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| Corporate practice bd |
Where the taxable supply is paid by means of a sales instrument, meter, or any other automatic device and the payment for the said supply is made in the prescribed manner, the tax shall be payable at the time of payment to the supplier by the person receiving the supply.
Relevant part of the rules
Adjustment and refund of advance tax paid at the import stage.―
(1) A registered or enlisted person paying advance tax at the import stage may make all the advance tax deduction adjustment paid in the submission of tax returns mentioned in sub-section (3) of section 31.
(2) For the purpose of sub-rule (1), the registered or enlisted person shall make the deductible adjustments by deducting all the advance tax paid from the total tax payable for the tax period concerned.
(3) The person paying advance tax at the import stage may apply to the Commissioner for a refund of all the advance tax paid in the following conditions and manner, namely: -
(A) he must be the last consumer of the imported goods and he cannot transfer the said goods to anyone else;
(B) within 60 (sixty) days from the date on which the advance tax is to be paid, he shall apply online along with any of the Commissioners nearest to the form “VAT-4.1”;
(C) At the end of the verification of the application received by the Commissioner, subject to proper receipt, within 15 (fifteen) days of the receipt of the application, the applicant will issue a cross-check, granting the refund in favor of the applicant or order the transfer of the sanctioned money to the applicant's bank.
Determining the price of taxable supply without collateral.
(1) In case of supply under sub-section (4) of section 32, a registered person may provide a maximum value of 20 (twenty) thousand TK as a sample in any financial year.
(2) For the purpose of sub-rule (1), a registered person may, in one financial year, display a sample of the money as described in that sub-rule as a zero deposit by providing one or more.
(3) The money referred to in sub-rule (1) shall be determined by the fair market price.
Payment of VAT on the sale of residential buildings.
(1) The value of the taxable supply relating to the sale of residential buildings other than the provisions mentioned in sub-rule (2) shall be 50 (fifty) percent of the value of such supply.
(2) In the case of development of a residential building through a joint venture, the transfer of possession of the immovable property to the owner of the developing land of such enterprise shall be deemed to be a supply and the value of such supply shall be 50 (fifty) percent of the fair market value of the supply.
Note: The transfer of possession to a land owned by a joint venture in property development shall be deemed to be a sale of immovable property.
Procedure for sale of ongoing business.
(1) Unconditional and uninterrupted bank guarantee of the bank for the total amount of tax and arrears payable through joint application in buyer and seller form "VAT-4.2" of any ongoing business. Will submit earlier along with the Commissioner.
(2) The Commissioner shall, within 7 (seven) days of receipt of the application, give permission for the sale of the running business subject to proper receipt at the end of verification of the submitted bank guarantee.
(3) The seller of the current business shall provide the following information to the buyer of that business, namely: -
(A) the latest updated information regarding ownership;
(B) full financial statements;
(C) details of all assets;
(D) details of all liabilities;
(E) information about the case;
(F) details of registrations, licenses, etc. of various government departments; And
(G) Other relevant information.
Procedure for receiving discounts by the person receiving or using the telecommunication services paid in advance.― (1) Subject to the following provisions of this rule, subject to the following proofs, you may avail the tax rebate for advance paid materials, viz.
(A) acknowledgment of receipt of payment issued by the supplier in favor of the recipient against the payment of the price;
(B) if the price paid in advance is more than Rs. Oh
(C) Documents to prove that the price paid in advance is a fair market value.
(2) The commercial contract executed between the supplier and the recipient of the supply and the price stated therein shall be notified to the Commissioner in advance.
Procedure for sale of property in repayment of the loan by the unregistered creditor.
(1) Unregistered creditor shall make a request to the concerned commissioner for assessment of tax before selling the liable property for recovery of debt.
(2) The Commissioner shall, within 7 (seven) days of receipt of the request under sub-rule (1), determine the amount of tax applicable under the law and this rule and inform the unregistered creditor specifying the time and method of payment.
(3) The unregistered creditor shall pay the said tax and inform the Commissioner.
(4) If an unregistered creditor violates the provisions of this rule, the law and the provisions of these rules shall apply to him as if he were a registered person.
What is cutting at the source?
The buyer is the real source of VAT. The person registered in the VAT system collects the tax from the buyer and deposits it in the government treasury. This is the normal method of VAT. In some exceptional cases, in order to facilitate the collection of revenue, the buyer is obliged to pay a portion of the tax paid to the government treasury without deducting it from the seller. This process is considered as cutting at the source.
What is the purpose of cutting at the source?
Increase tax compliance
Simplify VAT collection procedures
Reduce existing risks in the VAT collection system
Ensure invoice issue in each transaction of the supply cycle
Who will cut at the source?
Not all registered persons are responsible for cutting at the source. Those who are responsible for cutting at the source are called those who cut at the source. Institutions of the following entities are responsible for deducting VAT at the source.
1) Any government entity, such as:
(A) the Government or any of its Ministries, Departments, or Offices
(B) any semi-government or autonomous body
(C) any state-owned institution
(D) Local authorities, councils, or similar bodies
2) Any non-governmental organization approved by the Bureau of NGO Affairs or the Department of Social Services
3) Any bank, insurance company, or similar financial institution
4) Any post-secondary educational institution
5) A public limited company, and
6) Institutions under the larger taxpayer unit (value-added tax)