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| Corporate practice bd |
Procedure for levying VAT on taxable imports.
The same procedure and time at which the customs commissioner or customs officer collects import duty under the Customs Act, will levy VAT on taxable imports even if import duty is not applicable.
Determining the value of taxable import.
The value of any taxable import shall be the sum of the following amounts, namely: - (A) the amount of goods assessed for the purpose of imposing import duty under the Customs Act; And (B) Payable on import of goods, if any, import duty, supplementary duty and other taxes (excluding VAT and advance income tax).
Determining the value of re-imported goods.
In case of re-importing the goods after export, if the shape, nature, features and quality of the product remain unchanged, then the value added after the repair of the product is determined by adding insurance, rent and landing charges. Will be.
Imports for export.
If a product is brought into Bangladesh for consumption without redemption or concession, the product will not be taxable.
Payment and adjustment of advance tax during importation.
(1) Every registered or non-registered or enlisted person shall pay in advance the VAT or turnover tax payable on the supply of imported goods for the purpose of his economic activities at the rate mentioned in sub-section (2).
(2) Advance tax shall be payable at the rate of 3 (three) percent of the taxable import value in the same time and manner in which VAT is levied on taxable import.
(3) Every registered or listed importer who has paid advance tax may, in the prescribed manner, accept the deduction adjustment equal to the amount of advance tax paid on the VAT filing of the relevant tax term.
(4) A person who has paid advance tax but is not registered or enlisted may apply to the Commissioner for refund of advance tax in the prescribed manner.
(5) The Commissioner shall, after receiving the application, dispose of it in the prescribed manner. Section ‘B’ - In case of general supply
32. Determination of the value of the taxable supply.
(1) Subject to the provisions of this section, the supply value shall be the amount obtained by deducting the amount equal to the tax-fraction of the taxable supply from the taxable supply.
(2) The taxable supply of imported services shall be the price of the supply or its fair market value if the supplier and the supplier are related.
(3) The value of the taxable supply supplied by a registered person to his associates other than the subject prescribed under sub-section (6) shall be the value of the tax-fraction deductible from the fair market value of such supply, if: (A) the supply is unconditional or its stakes are less than the fair market value; And (B) The said associate is not entitled to receive tax rebate on all materials arising out of such supply.
(4) Unless otherwise determined, the value of the tax-free supply shall be nil.
(5) The value of any supply other than taxable supply shall be the supply wager.
(6) The price of taxable supplies relating to the sale of residential buildings shall be fixed in the prescribed manner.
(7) If a partner of a residential building constructed in a joint venture for property development provides a taxable supply of immovable property to a land owner, the value of such supply shall be fixed in the prescribed manner.
Explanation: In this section: (A) "residential building" means any building intended or suitable for living, and shall include garage or similar premises; But shall not include buildings or parts of buildings used as commercial housing; B) "commercial housing" means: (Ii) any hotel, motel, inn, boarding house, guest house, hostel or similar institution where four or more persons are accommodated or overnight in exchange for money; Or (Ii) any accommodation which is not the principal or permanent residence of any person and which is provided for the purpose of residence of any person; But it will not include student hostels used as part of a recognized educational institution.
The period for payment of VAT on taxable supplies.
(1) VAT levied on any taxable supply shall be payable at the time of occurrence of any of the following functions, namely:
(A) when supplies are provided;
(B) when supply-related invoices are issued; Or
(C) When part or all of the loan is accepted.
(2) VAT levied on a hierarchical or periodic supply, regarded as a separate supply sequence, shall be payable at the time of occurrence of any of the following functions, namely:
(A) when separate invoices are issued against each of the said supplies;
(B) when part or all of the receivable is received against each of such supplies;
(C) when the price is payable against the hierarchical supply; Or
(D) The first day of the tax period which is related to the tax payable, if the amount payable at that time can be confirmed.
(3) In spite of the provisions of sub-section (2), if any product (e.g. water, gas, oil or electricity) or service is supplied sequentially or periodically through the distribution network, on the date on which the invoice is issued against each of such supplies, VAT levied must be paid within 90 (ninety) days.
Sequential or periodic supply.
(1) Each supply of sequential or periodic supply shall be treated as a separate supply.
(2) If each supply of sequential or periodic supply cannot be immediately separated, such supply shall be deemed to be a separate supply cycle, each consistent with the proportion of the said supply and with which each individual part of the periodic supply is proportional.
(3) In the case of each part of the provision relating to the right to use the lease or property, the continued period of such use of the lease or property shall be deemed to be the period of supply.
Single and Multiple Supplies.
(A) each supply shall be generally considered separate and independent;
(B) the characteristic supply of a single supply from an economic point of view cannot be artificially divided;
(C) in order to determine whether the supply is a single supply or more than one individual supply, the necessary features of the transaction must be ascertained;
(D) if the supply consists of one or more components, it shall be a single supply, and the other components shall be deemed to be part of that single supply;
(E) A supply shall be deemed to be a supporter of the original supply, if it is not the main subject to the recipient itself but the main subject supplied as a means of enjoyment. Section ‘C’ - In case of special supplies
Sales of an organization as an ongoing business.
(1) If a person transfers an organization as an ongoing business to Bangladesh in the course of economic activities, such transfer shall be deemed to be a single supply and such a single supply shall not be considered as a supply in Bangladesh.
(2) In the case of application of the provisions of sub-section (1), the business must be acquired by the operating business for the purpose that the economic activity will continue after the sale and the buyer must fully acquire whatever is required for the continued conduct of the economic activity thus transferred.
(3) If a part of an ongoing business organization is manageable separately, that part shall be treated as a separate economic activity.
(4) In the case of applicability of the provisions of sub-section (1), for the purpose of determining the availability of material tax rebate of the supplier,
(A) the materials provided for the services received for the transfer shall be determined in the sequence of other activities of the taxpayer; And.
(B) The value of the transfer shall not be included in the dis countable ratio determined under section 46.
(5) No person shall transfer any running business without paying all the taxes and arrears payable.
(6) Notwithstanding the provisions of sub-section (5), subject to prescribed conditions and limits, the Commissioner may grant such transfer if the buyer submits an unconditional bank guarantee from any scheduled bank for payment of all taxes due and arrears.
(6) Pursuant to the provisions of sub-section (1), the buyer shall be deemed to be the successor of the supplier from the date of transfer and the buyer shall provide necessary information to the supplier for proper compliance of this Act and the Board may formulate necessary rules to ensure the provision of such information.
Rights (rights), future purchase or sale rights (options), and vouchers. His bet will be equal to the amount if there is an additional bet after the exercise of rights.
(2) If a voucher is accepted for the payment of the full or partial price of a supply, the bet of that supply shall be the value of the value remaining after deducting the value of the voucher.
(3) Sub-section (2) shall not apply if no voucher is provided taxable. Explanation: In this section, "voucher" means any receipt, ticket, acknowledgment, or similar document issued electronically whose carrier acquires the right to supply goods, services, or immovable property, but shall not include postage stamps or revenue stamps.
Supply of per-paid telecommunication goods or services.
(1) If any telecommunication goods or services are supplied to the telecommunication intermediary by the supplier of any per-paid telecommunication goods at a discount, the price of the said supply shall be calculated with the said discount: Provided, however, that this section shall not apply to the supply of telecommunication goods or services by one telecommunication provider to any other telecommunication provider.