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| Corporate practice bd |
When is the tax deduction applicable at source?
Deduction at source is applicable from the supply received as part of the economic activities performed in the following cases, viz.
01.Contrary to
that agreement
02.Through tender
03. Contrary to the work order
When tax deduction at source is not applicable?
01.Tax deduction at source will not apply in the following cases, namely:
02.Any supply worth up to 10 (ten) thousand rupees
03.Supplied by the cutter at any other source
04. Exempt
purchase
05. Purchase
with zero rate
06. Purchase executed by any means other than contract, tender or work order
How much VAT will be deducted at source?
Maximum one-third of the total VAT applicable on deductible supply at source can be deducted at VAT source.
• No minimum
amount has been fixed for cutting at source. As a result, any amount lower than
the maximum one-third can be deducted at source. However, there is no chance of
it being zero.
Limitations of the cutting entity at the source
01. Do not accept any supply under contract, tender or work order from any unregistered VAT deductible entity at source.
02 . Do not accept VAT-8.3 invoice with certificate applicable for deduction at
supplier source.
03. Do not pay the price even if the supply is received without VAT-8.3 invoice of unregistered person or applicable certificate for any reason.
Supplier's Responsibility for Curable Supplies at Source
01. If the supplier is a source-cutting entity itself, do not cut from its source
to any other source-cutting source. As a result, in this case, the supplier
does not have to do any activities related to cutting at source
02. If the supplier is not a source cutter, he will first check to see if the
recipient is a source cutter.
03. If the supplier is not a source-cutting entity, then he
does not have to undertake any activities related to source-cutting.
04. If the supplier is a deductible at source, then the supplier has to pay the
"maximum amount of tax deductible at source" part of the tax
deduction certificate at source at the source of the tax invoice (VAT-8.3)
issued in favor of his respective supplier. Divide the total amount of VAT by 3
and write the quotient here. If this part of the invoice is not filled, the
deduct or will not accept the supply at the source or even if he does, the bill
will not be paid and no deduction will be made at the source.
05.Within 6 months of supply, a “Source Tax Deduction Certificate” in VAT-6.8 form
must be obtained from the source deductible entity. Only after deducting
VAT-6.8 within 6 months can the deductible adjustment be made. After 6 months
it will become obsolete
06.The supplier shall make a deductible adjustment in the submission of the tax receipt for the tax period (of course within 6 months of delivery) of the said certificate.
Responsibility of source cutter (supply recipient) in case of cutable supply at source
01. Cutters at registered sources
02.The cutter at the registered source will pay the bill within 6 months of
receiving the supply. Otherwise the supplier will not be able to adjust the
amount deducted from the source. This will be his financial loss
03. Issue a source tax deduction certificate in VAT-7.8 in favor of the supplier
within 3 working days of source deduction.
A certificate may be issued in favor of multiple suppliers
01. He does not have to deposit the money deducted at source
in the bank separately. It will be calculated together with all the accounts of
the month and will be credited as the total tax with the submission
02. The source cutter will make an incremental adjustment in
the filing of that month for the deducted VAT.
03. He will receive a rebate on the total VAT mentioned in VAT-8.3
04. There is no need to send a copy of VAT-8.6 to the VAT office at the registered
source. However, in accordance with the general provisions of sub-section (1)
of section 106, the copy cutter at source must be kept in his office for 5
years.
Unregistered Source Cutters:
Those whose bills are not processed by the Accounting Officer The cutter at unregistered source must also pay the bill and issue Form VAT-7.8 certificate within 6 months of receiving the supply. Otherwise the supplier will not be able to adjust the amount deducted from the source. This will be his financial loss
Since the deductor at unregistered source does not have deposit, he / she has to deposit the deducted money separately in the bank.
It has to be deposited in the government treasury through treasury invoice
within 15 days of deduction at source
Deposit money must be deposited in the government treasury
along with the one registered under the Commissionerate of Customs, Excise and
VAT.
VAT levied at source deposited in government treasury Economic Code:
1/1133/0000/0311
Operational Code of 12 VAT Commissionerates:
(1) Customs, Excise and VAT Commissionerate, Khulna - 0001
(2) Commissionerate of Customs, Excise and VAT, Jessore -
0005
(3) Large taxpayer unit - VAT - 0006
(4) Commissionerate of Customs, Excise and VAT, Dhaka
(South) - 0010
(5) Commissionerate of Customs, Excise and VAT, Dhaka
(North) - 0015
(6) Customs, Excise and VAT Commissionerate, Sylhet - 0017
(6) Commissionerate of Customs, Excise and VAT, Rajshahi -
0020
(6) Customs, Excise and VAT Commissionerate, Chittagong -
0025
(9) Commissionerate of Customs, Excise and VAT, Dhaka (East)
- 0030
(10) Commissionerate of Customs, Excise and VAT, Dhaka
(West) - 0035
(11) Customs, Excise and VAT Commissionerate, Comilla - 0040
(12) Customs, Excise and VAT Commissionerate, Rangpur - 0045
By looking at the Registration Certificate of the supplier (VAT-2.3) or from
the website of NBR () it will be known which supplier is registered under which
commissionerate.
A
certificate must be issued in VAT-7.8 form within 3 working days of submission.
A certificate may be issued in favor of multiple suppliers
• Taxpayer at source does not have to submit any report to
VAT department if he / she submits the amount deducted online to the government
treasury.
01. If the source tax deductor deposits the deducted money in the traditional
manner without depositing it online in the treasury, then the information on submission
of deducted VAT (including treasury invoice and source tax deduction
certificate) to the nearest value added tax office within 7 (seven) working
days of VAT-7.8 issue. To be sent. However, if the VAT online system and the
payment system of Bangladesh Bank can be integrated, then the information of
the money deposited in the traditional way can also be found online. In that
case it will not be necessary to send the information of the uncut source
cutter and the source cutter to the VAT department.