under orders from the Commissioner observe, and keep surveillance on, any supervised supply, in a prescribed manner, at any place relating to his economic activities subject to supplementary duty to determine the actual tax liability of such taxpayer.
  • Such officer of VAT shall, specifying all information necessary to determine the tax liability of such taxpayer, submit a report to the Commissioner.
  • The Commissioner may, after giving the taxpayer an opportunity of being heard, determine the actual tax liability of such taxpayer on the basis of the report submitted under sub-section (2) and any other information gathered under this Act or the rules made thereunder.
  1. Multiple departmental audits.—No registered or enlisted person shall be included for audit twice for the same tax period unless the Commissioner has reliable information or other genuine cause to believe that such person has, submitting wrong or false information or fake documents, fraudulently evaded tax in relation to such audited tax period.
  2. Special audit.—(1) The Board may, subject to such limitations and such terms as may be prescribed, appoint an auditor to hold any audit, including a special audit, of records and accounts of any registered or enlisted person.

(2) The auditor so appointed under sub-section (1) shall, for the purpose of this section, be treated to be an officer of VAT.

CHAPTER FOURTEEN
RECOVERY OF ARREAR TAX

  1. Recovery of arrear tax.—(1) Where any amount of VAT, supplementary duty, turnover tax, interest monetary penalty or fine remains payable by a defaulting taxpayer, the Commissioner shall initiate a proceeding for the recovery of such arrear taxes from such defaulter.
  • An arrear tax shall become payable, if—
  • the amount of arrear taxes is shown as payable on a return and remains unpaid;
  • the amount of arrear taxes is shown in the notice of tax determination served on the taxpayer and the defaulting taxpayer fails to pay it by the last date specified in such notice; or
  • an amount of arrear tax becomes payable on the disposal of any proceeding under this Act.
  • The Commissioner shall, if an arrear tax becomes payable by a defaulting taxpayer under sub-section (2), send a notice to such defaulting taxpayer for the recovery of such taxes.
  • In a proceeding relating to the recovery of arrear taxes, and in relation to fixing the liability and the amount of such taxes, such notice shall be treated to be the conclusive proof.
  • The Commissioner shall, in matters of recovery of arrear taxes, take the following actions, namely:—
  • deduct, in the prescribed manner, the amount of arrear tax from the money the defaulting taxpayer may have under the control of any authority of Income Tax, Customs, VAT or Excise;
  • direct any person or associate or financial institution or bank holding any money of the defaulting taxpayer to pay the amount by such person or bank;
  • issue an order directing to stop the supply of any good or any service from the business premises of the defaulting taxpayer;
  • lock the business identification number in the Bill of Entry processing system in the Custom House to stop clearance of imported goods of the defaulting taxpayer;
  • issue an order, in the prescribed manner, directing to freeze the bank accounts of the defaulting taxpayer;
  • issue an order directing to seal the business premises of the defaulting taxpayer or seal such business premises within the prescribed time and in the prescribed manner;
  • recover the arrear taxes by attaching and selling, in the prescribed manner, any of the defaulting taxpayer’s immovable property and by seizing and selling any of his movable property; or
  • take a take a security deposit from a guarantor of the defaulting taxpayer in such manner and on such terms as may be prescribed.
  • In relation to the recovery of arrear taxes by a Customs Commissioner, such arrear taxes shall be collected in the same way as Customs duty on imports is collected.
  1. Power of VAT officer under the Code of Civil Procedure.—In relation to the recovery of money under the Code of Civil Procedure, an officer of VAT, duly empowered in this behalf and subject to the provisions of this Act, shall have the same powers as those of a Civil Court for the recovery of arrear taxes.
  2. Change in jurisdiction for recovery of arrear tax.—Where a defaulting taxpayer resides in, or has an economic activity or a property within, the jurisdiction of any other Commissioner, the Commissioner may make a request to such other Commissioner to recover the arrear tax, and such Commissioner shall, on such request, recover the arrear tax in such a manner as if the tax were an arrear in his jurisdiction.
  3. Disposal of money or security recovered.—(1) Where the amount, of money recovered or, of security furnished, is less than the arrear taxes, such amount of money or of security shall, in the prescribed manner, be disposed of in the following order, namely:—
  • first, to reduce the amount of payable interest;
  • secondly, to reduce the amount of monetary penalty or fine; and
  • thirdly, to reduce the amount of VAT, supplementary duty or turnover tax.
  • Where the amount, of money recovered or, of security furnished, is more than the arrear taxes, the excess amount of money or of security, left after a disposal of such amount under sub-section (1), shall be given back to the defaulting taxpayer or the guarantor.
  • The Commissioner shall, in such manner and within such time as may be prescribed, inform the defaulting taxpayer of the disposal of the amount, of money, or of security, under sub-section (1) and (2).
  1. Government lien on the immovable property of the defaulting taxpayer and attachment thereof.—(1) If a defaulting taxpayer fails to pay an arrear tax by the due date, a preferential lien in favour of the Government shall be created on all the properties belonging to such defaulting taxpayer, and such lien shall continue to exist until the arrear tax is paid.

(2) The Commissioner shall, by serving a notice, inform the defaulting taxpayer of the creation of such lien, and if the defaulting taxpayer fails to pay the arrear tax within one month from the date of service of such notice, the Commissioner may, in the prescribed manner, recover the arrear tax by attaching and selling the immovable property of such defaulting taxpayer.

  1. Seizure of goods, sale of such goods and disposal of the saleproceeds thereof.—(1) Where any good is seized on-the-spot and without serving any notice for the recovery of arrear taxes, the Commissioner shall, as soon as possible, serve a notice of such seizure on—
  • the owner of the good;
  • the person who had custody or control of the good immediately before such seizure; or
  • any person claiming the seized good: provided that no such notice shall be required to be served if no one claims the good
  • Where any good is seized under sub-section (1), the Commissioner may, on the following terms and conditions, return such good to such person, namely:—
  • if a security deposit of money equal to the amount of arrear taxes for which the seizure has been made is furnished; or
  • if, by agreeing to pay, in instalments, an amount equal to the amount for which the seizure has been made, the first instalment thereof is paid.
  • If the tax is not paid or a security deposit for the payment thereof is not furnished or the first instalment of the tax is not paid by the defaulting taxpayer even after agreeing to pay by such instalments, the Commissioner may, within such time and in such manner as may be prescribed, sell the seized goods.
  • The sale proceeds of the seized goods shall be disposed of in the following manner, namely:—
  • first, by paying the cost of seizure, storage and sale of the goods;
  • secondly, by paying off the amount of money equal to the amount of arrear taxes for the recovery of which the goods were seized;
  • thirdly, by paying the taxes payable under any Law repealed by this Act; and
  • fourthly, by paying the balance, if any, back to the owner of the goods.
  • Where a proceeding is pending before a Commissioner (Appeal) or an Appellate Tribunal or the Supreme Court against the tax determination on the basis of which the goods were seized for the recovery of the arrear taxes, the sale of the property of the defaulting taxpayer shall, except for the following cases, remain suspended, namely:—
  • goods subject to decay or perishable goods; and
  • any good specified by the Commissioner.
  1. Liabilities and obligations of the —(1) The

representative of the defaulting taxpayer shall also be responsible for all the duties and responsibilities devolved on such taxpayer for the recovery of arrear taxes.

  • The amount recoverable from the representative towards the realisation of arrear taxes may extend to as much of the defaulting taxpayer’s money and property as is held by, or is under the control of, such representative.
  • The representative shall also be personally liable for the arrear taxes if, while such taxes remain unpaid, he —
  • withdraws, makes charges against or transfers the payable money received or accrued for the payment (of the arrear); or
  • withdraws any amount of money or fund under his possession but belonging to the defaulting taxpayer or gives it to some other person.
  • Nothing in this section shall exempt a defaulting taxpayer from the duties and responsibilities enjoined upon him by this Act or the rules made thereunder if a representative as such fails to perform his duties.
  • If there are two or more representatives of a defaulting taxpayer, the duties or obligations referred to in this section shall be vested upon all such representatives jointly and severally.
  1. Responsibilities of receivers.—(1) The Commissioner may, for the recovery of arrear taxes, make a request to a receiver to pay such arrear taxes from the property of the defaulting taxpayer that has been taken in the possession of such receiver.

(2) The receiver, if so requested by the Commissioner under sub-section (1), shall, in the prescribed manner, pay the arrear taxes from the saleproceeds of such property, and shall inform the Commissioner of the payment of such arrear taxes along with documentary evidence thereof.

Explanation: In this section, “receiver” means a person appointed or empowered by any law or Court.

  1. Liability of directors or entrepreneurs of any company or association of persons or of property development joint venture.—(1) If a company or association of persons or property development joint venture fails to pay arrear taxes, and if the directors or representatives or entrepreneurs who were in charge of such company, or association of persons or property development joint venture, when such money fell in arrear, failed to show proper care, responsibility and skill, shall be liable, jointly and severally, to pay such arrear taxes till such time as may be prescribed.
  • Every director or representative or entrepreneur so liable to pay the arrear taxes shall be entitled to a reimbursement from other directors or representatives or entrepreneurs.
  • Without prejudice to the generality of functions rendered by such director or representative or agent or entrepreneur, the following activities shall be

deemed to have been done by such company or association of person or

property development joint venture, namely:—

  • carrying on of an economic activity or any part thereof;
  • any supply, import or acquisition in the course of an economic activity;
  • manufacture of goods or supply of services;
  • receipt of any issued notice;
  • filing of a return;
  • payment of taxes; or
  • providing information.
  1. Continuity of partnerships or unincorporated associations.—If—
  • a partnership or other unincorporated association of persons is dissolved or otherwise ceases to exist because of the admission of a new partner or member or of retirement;
  • a new partnership or an unincorporatd association of persons, consisting of the remaining members, comes into existence; and
  • the new partnership or unincorporated association of persons carries on the same economic activity as was carried on by the dissolved partnership or association,

the dissolved partnership or association and the new partnership or association shall, then, for the purposes of this Act, be deemed to be an inseparable partnership or association of persons.

  1. Death or insolvency of a taxpayer.—If, after the death of a taxpayer or the declaration of a taxpayer as bankrupt, the economic activity of such taxpayer is carried on by any Trustee or Executor of property of such taxpayer, such Trustee or Executor shall, for the purposes of this Act, be treated as a taxpayer.
  2. Payment of arrear tax by instalments.—(1) The Commissioner may, within such time-limit, on such terms and in such manner as may be prescribed, give permission to a defaulting taxpayer to pay arrear taxes in instalments, and may, for default in paying any instalment, cancel such permission.
  • The time- limit for the payment of arrear taxes by instalments granted

under this section shall not be more than 12 (twelve) months.

CHAPTER FIFTEEN

MAINTENANCE OF FORMS, NOTICES, AND RECORDS

  1. Keeping of records and accounts.—(1) Every taxpayer shall, in such form and manner as may be prescribed, keep, for a period of 5 (five) years, all accounts,

documents and other records of his economic activities so as to facilitate assessment of his tax liability and other obligations.

  • Without prejudice to the extent of coverage of sub-section (1), the records

maintained and accounts kept shall include the following documents,

namely:—

  • all statements of purchase of goods, services or immoveable property, whether taxable or exempted from tax, and all tax invoices related thereto;
  • all statements of sale of goods, services or immovable property;
  • all tax invoices, credit notes, debit notes, and integrated tax invoices and withholding certificates issued and received by such person;
  • all customs documentation relating to imports and exports of goods by such person;
  • all records showing, at any particular time, the prices at which the person sells the products manufactured by him, the input-output coefficient for such products, and all records of, discounts offered by the manufacturer of such products or, of credits;
  • all records relating to the supply of services subject to supplementary duty or the manufacture of goods subject to supplementary duty and related documents;
  • all treasury challans (receipts) showing the deposit of tax imposed or, where payment was made in ways other than by treasury challans (receipts), appropriate documentary evidence in support of such payments;
  • all returns for every tax period; and
  • any other prescribed documents or records .
  1. Authentication of forms, notices and documents.—For the purposes of this Act, the Board may determine the format of any form, notice, returns and other documents in such manner as it may think fit and proper.
  2. Service of notices.—(1) For the purposes of this Act, where a summons or notice or decision or order or instruction is required to be served on a person, it shall be deemed to have been properly served on such person, if it is—
  • personally received by such person or his representative;
  • sent at his last known place of abode or business in Bangladesh;
  • sent by registered post to his last known address;
  • sent through an electronic means; or
  • displayed in the notice board of the concerned VAT office, if not possible to be served in the manners specified in clause (a) to (d).
  • No question as to the validity of a notice served under this Act or any rule

made thereunder shall be raised after the compliance with (the

requirements of) such notice, in full or in part.

  1. Authenticity of documents.—(1) A notice or document, served under this Act or any rule made thereunder, or issued by any authorised VAT officer, shall be deemed to be sufficiently authenticated, if the signature, and name and designation of the concerned official is printed or stamped and the telephone or fax or mobile phone number or email address of such officer is mentioned therein, and an official file and issue number are printed or stamped or inserted on such notice or document.
  • Any document made, issued, or executed under this Act or any rule made

thereunder shall not be—

  • deemed to be void or voidable for not being made or executed in prescribed forms; or
  • deemed to affect its authenticity because of any mistake, defect, or omission therein;

if it is in conformity with the subject and context thereof.

CHAPTER SIXTEEN
OFFENCE, TRIAL AND PUNISHMENT

  1. Offences relating to VAT registration certificate or turnover tax certificate and tax invoice, and punishment thereof.—Whoever dishonestly—
  • makes or uses a fake VAT registration certificate, turnover tax certificate or integrated tax invoice and withholding certificate bearing a forged or false business identification number; or
  • makes or uses a forged or false tax invoice, credit note, debit note, integrated tax invoice and withholding certificate;
  • evades payment of the payable tax otherwise; or
  • claims a tax refund without such person being entitled to such refund,

shall be punished with imprisonment for a term which may extend to one year, or with a fine equal to the amount of tax payable, or with both.

  1. Offence and punishment relating to false or misleading statement or

description.—Whoever dishonestly makes a false or misleading statement or description in any tax document submitted to any VAT officer shall be punished with imprisonment for a term which may extend to 6 (six ) months, or with a fine equal to the amount of tax payable, or with both.

  1. Offence and punishment for obstructions.—Whoever, with a mala fide intention, obstructs or attempts to obstruct any VAT officer in discharging his duties under this Act or any rule made there under shall be punished with imprisonment for a term which may extend to 6 (six) months, or with a fine which may be not less than 10 (ten) thousand taka and not more than 2 (two) lakh taka, or with both.
  2. Investigation, trial and appeal of the offence.—(1) Notwithstanding anything contained in the Code of Criminal Procedure or in any other law for the time being in force, the offences shall be triable by a First Class Judicial Magistrate or Metropolitan Magistrate empowered under the Code of Criminal Procedure and may impose any amount of fine prescribed in this Act.
  • The offences shall be bail able and non-cognizable.
  • No such Judicial Magistrate or Metropolitan Magistrate shall take cognizance of an offence except through a complaint, in writing, made, subject to the approval of the Commissioner, by an officer of VAT not below the rank of an Assistant Commissioner.
  • The VAT officer shall, in such manner and within such time as may be prescribed, complete the investigation of any offence punishable under this Act.
  • Such Judicial or Metropolitan Magistrate shall try the offences following the summary trial procedure laid down in the Code of Criminal Procedure, and the appeal, review and revision in respect of such offences shall be filed and disposed off in accordance with the provisions laid down in the Code of Criminal Procedure.
  1. Additional Power of the Judicial Magistrate or the Metropolitan

Magistrate.—For the purposes of this Act, the Judicial Magistrate or the Metropolitan Magistrate shall also have the power to freeze the bank accounts of a person committing the offence.

  1. Offence committed by any company, association of persons or property development joint venture.—(1) If an offence is committed by any company or association of persons or property development joint venture, every director, partner, chief executive, manager, secretary, official, employee, representative or VAT Agent thereof having involvement with such offence shall be deemed to have committed such offence unless he proves that such offence was committed without his knowledge or he tried his best to prevent the commission of such offence.

(2) A company may be tried and punished in the same judicial proceeding which is lodged against such director, partner, chief executive, manager, secretary, official, employee, representative or VAT Agent of such company, but no imprisonment other than fine shall be imposable upon such company.

  1. Abettor of offence.—Whoever abets or gives support or incites or excites a person in the commission of any offence, shall be deemed to have been an offender as a committer of such offence, and shall be punished similarly as such committer is punished.
  2. Prior approval before filing a case.—Without the prior approval of the Commissioner, no case in respect of any offence shall be filed in any court.
  3. Compoundability of the offences.—(1) The offences shall, in the prescribed manner, be compoundable.

(2) Every case before or after the prior approval of the Commissioner for filing thereof, is compromisable in such manner and on such terms as may be prescribed by the Board, but after filing such case, permission of the court shall be required to make such compromise.

  1. Fine additional to the tax payable.—The fine imposed as punishment by a Judicial Magistrate or a Metropolitan Magistrate shall be in addition to VAT, supplementary tax, turnover tax or monetary penalty.

CHAPTER SEVENTEEN
APPEALS AND REVISIONS

  1. Appeal to Commissioner (Appeal).—(1) If any person or any VAT officer is aggrieved by a decision taken or order issued under this Act or the rules made there under by any Additional Commissioner or any VAT officer below the rank of an Additional Commissioner may, within 90 (ninety) days from the date of issue of such decision or order, lodge an appeal in the prescribed manner to the Commissioner (Appeal).
  • Where a person other than a VAT officer prefers an appeal under sub­section (1), he shall, at the time of filing such appeal, pay ten percent of the tax specified in the impugned order or if no such tax is specified therein, ten percent of the monetary penalty imposed.
  • The Commissioner (Appeal) shall, after giving an opportunity of proper hearing to the parties to the appeal in the prescribed manner, dispose of the appeal within a period of time not exceeding 1 (one) year.
  • The Commissioner (Appeal) may uphold, change or set aside the impugned decision or order, or may pass such order as he thinks fit and proper:

Provided that he shall not, de novo, send the case on remand for reconsideration.

  • In the interest of deciding an appeal, the Commissioner (Appeal) may, in the prescribed manner and within the prescribed time, make such further scrutiny or hold such further enquiry, collect such further information or make such further verification of the accuracy of the proceedings in respect of the impugned matter as may be necessary.
  • Notwithstanding anything contained in this Act or the rules made there under, if the Commissioner (Appeal) fails to dispose off an appeal within the stipulated time, such appeal shall be deemed to have been granted by the Commissioner (Appeal).
  1. Appeal to Appellate Tribunal.—(1) If any person or any VAT officer is aggrieved by a decision taken or order issued under this Act or any rule made there under by any Commissioner or Commissioner (Appeal) or Director- General or by any VAT officer holding the same rank may, within 90 (ninety) days from the date of service of such decision or order, prefer an appeal in the prescribed manner before the Appellate Tribunal.
  • Where a person, other than a VAT officer, prefers an appeal under sub­section (1), he shall, at the time of filing such appeal, pay ten percent of the tax specified in the impugned order or, if no such tax is specified therein, ten percent of the monetary penalty imposed.
  • The Appellate Tribunal, after hearing the parties to the appeal, may pass such order as it thinks fit and proper, including an interim order staying the collection of tax.
  • Any interim order of the Appellate Tribunal staying collection of tax shall cease to have effect on the day after the expiry of a period of 6 (six) months following the day on which it was passed unless the case is finally decided, or the interim order is withdrawn by the tribunal earlier.
  • Notwithstanding anything contained in this Act or the rules made there under, if the Appellate Tribunal fails to dispose off the appeal within a period of 2 (two) years, the appeal shall be deemed to have been granted by the Appellate Tribunal.
  • The functional procedures of the Appellate Tribunal and of its branches shall be determined by the Tribunal itself.
  • Every proceeding before the Appellate Tribunal shall be deemed to be a judicial proceeding within the meaning of sections 193 and 228 of the Penal Code (Act XLV of 1860) and the Appellate Tribunal shall be deemed to be a Civil Court under the Code of Civil Procedure.
  1. Burden of proof in a proceeding.—(1) In the case of proving the points at issue of any proceeding before the Commissioner (Appeal) or the Appellate Tribunal, the affidavit submitted by the Commissioner in the prescribed manner shall be treated as a conclusive proof thereof unless the taxpayer may prove otherwise rebutting the contents of such affidavit.

(2) A copy of the notice issued by the Commissioner and other concerned documents shall be attached with such affidavit.

  1. Revision by the High Court Division.—(1) Any person or any VAT

officer not below the rank of a Commissioner or a Director- General, aggrieved by an order of the Board or of the Appellate Tribunal, may prefer a revision petition before the High Court Division of the Supreme Court on questions of law of such order.

  • Notwithstanding anything contained in any other law for the time being in force, the provisions of the Code of Civil Procedure shall, as far as possible, apply to the matters of such revision.
  • In relation to submission of a revision application before the High Court Division under sub-section (1), the provisions of Section 5 of the Limitation Act, 1908, shall apply.
  • In relation to submission of a revision application before the High Court Division, under sub-section (1), by a person other than an officer of VAT, such person shall, at the time of filing such revision application, pay 10 (ten) percent of the payable tax or of the monetary penalty specified in the impugned order.
  1. Alternative dispute resolution.—(1) Notwithstanding anything contained in any other provision of this Act, a taxpayer may, in the prescribed manner, on the prescribed terms and within the prescribed time, apply to a facilitator, selected by him from the prescribed panel, to have a dispute resolved through alternative dispute resolution process; and the facilitator may, in the prescribed manner, on the prescribed terms and within the prescribed time, take steps to resolve such dispute, on the basis of consensus, through alternative means.
  • The Board may, by a notification in the official Gazette, designate, from time to time, one or more of the VAT Commissionerates for processing the applications of alternative dispute resolution.
  • If a dispute is resolved on the basis of consensus through alternative dispute resolution, no objection in respect of such consensus shall be raised in any court, and the disputes which cannot be resolved on such consensus through alternative dispute resolution process, may again be taken up for proceeding under the provisions of this Act.
  • If a dispute or any part thereof could not be resolved through alternative dispute resolution process, the time spent for such resolution shall not be included in calculating the time for filing an appeal.

Explanation: In this section, “dispute” means a dispute arising out of the application of any provision of this Act or any rule made there under, but does not include an offence or a dispute involving a question of law.

CHAPTER EIGHTEEN
MISCELLANEOUS

  1. Tax exemption by the Government.—(1) The Government may, by a notification in the official Gazette, exempt, the whole or a part of the taxes imposable under this Act, if a need arises to take immediate action to face a situation of national importance, for a specified period till the next Finance Act takes effect, but if the exemption given under this sub-section is not included in the next Finance Act, it shall automatically become ineffective.

(2) In relation to an international assistance and loan agreement, if any provision is included in such agreement for the exemption of any tax, in part or in full, on an import or a supply under such agreement, the Government may, by a notification in the official Gazette, exempt such tax or a part thereof imposable under this Act, and

  • in relation to import: the import shall be exempted and such exemption shall be made effective; and
  • in relation to supply: the exemption shall be made effective by giving refund under section 71 without exempting such supply or the person to whom such supply is made.
  1. Imposition of interest on payable tax.—(1) If a person fails to pay a tax payable to the Commissioner on or before the due date of payment, he shall be liable to pay an interest at a simple rate of two percent per month on the amount of payable tax, from the next day after the date the payment becomes due to the date the payment is made.
  • The Commissioner shall recover the interest from such person in the same manner as taxes are recovered from him.
  • If a person pays an interest and an amount to which the interest relates is found not to have been payable, the interest paid on such amount shall be refundable to such person.
  • Interest shall be payable in additional to any monetary penalty or fine.
  1. Online performance of functions, filing of return and payment of tax, etc.—Any function under this Act may, subject to the provisions of The Information and Communications Technology Act, 2006 ( Act No. 39 of 2006), be performed online or through an electronic means within such time, on such terms and in such manner as may be prescribed.
  2. Bar to the lodgement of suits in the Court.—No proceeding other than the proceeding or judicial proceeding under this Act or any rule made there under shall lie to any court against an order passed or decision made or action taken (tax determination, tax imposition, imposition of monetary penalty, imposition of interest, any audit, enquiry or or investigation or other similar matters for amendment or cancellation of tax recovery) by the Board or by a Commissioner.
  3. Appointment of VAT Consultant.—(1) A person from among the persons having licence to represent a taxpayer in any proceeding or to render advice to such taxpayer, may be appointed as a VAT Consultant.

(2) For the purposes of sub-section (1), the Board may, upon an application made in the prescribed manner and on the prescribed terms by any person desiring to act as a VAT Consultant, issue to such person a licence in the prescribed manner and on the prescribed terms.

  1. Correction of clerical mistakes, etc.— A VAT officer may rectify any clerical or mathematical mistake in anything done under this Act or any rule made there under.
  2. Certified copy of documents.—The Commissioner may, upon an application made by a taxpayer, issue, on such terms and in such manner as may be prescribed, a certified copy of the following documents, namely:—
  • any document or paper submitted by the taxpayer to the VAT officer;
  • any document submitted to any VAT officer as a proof of withholding of tax by any withholding entity; or
  • any other document specified by the Board.
  1. Issuance of VAT clearance certificate.—(1) A taxpayer may, on the prescribed terms and in the prescribed manner, make an application to the Commissioner for a VAT clearance certificate.

(2) The Commissioner may, in the prescribed manner, issue a VAT clearance

certificate to such applicant if he is satisfied that—

  • no tax is in arrear with, or payable by, such taxpayer; or
  • a security deposit is furnished by the taxpayer for the payment of the tax.
  1. Acts to be done through a private organisation.—The Board may, in the prescribed manner and on the prescribed terms, get one or more of the following acts done by any private organisation at competitive prices, namely:—
  • to make entries and process any information, including the preliminary information provided in the return;
  • to prepare a list of all the persons to whom business identification numbers have been issued; or
  • to perform any other act prescribed by the Board.
  1. Power to make rules.—The Board may, for the purposes of this Act and subject to its provisions, by a notification in the official Gazette, make rules.
  2. Publication of translated English text.—(1) After the introduction of this Act, the Government may, if it is considered necessary, publish, by a notification in the official Gazette, an authentic English Text of this Act translated from the Bengali Text.

(2) In case of a conflict between the English and the Bengali texts, the Bengali

text shall prevail.

  1. Repeal and savings.—(1) On the coming into force of this Act, the Value Added Tax Act, 1991 (Act No. XXII of 1991), shall stand repealed.

(2) Upon such repeal of the said Act,—

  • anything done or any action taken under the said Act shall, so far as they are consistent, be deemed to have been done and taken under this Act;
  • all rules made, orders passed, notifications published, and notices issued under the said Act shall, so far as they are consistent with the provisions of this Act, continue to be in force until they are repealed or amended, and shall be deemed to have been made, passed, published and issued under this Act;
  • all taxes or fees or other dues payable under or imposed by the said Act, if in arrear before this Act comes into force, shall be recovered by the said Act, and any matter, if unresolved, shall be resolved under the said Act as if the said Act has not been repealed.
  1. Tax accounting during transition.—(1) Notwithstanding the provisions contained in section 33, the value added tax imposed on a taxable supply shall be payable on the day of introduction of this Act, if—
  • a supply has been or is made after the day of introduction; and
  • a tax invoice for a supply was issued or the value of the supply was made, or both the actions were completed before the day of introduction:

Provided that no value added tax would be payable if such person has already paid value added tax on the supply under the Value Added Tax Act, 1991, and included that value added tax in a return submitted to the Commissioner under that Act.

(2) Each part of a progressive or periodic supply made under sub-section (1)

shall be, separately, subject to Value Added Tax and such supplies shall be

treated as separate supplies.

  1. Agreements entered into after the introduction of this Act.—Where a contract is concluded after the introduction of this Act and the contract does not include a provision relating to value added tax and supplementary duty—
  • such contract price shall be deemed to include the value added tax and supplementary duty (if any) payable on the supply; and
  • the supplier under the contract shall be required to pay the value added tax and supplementary duty (if any) imposed on supplies made under the contract, whether or not the supplier include those taxes in the price for such supplies under such contract.
  FIRST SCHEDULE

(see section 26)

Exempted supplies or imports

First Part

(1) In relation to manufacture or production of any good mentioned in the second schedule of the Narcotic Drugs Control Act, 1990 (Act XX of 1990).
(2) The supplies and imports mentioned below shall be exempted, namely:—
Item No. Description

 

Basic necessities

1. any supply or import of prescribed basic food items for human consumption.
2. any supply or import of prescribed life-saving drugs.
3. A supply of the transportation services by taxis, buses, mini-buses, or ferries, but other than the following—

(a)          supply of transportation services provided through air-conditioned vehicles; or

(b)          a supply of a chartered tour of a kind ordinarily provided to tourists or other visitors.

4. A supply of the following services relating to social welfare activities, if the services are provided by a government entity or an approved charitable institutions (Trust or Wakf):

(a)          Public Health and medical services;

(b)          Education and training; or

(c)          Child care activities and residential care facilities for the aged, indigent, infirm, or disabled persons who need permanent care.

 

Agriculture, horticulture, pisciculture and veterinaries

5. A supply of unprocessed agricultural, horticultural, or piscicultural products if the supplier is the producer of the goods.
6. A supply of goods or services to be used as inputs to agriculture, horticulture, or pisciculture, as prescribed by the Board.
7. A supply of land to be used for agriculture, horticulture or pisciculture.
8. A supply of veterinary Services prescribed by the Board.

 

 

 

Item No. Description
Immoveable property
9. A sale of vacant land.
10. A lease, licence, hire or other forms of supply of the right to occupy and reside in residential premises. ,
11. Where an immoveable property relates to a residential premise, the first sale of a new such premise or its sale other than a sale, within two years, of such property after its first use as a residential premise.
Special situations
12. A supply of goods used only in cases of supplies of exempted supplies by a registered person or if the good is a passenger vehicle, where such person pays input tax, but is not entitled to tax credits, the supply of such good.
Non-commercial activities of approved charitable institutions
13. A supply made by an approved charitable institution, if—

(a)          the supply is of a prescribed kind; or

(b)          the supply relates to any specified religious, charitable, or other non­profit activities.

Culture
14. (a)          A prescribed supply of cultural services made on a non-profit basis;

(b)          A supply of newspapers.

Intermediation
15. A supply of financial services, except for the amount to the extent that a specific fee is claimed, or a charge made, for the service.

 

  • For the purposes of item 3 of the TABLE—
  • “bus” means a vehicle used for the transport of more than 40 (forty) persons, including the driver; and
  • “mini-bus” means a vehicle used for the transport of not less than 15 (fifteen), but not more than 40 (forty), persons, including the driver.
  • For the purposes of item 15 of the TABLE, “financial services” means—

(a) the deposit of money for loans, credits, credit guarantees by the donors and management thereof, including the management of loans, credits or credit guarantees;

  • financial transactions, deposit and current accounts, payments, transfers, debts, cheques, or negotiable instruments, other than debt collection and true factoring;
  • all transactions relating to financial derivatives, options to acquire financial instruments, and similar arrangements, but only including futures or forward contracts reached under a specifically defined market or where both the parties concerned with such transactions do so independently and on the basis of equality after protecting their own respective interests, if—
  • the contract does not provide for the delivery of a commodity; or
  • the contract provides for the delivery of a commodity and the supply of the commodity is an exempt supply; or
  • the contract provides for the delivery of money;
  • transactions relating to shares, stocks, bonds, and other securities, but not including custody services;
  • the provision or transfer of ownership of an interest in a scheme whereby provision is made for the payment or granting of benefits by a benefit fund, provident fund, pension fund, retirement annuity fund or preservation fund; and
  • the provision or transfer of ownership of a life insurance contract or the supply of re-insurance in respect of any such contract,

Provided that such supplies shall not include a supply of the services of arranging for, or facilitating of, any of the supplied services.

Second Part

(1) The following imports shall be tax exempted, namely:—

Item No. Description
1. The import of any exempted or zero-rated good.
2. The import of goods received as unconditional donations in favour of an approved charitable organisation or the State and exempted from taxes by the Government by a notification.

Explanation: “Approved Charitable Organisation” means an organisation specified under rules.

3. The import of a good that was exported and, later, brought back to Bangladesh by any person without such good having been subjected to any process of manufacture or adaptation and without a permanent change of ownership; but if, at the time when the good was exported,—

(a)           it was under a zero-rated supply: or

(b)          it was supplied before the introduction of this Act.

 

Item No. Description
4. The import of a good shipped or brought to Bangladesh for trans-shipment or for sending such good to any other country.
5. The import of a good made available free of charge by a foreign government or an international organisation approved by the Board with a view to assisting the economic development of Bangladesh.
6. The import of goods for the provision of immediate relief to disaster-affected people, as approved by the Government.
 

SECOND SCHEDULE

(see section 55)

GOODS AND SERVICES SUBJECT TO SUPPLEMENTARY DUTY

  • In respect of the goods and services mentioned, respectively, in the second and third columns of the TABLES in the first and the second part of this schedule, the rate of supplementary duty or the specific amount of supplementary duty as shown against each in the fourth column of the TABLES, shall apply.
  • The H.S. Codes and Description of goods in this schedule are like those in the Bangladesh Customs Tariff under the Customs Act.

First Part

Goods subject to supplementary duty

Heading No. H.S. Code Description of goods Rate or amount of supplementary duty (%)
(1) (2) (3) (4)
21.06 2106.90.10 any item used in the preparation of soft drinks, other than those with a mixture of perfumed substances, containing alcohol exceeding alcoholic strength 0.5% by volume 350
22.02 2202.10.00 soft drinks 100
  2202.10.90 non-alcoholic beer 100
22.03 2203.00.00 Beer made from malt 250
 

 

 

Heading No. H.S. Code Description of goods Rate or amount of supplementary duty (%)
22.04 All H.S. Codes Wine of fresh grapes, including fortified wines; grape must other than that of heading 20.09 350
22.05 All H.S. Codes Vermouth and other wine of fresh grapes 350
22.06 2206.00.00 Other fermented beverages (for example: cider, parry,); 350
22.08 All H.S. Codes Un-denatured ethyl alcohol of an alcoholic strength by volume of less than 80% volume, spirits, liqueurs and other spirituous beverages 350
24.01 All H.S. Codes Un-manufactured tobacco, tobacco refuse 60
24.02 2402.10.00 Cigars, cheroots and cigarillos, containing tobacco 350
2402.20.00 Cigarettes containing tobacco 350
2402.90.00 Bidi or others made by hand or non- mechanically 100
24.03 All H.S. Codes Other manufactured tobacco and manufactured tobacco substitutes; “homogenised” or “reconstituted” tobacco extracts and essences 100
25.15 2515.11.00 Marble and travertine (apparent specific of 2.5 or more), crude or roughly cut 20
2515.12.00 Merely cut, by sawing or otherwise, into blocks or slabs of a rectangular (including square) shape 20
2515.20.00 Ecaussine and other calcareous monumental or building stone; alabaster 20
25.16 2516.11.00 Granite (crude or roughly cut) 20
 

 

 

Heading No. H.S. Code Description of goods Rate or amount of supplementary duty (%)
  2516.12.00 Granite, merely cut, by sawing or otherwise, into blocks or slabs of a rectangular or square shape 20
       
25.23 2523.21.00 Portland cement: white, whether or not artificially coloured 20
2523.29.00 Other Portland cement 20
27.10 2710.12.39 other light oil and preparations: others 20
  2710.12.50 other medium oils and preparations 20
  2710.12.69 gas oil: others 20
  2710.19.19 fuel oil: others 20
  2710.19.33 partly refined petroleum including topped crudes 20
  2710.19.34 grease (mineral) 20
  2710.19.39 other heavy oils and preparations: : (except trasformer oil and heavy normal paraffin) 20
27.11 2711.21.00 natural gas: gaseous 100
33.03 3303.00.00 Perfumes and toilet waters 20
33.04 All H.S. Codes Beauty or makeup preparations and preparations for the care of the skin (other than medicaments), including sunscreen or sun tan preparations; manicure or pedicure preparations 20
33.05 All H.S. Codes Preparations for use on the hair 60
 

 

 

Heading No. H.S. Code Description of goods Rate or amount of supplementary duty (%)
33.07 All H.S. Codes Pre-shave, shaving or aftershave preparations, personal deodorants, bath preparations, depilatories and other perfumery, cosmetic or toilet preparations, not elsewhere specified or included, prepared room deodorisers, (whether or not perfumed or having disinfectant properties). 20
48.13 All H.S. Codes Cigarette paper, whether or not cut to size or in the form of booklets or tubes 60
68.02 All H.S. Codes Granite, marble, travertine, alabaster and other stone 60
69.04 All H.S. Codes Ceramic building bricks, flooring blocks, support or filler tiles and the like 20
69.07 All H.S. Codes Unglazed ceramic flags and paving, hearth or wall tiles; unglazed ceramic mosaic cubes and the like, whether or not on a backing 45
69.08 All H.S. Codes Glazed ceramic flags and paving hearth and wall tiles; glazed ceramic mosaic cubes whether or not on a backing 45
84.15 All H.S. Codes (except

8415.10.10

8415.81.10

8415.82.10

8415.83.10

8415.90.10

8415.90.90)

Air conditioning machines, comprising a motor-driven fan and elements for changing the temperature and humidity, including those machines in which the humidity is not separately regulated and parts thereof (except capital Machinery) 60
  8415.90.10 Parts (imported by air-conditioner manufacturing units) 20
 

 

 

Heading No. H.S. Code Description of goods Rate or amount of supplementary duty (%)
  8415.90.90 parts (imported by importers other than by a manufacturer of air conditioner) 45
84.18 All H.S. Codes (except

8418.61.10

8418.69.10

8418.99.00)

Refrigerators, freezers and other similar articles, heat pumps, refrigerating furniture 30
85.07 8507.10.00 Leadacid battery and electric accumulators 20
  8507.20.90 Other leadacid accumulators 20
87.03 Respective H.S. Codes Motor cars and other motor vehicles including station wagons.  
1) Motorized three-wheelers and auto-rickshaws 20
2) Three-wheelers and auto­rickshaws in CBU with four- stroke engine 20
3) Motorcars including station wagons in CBU (except ambulances)  
a) Cylinder capacity not exceeding 1000 cc 30
b) Cylinder capacity exceeding 1000 cc but not exceeding 1500 cc (except microbus) 45
c) Cylinder capacity exceeding 1500 cc but not exceeding 2000 cc (except microbus) 100
d) Cylinder capacity exceeding 2000 cc but not exceeding 2750 cc 250
 

 

 

Heading No. H.S. Code Description of goods Rate or amount of supplementary duty (%)
    e) Cylinder capacity exceeding 2750 cc but not exceeding 4000 cc 350
    f) Cylinder capacity exceeding 4000 cc 500
    g) Microbus with Cylinder capacity not exceeding 1800 cc 30
    h) Microbus with Cylinder capacity exceeding 1800 cc but not exceeding 2000 cc 60
    4) Motorcars including motor vehicles, station wagons and jeeps in CKD (except four- stroke CNG auto-rickshaws and three-wheelers)  
    a) Motorcars in CKD condition (up to 2000 cc) 30
    b) Others in CKD 45
87.04   Double cabin pickup in CBU condition with minimum four doors  
  8704.21.13

8704.31.13

cylinder capacity from 1001 cc to 1500 cc 30
  8704.21.14

8704.31.14

cylinder capacity from 1501 cc to 2000 cc 60
  8704.21.15

8704.31.15

cylinder capacity from 2001 cc to 2750 cc 100
  8704.21.16

8704.31.16

cylinder capacity from 2751 cc to 4000 cc 350
 

 

 

Heading No. H.S. Code Description of goods Rate or amount of supplementary duty (%)
  8704.21.17

8704.31.17

cylinder capacity from 4001 cc to above 500
87.06 8706.00.31 two stroke auto-rickshaw or chassis fitted with engine of three wheeler 20
  8706.00.32 four stroke auto-rickshaw or chassis with engine of three wheelers 20
87.11 8711.10.11

8711.10.91

8711.20.11

8711.20.91

Motorcycles in CBU condition with four-stroke engine 45
8711.10.21

8711.10.92

8711.20.21

8711.20.92

Motorcycles in CKD condition with four-stroke engine 30
8711.10.19

8711.10.29

8711.10.99

8711.20.19

8711.20.29

8711.20.99

Motorcycle with two-stroke engines ( whether CKD or CBU) 250
93.02

93.07

All H.S Codes Revolver and pistol or other arms ammunitions (except the match weapon and sports ammunitions imported by shooting federation) or sword or knife or spear or other similar things 100
 

 

 

Second Part

Services subject to supplementary duty:

Heading No. Service Code Description of services Rate(%) or amount of supplementary

duty

(1) (2) (3) (4)
  S001.00 Hotel and Restaurant:  
  S001.10 Hotel : 10
S001 S001.20 Restaurant: If alcoholic beverages are supplied along with accommodation, food and beverages, or any kind of “floor show” is organised (even if for only one day in a year) 10
S012 S012.20 SIM Card Supplier:

In case of cellular phone (Mobile/ Fixed Wireless), supply of SIM (Subscriber’s Identity Module) card or RUIM (Removable User Identification Module) card or similar other cards with Microchip, or the usage of Code

Division Multiple Access (CDMA) each time or any other method other than aforementioned cards for the same purpose

Taka 600 for every SIM