Chapter-11_Audit Of Value Added Tax (VAT)

FAQ for VAT

Questions & Answers
Q	Hi, I wonder if you have information about Free Trade Agreements andor any other Trade Agreements that are effective between Bangladesh and foreign countries (Bangladesh-Bhutan, Bankok Agreement, SAPTA, etc ...). Do you provide such information?  If not where could we find it? thanks for your precious help - Md. Abu  Musa
A	Yes, Bangladesh has some FTA. But these services are presently not available here. Sorry for inconvenience.  You have to contact Customs Authority. Address: Customs Wing National Board of Revenue (NBR) Segunbagicha, Dhaka - 1000 Bangladesh
Q	If we submit Form VAT-1GHA  for price approval at our Factory Stage , then -- any necessary to pay VAT to our Depot Stage. (Our MRP is fixed). We are paying VAT  on 23 of MRP process - Fahim Yusuf
A	Yes. Depot is different identity and required to be registered. 23 is for one stage. Other 13 is for other stages. You will get rebate.
Q	I am not getting reference of VAT on House Rent. When it was introduced and the process of paymentdeduction of VAT on house rent. - Shariful Haque
A	Please see the SRO no. 200Ain2010549-VAT, Date: 100610. Service Code: So74.00 It was introduced from 10 June 2008. The person take rental space for commercial use is responsible to add 15% VAT with the rental charge and deduct and deposit to the treasury.
Q	This is to bring to your kind notice that as per the new VDS system inserted by Finance Act 2010, we have to ensure VDS from the bill @ 3% where VAT-11 Challan has been provided @ 15%. At the same time entire amount of VAT to be deducted if the Challan is provided in truncated rate. My Question is;    1. Should I ensure entire amount of VAT as VDS from Electricity Bill of PDB/DPDC? If not where is the reference?   2. Should I ensure VDS @ 3% from the Telephone Bill/Mobile Bill? If not where is the reference?   3. Mean time I have ensured VDS from the above bill but bank is not receiving the net bill even after producing the VDS Challan with Certificate in 12Kha. How should I get refund of the VDS amount? - Liton
A	Ans 1: As the electricity is the trancated based service, according to the proviso of section 6(4Gha), you have to deduct whole amount of VAT at truncated rate. Ans 2: As the Telephone is not the trancated based service, according to the section 6(4Gha), you have to deduct 3% of of total consideration as VAT. Ans 3: This is an administrative problem. Legaly you are right. You can take an instruction from the NBR to solve such administrative problem.
Q	(a) If a company get Information Technology (IT) Services get from Australia and services also provided from australia UK. What will be the VAT application here in case of service receiver in Bangladesh. (b) A Bangladesh registered (foreign) company has a intercompany in singapore (regional office). Intercompany purchased imported goods for Bangladesh Entity and payment made to its (Intercompany) suppliers. Subsequently Singapore give charge to Bangladesh entity as intercompany transaction and Bangladesh Company booked this amount in different accounts head. In this situation is it required to deduct tax ? and which rate?.  (C) Could you please tell me which rate is for withholding VAT for C&F agent bill and freight forwarder bill. Is it required to attached Mushok- 11 with their sales invoices.  - Biplob Banik
A	Answer (a): 15% VAT applicable, as the import of service is taxable from 10 June 2010. Bank will deduct it during release of the bill.  Answer (b): Yes. If it is goods, should cover by Customs Act, 1969. If the supply is of service, it will cover by VAT Act, 1991. The reverse charge will be applicable like question (a).  Answer (c): Standard rate 15%. VAT deductable at TDS at the rate of 3% or one-fifth of total payable if VAT challan is available. Otherwise deduct 15%, whole of the VAT as per latest explanation of Board.
Q	VAT exempted at import stage Assessable  Value  100 Add: VAT               0 Add VAT (ATV)     3 Selling price           130 Value addition          30 Output VAT             4.5 Price of the product including VAT is 134.5 VAT not exempted at import stage Assessable  Value  100 Add: VAT               15 Add VAT (ATV)     3 Selling price           130 Output VAT         19.50 Price of the product including VAT is 149.50 Please confirm the above understanding. - Md. Abu Kawsar Kawsar
A	VAT exempted at import stage Assessable  Value  100 Add: VAT               0 Add VAT (ATV)     3 Selling price           130 Value addition          30 Output VAT             19.5 Price of the product including VAT is 149.5 Credit                    3 Net VAT               16.5 Total VAT Incedence 3 + 16.5 = 19.5 VAT not exempted at import stage Assessable  Value  100 Add: VAT               15 Add VAT (ATV)     3 Selling price           130 Output VAT         19.50 Price of the product including VAT is 149.50 Net VAT          1.5 Total VAT Incedence 15 + 3 + 1.5 = 19.5  This is the art of VAT.
Q	Thank you for your kind support. Request you to provide your response to the following question: As per VAT Act 1991, an importer of service is liable to pay VAT. Say for example, the service provider has submitted an invoice for Tk 100,000. Do the importer of service required to pay VAT on Tk 100,000 i.e., Tk 15,000 then the banker will remit Tk 100,000 or The banker will deduct Tk 15,000 and remit Tk 85,000? - Md. Abu Kawsar Kawsar
A	Depends on your contract condition. If the value is tax inclusive, bank will deduct by tax fraction (R/100+R). If the value is tax exclusive, you have to pay Tk. 100,000 + 15% VAT to bank. Bank will deduct 15% VAT and deposit to treasury and remit Tk 100,000 to the exporter"s bank.
Q	On what value I have to Deduct VAT. for example: Product Value Tk. 100 VAT Added 15% = 115. on What price I have to deduct VAT at source 3%. on 100 or 115?  - Hafizur Rahman
A	Your example is tax exclusive base. You will deduct 3% of VATable value as VAT. This not a rate which is popolarly misunderstood. Your base is Tk. 100. So deduct 3% of base Value. The amount of ductable VAT will be Tk. 3
Q	If land loard provide (owner)VAT-11 in case of commercial office rent. Then what amount we deductc from the bill?  - Fahim Yusuf
A	Without BIN nobody can issue VAT challan. So land loard can not do this. As per law, rent receiver will deduct from the rent (either rent is VAT inclusive or exclusive) @ 15%.
Q	Please findherewith the following quaries & make me confirm: Particulars                   VAT Rate                              Printing Press               15% or 4.5% ?(Explanation) Advertisement in Newspaper              ? Advertisement in Newspaper Agent    ? Procurement provider     3% or 4%    ? 1)Highest rate of Supplementary Duty ? - Mohammad Towhidul Islam
A	Printing Press               15% (service does not listed in the truncated base sro is taxed @ 15% under section 3 of VAT act) Advertisement in Newspaper              15% Advertisement in Newspaper Agent    15% Procurement provider     4% 1)Highest rate of Supplementary Duty  500%
Q	Thanks to u & your surroundings who have given their best efford to build this web-based Helping desk.Hope & belive this proceeding will expand our knowledge as well as fulfill our required quaries & will enlarge this area on related subjects such as import,Export,FERA-1947 & so on.Please for your kind consideration make a confirmation in my Mail-ID about NBR changes from time to time.  Pls.make a solveLinkage: Short Notes:  1)Bonding duration  2)Second Appraisement  3)Provisional & Final Assessment  4)Home Consumption Bill of Entry & Antu Bond Bill Of Entry  - Mohammad Towhidul Islam
A	1)Bonding duration  Ans: 2 yrs. Extedable 6month by Commissioner and further 6 month by NBR.  2)Second Appraisement  Ans: Assesment After araival of goods to the port (Customs Area).  3)Provisional & Final Assessment  Ans: If there is any undesolved matter for assesment, then the assesment is made as provisional assessment. After specific period and fulfilment of condition(s, the assessment made final by customs. When the information relating to assessment is complete and has not taken any special exemption benefit (so called SRO benefit), then the assessment made is final.  4)Home Consumption Bill of Entry & Antu Bond Bill Of Entry
Q	Would you please provide information between special bonded warehouse & bonded warehouse?  - Md Iqbal Zia
A	There are two types of Bonded warehouse. (i) Special Bonded warehouse: Bonded warehouse for 100% export oriented garments industries like, Oven garments, knit garments and sweater industry. (ii) General Bonded warehouse: Bonded warehouse for any 100% export oriented industry other than special bonded warehouse are the General Bonded warehouse. GBW has been further divided into many categories like B2B accessories (deemed), diplomatic, home consumption, shipyard, etc.
Q	We have purchased safety shoes from Bata shoe company for our workers & managers and paid VAT. Can we claim rebate on that paid VAT? Have any reference from VAT lawrules?  - Fahim Yusuf
A	Is it your declared raw material? Is it included in the Value Declaration form? if the answers are YES, you are eligible to get REBATE. Otherwise, answer is NO.
Q	Same company has two different bonded warehouses at different place. Can inventory be transferred inter bonded warehouse for own factory? One company has bonded warehouse. Finished goods have been transferred from such company to customer using another place for warehouse in order to easy shifting. Is it comply the law”    If answer no, any permission is to be taken? - Md Iqbal Zia
A	Ans1: With prior permission, you can do so. Ans2: No, it does not comply the law. Ans3: It should be treated as final supply. You can take written permission from your regulating authority.
Q	1.If a company supply ETP (Effluent Treatment Plant) to EPZ or 100% export company what will be VAT rate? 2. If a company supply ETP (Effluent Treatment Plant) to any company  other than EPZ or 100% export company what will be VAT rate? - Md Iqbal Zia
A	1. Zero rate. It should be treated as export. 2. 15%. The company receiving service will get drawback or credit for export. Probably, you are telling about the service code S021.00
Q	When we prepare mushak 11, in column 4 & 5 we put the SD attributable value and the SD. In column 6 the VATable amount will be the total of column 4 & 5. Is it mandatory to show the amount in column 4 & 5? If yes, then it does not happen all the time that VATable amount will always be the total of column 4 & 5. Suppose, company A  provides IT services to company B. A imports software/hardware and then sell it to B. In such case, how A will fill up mushak 11 while the service value (on which VAT is charged) may include other charges?                                                                            - SK. RAJIB  HAIDER
A	If you prepare the Mushak-11 for goods or service having SD, then filling up the column (4) and (5) are mendatory. If you prepare the Mushak-11 for goods and/or services do not have SD, then you do not need to fill up the column (4) and (5). In this case, you should fill up the column (6) for the base value of VAT. Column (4) and (5) would be blank. You have to follow this process for the products mentioned in the query because they do not have SD.
Q	We paid supplementary duty @20% on Import stage. Do we need to pay more supplementary duty @20% on sale of that product Product name: Lipbum H.S Code: 33.041.000 - MD.ABDUR RAZZAK
A	I think, you are not a manufacturer and your imported goods are commercial goods. In this case, you have not to pay any supplementary duty on the trading stage. SD is exempted on the trading stage. SD is imposed on import, manufacturing and in some services.
Q	What % deduction at source against the head Repair and Maintence - Saleh Ahmed
A	1. If you get/issue Mushak-11 challan showing 15% VAT against supply, the withholding entity will deduct 3% as VAT on the VATable value. 2. If you do not get/issue Mushak-11 challan showing 15% VAT against supply, the withholding entity will deduct 15% as VAT on the VATable value.
Q	Dear Sir; We are purchasing a furniture amounted to 1,47,000 (tax and vat included). How much VAT we should deduct now and what is the deduction rate? Thanks Selim  - Ashraf Khan
A	VAT = VAT inclusive Value/VAT Factor*          = 1,47,000/26          = 5653.85 * VAT factor = VAT inclusive Value/VAT Rate                       = (100+4)/4                       = 104/4                       = 26  Here, VAT rate is 4%
Q	What % of VAT deducted at source against House Rent,Audit Fee ,Repair maintence,Carring chargeand printing charge? - Saleh Ahmed
A	Applicable Rate       Deductible Rate House Rent :            9%                             9% Audit Fee:               15%                             *3% Repair mtnce           15%                             *3% Carring (petroleum)  2.25%                         2.25% Carring (other)         4.5%                           4.5% Printing                    15%                             *3% * In thiese cases, supplies would be accompanied by the VAT Invoice showing 15% VAT. Otherwise, whole 15% would be deducted at source.
Q	I am Silica Gel packet (1gm) manufacturer. I sell Silica gel packets to pharmaceuticals directly. Pharmaceuticals get rebate the VAT which I give. If I sell to a trader who will buy from me with VAT and will also sell to pharmaceuticals with VAT, will he be able to get rebate the VAT which I will give to him? - Saiful Islam Mozumder
A	Yes. Provided, trader has to pay 15% VAT on his supply as you pay.
Q	Dear Taxman,  Many thanks for ur reply on my previous queries. Again i need ur cordial help at the following matter.- Suppose A company "X" purchase raw materials and send it to a sub-contractor "Y" who make the finished products for X. X  receive finished goods  in its factory from Y  and pay conversion charges to Y. Then X dispatch the goods to its warehouse and sell goods to  its distributors. Queries: 1. Can X be treated as Manufacturer (my confusion is that X is not engaged in manufacturing) and accordingly pay 15% manufacturing VAT on declared value of the products? 2. Can X also be treated as Trader (as it distribute goods) as well as manufacturer and levy 2% trading VAT? 3. If the product has a declared value suppose 450, can X sell the product at price more than 450? Suppose, including 15% VAT, the price is 450. While billing to distributor, X determine the actual billing price at 500 including 2% trading VAT. Is this in compliance with VAT laws? I would be really grateful and appreciate ur reply on this matter. Take care. - SK. RAJIB  HAIDER
A	Ans.1: X is not manufacturer. He is proprietor of goods. See Rule 2(1)(JhaJha). He has to pay 15% VAT and declare value to Divisional officer if he wants to get input tax credit that paid to Y (i.e. Contract Manufacturer, [Rule 2(1)(khakha)]). Ans.2: Yes. In this case he is a trader. He may pay 2% VAT, but in this case, he will not get credit. Ans.3: No, he can't do this as per law. But, you know, this is widely practiced though it is not in the line of legal provision. Declared price should be actual price at which the good is sold. See section 5(2).
Q	Dear Sir, Our company used to sale Molasses (by product of Sugar) through auction sale. Applicable rates of VAT, IT & VDS to sale Mollasses are: VAT-15% AIT-5% VAT @ source-3% for auction sale We calculate the above in the following way Molasses-------------------100.00 VAT------------------------  15.00                                           -------- Total with VAT------------115.00 AIT-5% on Total (115)---     5.75 VAT-3% on Total (115)--     3.45                                           --------                                           124.20                                           -------- My question is whether the above calculation is right or if not what will be the right answer. Regards Md. Khaliq-Uz-Zaman Manager, Finance Setabganj Sugar Mills Ltd. - Sidhartha Jain
A	Sorry, your calculation is not correct. Before calculation, you have to know defination of two services related to auction. First: Buyer of auctioned goods (So60.00) and Second: Auctioner (Soo9.00). Auctioner is the person who arrange the auction activity. This person is not required in all auction. This is required in Customs auction. Because, they have to arrange huge amount of auction each month. Now come to your calculation. I assume that you do not appoint any professional auctioner for your action. You do it by yourself. The the calculation is: Sale value                 = 100/- VAT @ 3%             = 3/- Total recievable        = 103/- (This service does not incleded the income tax, thus no comment on AIT)
Q	Dear Sir, We are going to set up a manufacturing industry of welding electrodes. There is stated in column 4 of VAT-1 to write down the unit of the product as stated in BCT. my question is: a) What is the meaning of BCT? b) Where will I get the Chart of BCT? c) What is the unit of Welding Electrode? d) What is the H.S Code of Welding Electrode? - Mamonur Khan
A	Ans (a): BCT means BANGLADESH CUSTOMS TARIFF Ans (b): Follow the link of customs of this site. http://www.taxguidebd.com/national_tariff.php Ans (c) : Kg Ans (d): HS Code: 83111000
Q	Hello Taxman, Would you please clarify my confusion about the following issues... 1. To claim rebate on input tax, is it mandatory to declare price, maintain current account and pay 15% VAT? 2. Manufacturing companies perform above 3 activities to claim rebate. But what about service providers? Without price declaration and current account, can they claim rebate on input tax through monthly VAT return (Mushak-19)? 3. In short, what are the requirements (basically document/accounts) for service providers to claim rebate on input tax? Waiting for ur reply, Taxman. Take care.  - SK. RAJIB  HAIDER
A	Ans. 1: Yes for manufacturing sector. Ans. 2: Yes Ans. 3: Valid VAT invoice or Bill of Entry (for imports)
Q	We want to Sell Furniture in Dhaka, Please advice what is the Current Customs Duty and Other Taxes which a Company has to pay from Dhaka for Importing Furniture. Say 100 is the value of the Goods. Could you give in a break up how much the importer will be paying in terms of Duties and Taxes..The HS Code is 9403-3090. - Nikhil Dhar
A	Your HS Code is not correct. The present BCT does not contain this HS Code. Furnitures are classified under heading 9403 having 10 HS Codes. All thise codes (lines) has the total tax incident of 90.02% tax including CD, RD, VAT, AIT, ATV. Please visit the link http://www.taxguidebd.com/national_tariff.php for detail. You can search the tax incident by HS code or by key word
Q	STE limited is a private limited and has several types business. STE limited intends to introduce Mother and Child chain shop under name "Child & Mother Super Soap" at another place. "Child & Mother Super Soap" is one of the business units under STE LTd. Trade license, Lease agreement was done at the address of Child & Mother Super Soap in the name of STE LTd. I would like to take VAT registration under name "Child & Mother Super Soap". Can I get VAT registration under name "Child & Mother Super Soap"? If not, what procedure is to be followed? - Md Iqbal Zia
A	It should be. But as per present VAT act, you have to take seperate registration. Trade lisence and rental deed may be done in the name of Child and Mother  super shop. You can take CENTRAL REGISTRATION also to avoid the complexities, if you are not involve with manufacturing.
Q	Sir, For your kind information unfortunately I didn't get my previous question's answer, Now my another question is lowest and highest rate of Supplementary duty and custom duty. rgds. rezaul - mohammed kashem
A	Lowest rate of SD is  0% Highest rate of SD is 500% Lowest rate of CD is  0% Highest rate of CD is 25%
Q	আমি জানতে চাই LCD টেলিভিসন এয়ার পোর্ট টেক্স কত টাকা দয়া করে জানাবেন কি - Suresh J
A	Plasma, LCD, TFT, LED and same technology television can be brought one piece per passport under baggage paying specific duty per piece. 18-21 inches       Tk. 7,500/ 22-29 inches       Tk. 15,000/ 30-36 inches       Tk. 20,000/ 37-42 inches       Tk. 30,000/ 43-46 inches       Tk. 50,000/ 47-52 inches       Tk. 70,000/ 53 inches and above Tk. 1,00,000/-
Q	1.What is customs duty?How can we calculate customs      duty? 2 What is PSI ? when we need PSI? 3. What is CRF & CIF? 4. Difference between Customs Bond & Undertaken? - CR  Saha
A	A1. Customs Duty (CD) is the duty at import under Customs Act. It is an ad volerum duty. If the aeable value is Tk. 1000 and CD rate is 5%, the CD = 1000*5% = Tk. 50/- A2. PSI means Pre-shipment Inpection. Before shipment from overseas to import Bangladesh, you need to do PSI. If your product is under mendatory PSI list, you have to do it. Otherwise, you have to pay panalty in adition to duty. A3. CRF - Clean Report Finding, CIF - Cost, Insurance and Freight A4. Customs Bond is a benefit uner which importer get zero duty benefit on import. On the otherhand, Undertaken is a commitment to do something or not to do something ilegal.
Q	When the vat return is to be submitted is case of insurance co.  - Md. Juwel Islam
A	VAT Return for insurance company is to be submitted within 20th day of the next month. It is in force from 9th June 2011.
Q	If anyone make any mistake in code no. of T.R form then what is his remedy? say, code no. should be  1 1133 0010 0311 but coded wrongly   1 1133 0015 0311 - Md. Juwel Islam
A	Problem is small but remeady is very difficult. It can be refunded by the authority (code 0015). But it is not the refund item directly. Merit is there only. Under VAT law, there is no other remeady. You can try under financial rules in CAG office also.
Q	I want to import the following items: 1.Miswak H.S.Code 1211.9092 2. Attar H.S.Code 3303.0020 3.Mehdi(Hina) H.S.Code 9616.2000 and 4.Pan Masala H.S.Code 2106.9090 The goods are of Pakistan origin, shipment from Pakistan to Bangladesh. Hope your goodselves will provide custom duties, vat, A.I.T etc. Thanks & best regards Farooque Ahmed Karachi - Pakistan. - Md.Mehdi Hasan
A	1.Miswak H.S.Code 1211.9099 Customs Duty (CD) @ 12%, Advance Income Tax (AIT) @ 5%, Advance Trade VAT (ATV) @ 3%. Total Tax Incidence (TTI) @ 20.43% 2. Attar H.S.Code 3303.0000 Mehdi(Hina) CD @ 25%, Regulatory Duty (RD) @ 5%, Supplementary Duty (SD) @ 30@, VAT @ 15@, AIT @ 5%, ATV @ 3%. Total Tax Incidence (TTI) @ 104.83% 3. Mehdi (Hina) H.S.Code 9616.2000 CD @ 25%, Regulatory Duty (RD) @ 5%, VAT @ 15@, AIT @ 5%, ATV @ 3%. Total Tax Incidence (TTI) @ 58.58% 4.Pan Masala H.S.Code 2106.9090 CD @ 25%, Regulatory Duty (RD) @ 5%, VAT @ 15@, AIT @ 5%, ATV @ 3%. Total Tax Incidence (TTI) @ 58.58%
Q	As per new circular printing press are under VAT deduction at source under 35 category. but the press who maintain VAT current register and regular vat payer simultaneously he deposit vat before delivery those product. now my question is how we will deduct VAT at source as he paid the such amount at the time of delivey.    - mohammed kashem
A	Though it is discrimination, you have to deduct at source, as per the present law.
Q	Dear Sir We are a manufacturing Ltd. organization. We are purchasing Raw materials by issuing Purchase order. As per general order No.7/Musak/2011 date 18 Aug 2011 which is published by the NBR where section 4 (ummo) described “Any person/organization who are providing to Source VAT deducting authority (Limited organization), they are procurement provider and eventually source VAT will be deducted. In these circumstances, if we deduct 4% source VAT (They are providing 15% Musak-11 challan) and it will non rebate able, so cost will enhance 4%, basically we are not clear about this point We are very much sorry to say, you have not mention any comment on the source VAT chapter in your 7th edition. Please provide some comments on procurement provider definition for your readers. Thenks A.K.M Mezbaul Morshed - ataur rahman
A	A seperate chapter for Deduction at Source is dedicated (Ch 14). Do you kindly see the page no. 726 of 7th edition? Your answer is given here.
Q	Related forms of Price Declaration - doulot akter
A	Mushak-1 is the basic form for price declaration. But there are some aditonal forms in "1" series. If you inform your need and business nature, it would be helpful for me to give you specific answer.
Q	We have got one EPC order from a govt. company(owner) in B'desh funded by World Bank.For all import/purchase of projects materials(other than consumable) shall be borne by  owner. However, from our bill of Taka 100, they will deduct 5.5% as VAT and 5% as Tax and deposit with Govt. So we will get 89.5 taka for a bill of 100 taka. In this case the VAT is charged twice-one from owner and another once from contractor. Further, input credit can not be taken for this 5.5% VAT deduction.The sub-contractor/VAT will also charge VAT on its bills to contractor. Hence, contractor is paying 5.5% VAT plus VAT to sub-contractor. In this case can the Contractor apply for exemption of charging VAT by sub-contractor/Vendor as the project is WB projects and 5.5% VAT is already deducted and deposited to Govt.? Thanks and Regards Kishore - misbah siddiquee
A	Yes. As per provision of the proviso of secttion 6(4kaka) of VAT Act 1991, you can get this facility.
Q	Hello Taxman. My Company is doing export business in Dhaka, and therefore it should be paying zero VAT for the revenue. On the other hand, we are paying VAT to the supplier for our expenses and cost. I wonder if we can submit the mounthly report to NBR so that we can get the VAT refund? Could you please let me know which part of the law I can refer to? Also, I wonder if there is any VAT law in English? Thank you! Ms Kwok - szaman sujon
A	Yes, you can get all taxes back for export. If your company is 100% export oriented industry, it is better to have a Bond license to get easy 0% for all purchases (local + import). If you have not a Bond license, you have to go to Duty Exepmtion and Drawback Office (DEDO) for duty drawback after completion of export. You can refer the sections 3(3), 13, 66, 68, and rules made thereunder for getting 0%. There is an unauthentic english translation of VAT Act, 1991 that I can't refer you. New law (VATA2011 or 2012) is coming in both Bangla & English.
Q	Is Vat on Office rent (as Expense) VDS. For whom name will be deposited vat ? please Explain.  - Md. Afzal Hossain
A	No. It is not VDS. In the name of person getting rent.
Q	WHAT WOULD BE ALL INCLUSIVE CUSTOMS DUTY IN BANGLADESH FOR UNPOLISHED 2'SQFT x 1 12'SQFT SIZE, 1000 PIECES OR 3000 SQFT IN TOTAL OF WHITE MARBLE SLAB WEIGHED ABOUT 9.5 METRIC TON  - Mahmudul Hassan
A	If the profuct is unpolished, unfinished and in block size, the product will be classified in HS Code 2515.11.00 having effective Total Tax incidence of 90.02% on the value. If the product is cut-to-size and finished in nature, Total Tax incidence is 151.69% (HS Code 6802.21.00) on the value of the marble. So now you can calculate the tax amount.
Q	Is VAT chargeable on the amalgamation / merger of two business companies? -
A	No. At present this is not an economic activity under VAT Act 1991. So amalgamation of two or more businesses is not VATable.
Q	Hello, I am a Bangladeshi citizen living in the united states. I want to send one laptop to one of my poor relatives living in banglades by mail for his educational purpose. That poor relatives does not have any ability to pay customs duty and other taxes to receive that laptop computer. My questions are: 1. What is the customs duty rate and other tax rate will be for the laptop if I send that by mail? 2. Is there any way I can prepay all the duty and taxes while mailing that laptop so that my poor relative does not go through any hassel? If yes, can you please let me know the process of advance paying? Your help will be appreciated. Look forward to hearing from you soon. Thank you. Sincerely, Mohammed Razzaque. - Md. Ziauddin Islam Prince
A	1. You can send a laptop to your relative in Bangladesh. If you send it by any passanger using Baggage benefit, there will be no Customs duty and any other taxes. 2. If you send it by courier, it may take some charges depending on its price, weight etc. 3. Laptop is a duty free item at this moment. 4. There is no provision of advance payment. Better, you can send some money to your relative to pay the relevent expenses. 5. Obeying the legal procedure is not hassel. It is responsibility to all.
Q	What will be the tax, if I buy only jewelries for my on-line shop? What is convenience of creating account here? Does it reduce taxes? If yes, what is the full procedure? How can I pay less taxes?  - musarrat jahan
A	1. If you buy jelelry from any online shop inside Bangladesh, Shopper will charge 2% VAT on total value of the juwelry. 2.  If you buy jewelry from any online shop shop outside Bangladesh, Bank will charge 15% VAT on total value of the juwelry during payment of bill.  3. Creating Account here is the advantages of getting answer for your query. This is not a business organization. We have no authority to reduce tax. Only Government and NBR has legal authority to reduce tax liability. 4. As a citizen of the country, we have to pay JUST TAX, not MORE not LESS.
Q	We are commercial paper chemical importer & supplier since 2006 During import we payed following tax CRF value : .75 US$ CD -5% VAT- 15 % AIT -5 % ATV -4 % We sale our product @ 110 - 115 BDT per KG and we dont have Mushak 11 chllan In this case how much VAT we need to charge on our client? How much we need to deposit to Govt VAT account? The client give us bill after 1 & half month latter, in that case how we deposit the VAT? Please advice  - Golam Atawer Dider
A	Some more information like US$ conversion rate are necessary for specific calculation. Better I suggest you to follow the following process: Declare original value during import. Preserve Bill of Entry. After bringing goods in your warehouse, update Mushak-17 and 18 for import info. That means you take credit whatsever you paid to Customs ie VAT and ATV. Declare Value to Divisional Officer for your goods with actual price in which you are selling goods to clients. Issue Mushak-11 to your client along with supply. Update Mushak-17 and 18 for sale info. You will pay as VAT to treasury the amount equals to the diffrenec between sales and import VAT. It can be shown as: Net VAT = Sales Value * 15% - Credit (VAT + ATV paid to Customs) Submit Monthly Return. Any other way you goes will create many problems. VAT means very agressive tax. You may loose every thing!
Q	A Limited Company consist Musak-8 (registration from NBR) but it have no operation {Profit/ (loss)}. The company imposed VAT on Office Rent after registration. Question: When would the company impose VAT on office (space) rent? Regards Sheikh Osman LL.B (Hons), LL.M Company & Income Tax Lawyer Dr Nawab Ali Tower (7th Floor), Suite # w 703-704, 24 Purana Paltan, Dhaka-1000. Cell: 01191-423052, 01678-041249 E-mail: osmanbd29@gmail.com, osmanac29@yahoo.com  - Sheikh Osman
A	VAT on office space rent is imposed when you pay the rent. It is not related to other operation of business. So when the company pay rent, then they will deduct VAT and deposit to treasury.
Q	When would the company impose VAT on office (space) rent? {When means registration Date, Is it Right?}. - Sheikh Osman
A	VAT would be collected(and paid to treasury) by a "registered person".
Q	Dear Sir, I know there is a clause in IT Ordinance 1984 that when a inspector from NBR wants to come any business entity he has to show his identity as a proof of his real official. But when we ask for that identity some NBR official take this negatively. Would you kindly mention which clause it define that they have to show their identity. Advance thanks for any help. With kind regards, Mahbub HP- 01716-128061 - Mahbubur Rahman
A	Pl see section 26 of VAT Act, 1991. About IT ordinance, I cann't help you.
Q	আস-আলাইকুম ওয়া রাহমাতুল্লাহ, আমদের company সয়াবিন তেল Refining /processing করে বাজারজাত করে। আমাদের Factory Khulna. আমরা যখন Factory থেকে sell করি তখন মুসক-১১ ইসু করি। সম্প্রতি আমরা আমরা কেন্দ্রিয় নিবন্ধন নিয়েছি। Dhaka এবং Gazipur এ আমাদের depot আছে। আমার Question Factory থেকে Dhaka/Gazipur depot এ মাল আনতে কি প্রক্রিয়া অবলম্বন করব? Depot থেকে পাইকারি বিক্রয়ের সময় buyer কে মুসক-১১ দেই।  - Mahbub Ahmed
A	You are following correct process during selling goods from Khulna. You have to issue Mushak-11 during supplying goods from Khulna to other depot. Please see VAT SRO No. 644, dt. 07/06/2012, forth chapter of my book.
Q	what is ATV and what is its implication - iqbal Hsan
A	ATV is Avance Trade VAT. It is imposed on all imports by Commercial Importers. It is the VAT due during supply (sale) of goods after import. It is collected in advance at import stage. It is creditable. If importer follows standard process, it does not create any extra tax burden other than advance payment. If he does not follow standard process, his tax burden will be doubled.
Q	Sir, What documents need to show for custom clearance? Is it possible to give payment like paypal, payza, western union etc without L/C, TT? If possible then what documents need to. How much have to pay custom duty for HS code:48182000(facial tissue), weight-336kg, value-usd1500 or depends on us, 1lac pieces? Also want to know about Free Trade Sample. The supplier give me product free sample or gift there is no commercial value. If it is then the quantity, weight and piece, value? your base value calculating 100, 100kg? or 100Tk? If the total price of goods 100tk then the duty have to pay 131.32tk. Is it? How will I calculate? Thank you very much.  - Mahbub Alam
A	Q. What documents need to show for custom clearance? A. Proforma Invoice (PI), Packing List, Bill of Lading/airway bill, LC/TT, VAT Reg Certificate, TIN, IRC, etc Q. Is it possible to give payment like paypal, payza, western union etc without L/C, TT? A. Not yet. You can pay online through www.nbrepayment.org Q. If possible then what documents need to. A. Nothing. Q. How much have to pay custom duty for HS code:48182000(facial tissue), weight-336kg, value-usd1500 or depends on us, 1lac pieces? If it is then the quantity, weight and piece, value? your base value calculating 100, 100kg? or 100Tk? If the total price of goods 100tk then the duty have to pay 131.32tk. Is it? How will I calculate? A. Your Value is: 1500 USD Total Tax Incidence (all taxes together): 131.33% Total duty-tax: [(1500 + PSI + Insurance + Freight + Landing Charges) x conversion rate x 131.33] Q. Also want to know about Free Trade Sample. The supplier give me product free sample or gift there is no commercial value.  Thank you very much. A. You include it in PI and packing list. If possible in LC. Customs may or may not give the facility to release duty free. If they do not  allow, they will add average value for per unit and calculate duty taxes.
Q	Dear sir, We are going to establish a departmental shop. Please clarify my confusion. Assessable value(AV) Tk.50,000.00 CD (25% on AV ) Tk.12,500.00 SD (20% on AV) Tk.12,500.00 RD (5% on AV) Tk. 2,500.00 VAT Vase Value(AV+CD+SD+RD) Tk.77,500.00 Is it Corect? VAT (15% on Vate base value) Tk.11,625.00 Is it correct ATV 4% on {(Vat base value)+(Vat base value)*26.67%} Tk. 3,927.00 Is it corect? So what's to be our selling price if we value add 26.67%. On which value will we impose 4% VAT on selling invoice which we have to provided customer from our shop . How will we collect 15% VAT at impost stage from customer. Yeasin  - Yeasin Kabir
A	Example you mentioned is given in my book. Example 6.1. Isn't it? AS  a business, you know better what would be the selling price. You know in which price, your customer will buy your product. You fix price following your policy. Then calculate VAT. Get credit whatsever paid as VAT and ATV if you pay 15% on sales. If you pay 4% on sales, you will not get credit.
Q	What is tariff value? - tutul. Mazumder
A	Tariff value is a fixed value of any product or service for the purposes of imposition of tax (Customs Duty and VAT). For example, you can buy a SIM with connection by 100/-. Government fixed the tariff value of SIM as Tk. 543.00. On the other hand, you may buy 1000ml mango juice by Tk,120 from market. But tariff value is fixed as Tk. 15 only. VAT will be calculated on these tariff value at a rate of 15%.
Q	Assalamualikum ADMIN , I am so much grateful to you for running such kind of BENEFICIAL site for us . Now , I have a query about the C & F AGENT . What is the requirement for anyone to get C & F License ? Please mention in details . Thank you - Md. Imtiaj Hasan
A	Pl read the C&F Agent licensing rules, 2009. Here the links for you ready reference.  http://taxguidebd.com/mypan/Media/customs/sro/SRO2401.pdf http://cbc.gov.bd/images/SRO/150_2009.pdf
Q	What is back to back L/C ? - tutul. Mazumder
A	When one LC is opened against an LC, the later is called BBLC. Pl see import policy for more information.
Q	Dear sir, what documents need to open L/C? Is it need CnF agent although i have IRC,vat registration, TIN etc? HS:48182000 custom duty increase or decrease this 2013-2014. And how much per kg our govt. required value? rabby@in.com - Mahbub Alam
A	Documents needed for LC are: TIN BIN PI IRC ---- You need to appoint  C&F to clear consignment. ---- No change in duty for 48182000 product  in budget 2013-14 ---- It's not possible for us to provide you valuation data before starting ASYCUDA World in near future.
Q	Dear Sir, I have a problem regarding VDS- Sponsorship services. Sponsor was made by a company in June'13 but invoice was raised for payment by the sponsor taking foundation in July'13 and payment will be made in August'13. So in this case is it VDS applicable as a VDS- Sponsorship services??? Thanks Muhammad Nur Hossain Articled Student Mo. No# 01917373806 - Nur Hossain
A	As per section 4 and 6(3), this supply is taxable.
Q	If we want to hire an international consultant by DPHE i.e. thru GoB with full funding from UNICEF can we get tax exemption for that process? As we know there is tax exemption for UN related organizations, if this could be applicable in this case? - Firoza Akhter
A	Generally donor agencies do not pay duty taxes. For tax expenditure in foreign aided project, Government has to feed the tax amount in project. There is no general exemption for such project. But if Governement decides to give exemption under section 14 of VAT Act, 1991, it is possible.
Q	A company already took a vat registration under its dhaka head office but its godown cum factory is in pabna. now it produces goods in 3rd party's factory but products wrapping, labeling, branding are completed in its own godown. we will market our products using our own brand name. our vat catagory is supplier of miscellaneous goods. products are mustard oil, ghee & vermicelli. now my question is - 1. are we manufacturer or supplier? 2. do we need modify vat registration and if yes under which adress i.e. pabna or dhaka. 3. are these three products under tarrif value? 4. what will be our vat rate? - Anupam Singha Chowdhury anupamebl2010@gmail.com
A	Ans Q1: You may register as Supplier (mfg), Supplier (Trader) and Importer (if import anything) Ans Q2: Yes. For Pabna office under unit registration. If you want to get central registration, it is possible to maintain present registration in Dhaka. Ans Q3: Mustard oil is exempt. For detail, see exempt list and tariff value list. Ans Q4: 15% VAT rate.
Q	Whether a subsidiary Company ( manufacturing in nature) can get rebate on VDS done on Royalty fee to Parent Company which situated in abroad? - Md. Monzurul Karim
A	No. As per VAT Act, 1991its not permitted. Because, this is not included in the definition of Input. But under VAT act, 2012, you will be eligible to offset this VAT.
Q	Dear Concern, I'm working with a ready made garments related Liaison office. Regarding order processing and on production stage we have to received many sample from our principle office. Every month our courier service claim lot of money for duty and charges. But they can't provide us specific sample duty rule and procedure. So, could you help to provide real duty structure and procedure of RMG sample? Thanks Kabir  - H M Kabir
A	There is no special duty structure for RMG sample. It is covered under Bangladesh Customs Tariff Schedule (BCTS). You can get help from the following link: http://taxguidebd.com/national_tariff.php
Q	Hi there, would you be able to confirm the import duty for refined palm oil? Cheers. - Li Ying Chong
A	Import duty of refined palm oil (HS Code: 1511.90.90) is 0%. You can serach for more results in http://taxguidebd.com/national_tariff.php
Q	Hello. I have a trading business. Have any vat of Garments accessories good export? - mamun
A	Export is Zero rated. If you export directly to abroad, no VAT will be charged on Export point. If you do deemed export, it is also Zero rated. In this cAse, you need to follow some procedure like Bonded Warehouse or Drawback, etc. If you are in a trading business for garments accessories, you have to follow some other procedures. Please communicate concern divisional officer where you are registered to get exact suggestion depending on your requirement.
Q	Sir, We Plan to provide Consulatncy Services to a Company in Bangladesh by sending experts to Bangladesh. 1. What shall be the taxes payable by us as a Company, under different heads. 2. Will our experts be liable for any personnel tax in Bangladesh? 3. How the taxes should be built up in the invoice to be raised from India, if the Contract Value is inclusive of tax amount. Thanks and Regards. Pradeep Soni - PRADEEP SONI
A	VAT 15% Income Tax service is not available here at this moment   No need to bill it using VAT invoice. It will be deducted at source (withholding VAT) by bank during transfer of money to you account through banking channel In case of inclusive value, VAT = Value x (15/115)
Q	Sir, As a non profit organization, we purchased a goods TK. 100.00 & our Sales price is TK. 100.00. How we can calculate the VAT in stander method or 26.67% method. Regards Milon  - Milon
A	You should follow Standard Method. Otherwise, you have to pay a lot of VAT. Method is: Input tax: 15/- Output tax: 15/- Net pay: Output tax - input tax = 15-15=0 Your return will show 0 output tax. No problem with this method if you follow standard method. If you follow truncated method, situation will be: Case 1: You purchased by paying 15% VAT by pay 4% output tax Input tax: 15/  Output tax: 4 Credit: 0  Net tax = 4-0=4 Total tax paid by you=15 +4=19/- Case 2: You purchased by paying 4% VAT and pay 4% output tax Input tax: 4/  Output tax: 4 Credit: 0  Net tax = 4-0=4 Total tax paid by you=4 +4=8/-
Q	1. Dear sir with due respect i have to know some soluation urgently. 1.a motorcycle assembler who import ckd motorcycle and its selling system their finishd product by some own showroom as well as diffrent delars did they get central registration? If possible so how can get. 2.what is easy system for motocycle assembler to pay vat upto final consumer and wt will be vat rate every step?and wt will be process of their spare parts and service sales and its vat rate?  - ajoy biswas mintu
A	A1: yes, it is possible if the owner(s) of assemble facoty and showrooms are the same. If it is a company, showrooms should be owned by the same company. A2. Follow standard 15% rate. I think it is the easiest and would be beneficiary for you interms of tax amount to be paid. Other truncated rate will create problem in VAT chain and finally credit.
Q	If house rent is 30000 tk inclusive Vat and tax, how much will be the base value and how I calculate it by myself? -
A	VAT will be 2477.06/- For detail, please calculate by using NBR's official VAT Calculator at: http://nbr.gov.bd/calculator.php?lan=eng
Q	I have not found any definition of "Service" as per Vat Act.In terms of Section 2(g) of the Vat Act,"taxable service have been defined.But "definition" of "service" has not been defined. Could you please explain where I can find the definition of "service". If Branch is providing service to its holding company,will it be considered as "service".  - SABYASACHI  CHAKRABORTY
A	Its not defined. Actually, its not required to defined. As VAT is imposed on Goods and Service as per VATA1991, and Goods is defined, the service is anything otherthan goods.
Q	I have a book store. Opened in March 2014. My yearly revenue is somewhat 2000000.00 (Twenty Lac). Now my qn is how much percentage do i have to pay for VAT? my second qn is... is books VAT applicable at all? I do have stationeries as well. But my main selling item is Books. i dont take any VAT from customers. They dont buy books if i apply VAT on books. So can you please explain me in details. Thanks - MD IQUEBAL HOSSAIN
A	Stationaries are subject to VAT. Reference & text books are exempt Other books are subject to VAT You can use inclussive price VAT (whatever is the price, is 15% VAT Inclusive) so that consumer can not ask about VAT. If you do not collect VAT from, consumer, you have to pay from yourself as you have collected it. So take it with proper importance. As your yearly turnover is 20 lakh, you can enlisted for turnover tax and pay 3% turnover tax on 20 lakh that means 60 thousand per year.  You have to be registered for VAT or be enlisted for turnover tax with VAT Division office of your area. Thanks
Q	We are a Malaysian company entered into a Service Agreement with a Bangladesh company. Under the Service Agreement, the Malaysian company will invoice every month for technical service fee. Please advise the applicable taxes to be deducted from the overseas payment to the Malaysian company by the Bangladesh company/bank, such as: 1) VAT - is this applicable and if so what is the rate? 2) Withholding tax for technical fee to Malaysian company under the DTA between Malaysia and Bangladesh - how to apply for tax benefit under DTA? 3) Any corporate tax or other taxes to be paid by the Malaysian company? FYI, the Malaysian company does not have PE in Bangladesh. Thank you.  -
A	Answer to your question 1: This type of service is defined as "Import of service". Here VAT is applicable and it should be charged on Importer and collected by Bank during payment of the price of the service. If your price is VAT inclusive, than it could be calculated as: Total Price x 15/115 (VAT rate is 15%). If your proce is exclusive of VAT, than importer (Bangladeshi Company) will pay Price + 15% VAT on Price (to be calculated as Price x 15%) to the Bank and bank will send you the price and deduct VAT and deposit to the treasury.  Your other two questions are related to Income tax. Presently we do not provide any service on Income Tax. Sorry for that. But, within few months, we will start service on Income Tax also. Thanks
Q	I am very interested to know that what types of Tax/custom are applicable for imported used car. How many percent tax/custom I have to pay during clearance? 5 years old Petrol car 1500 cc. Thanking you in advance Abdullah - mamun hossain
A	To provide answer of this question, we need some aditional information, like (a) Is it a sedan car? (b) Which is the manufacturing country and from where you are interested to import? (c) Is it importing under Transfer of Residence facility or is a regular import? (d) if it is a regular import, do you have required legal documents mendatory for import? Waiting to hear from you.
Q	enrgy efficent component manufacture company get loan from bank and all kind work running for going construction,is there all purchase company give all kind vat and tax ? b.)does bank can cut vat and other tax charge from project loan account where as company still not go production or income ? - samapta rajbongshi
A	yes. can
Q	Few companies in our country are providing subsidised/at cost lunch facilities to their employees. Foods are cooked at company's premises/kichen. Raw materials are purchased from local market/Departmental store like Swapno/Agora etc. Whether these services/facilities will be subject to VAT or will fall under service category of Hotel & Restaurent? Do we have any Referencne in this regards? - Md. Mohsin
A	You have to purchase raw meterials paying VAT as appropriate. The cost of this food will be added to the sales proceeds of your product (subsidy part.). I think, no VAT will be imposed on the foods of that type.
Q	It will be good for me if you give me the following question answer, A. What is Tax rate (%) & VAT rate (%) for non profit organization? B. What is Tax rate (%) & VAT rate (%) for management consultancy firm? Thank you - Mazharul Islam
A	For Tax: Tax Rate depends on Annual Income. Please consult income tax department for detail. Income Tax service is presently not available here. For VAT: Question A: If it make transaction, and service is VAT-able, then 15% VAT is applicable. Question B: 15%