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| Corporate practice bd |
Why register or enlist?
01.To conduct economic
activities
02.To gain legal legitimacy
of taxable business
03.To
gain business recognition as well as to establish the image of the business
04.To
establish the rule of law
Who will be registered or enrolled?
(A) .a person "will be registered under the value added tax. Person refers to the
following attachments, namely:
(B). normal person
(C) .Any company
(d).An individual
association
(E).Any
government entity
(F).Any
foreign government or any department or official appointed by it
(G).Any
inter-country and international organization
(H).Joint venture or similar venture in property development.
When to register or enlist?
If the taxable person exceeds the prescribed limit of annual turnover of taxable economic activities and is willing to accept registration voluntarily, registration or enrollment should be accepted as per applicability. VAT registration is required regardless of turnover in business dealing with supplies where supplementary duty is applicable.
When is it not necessary to register or enroll?
The following are not required to be registered or enlisted, e.g.
01. No registration is
required if the annual turnover is below the registration limit but you can
register voluntarily.
02. Enrollment is not
required if the annual turnover is below the enrollment limit
03.There is no need to
register or enlist when producing and supplying exempt products / services.
However, BIN is required to conduct certain activities such as import or export. That is why registration has to be accepted. Only VAT registration can be accepted voluntarily. Voluntary turnover tax enrollment cannot be accepted.
Documents, fees and renewal applicable for registration
Documents:
No documents of any kind are required for registration or enrollment under the
new law. Under the 1991 Act, documents like trade license, memorandum, IRC, ERC
etc. are required but the new law does not require such documents. Only
applicable information has to be provided in VAT-2.1 form.
Fees:
Under the new law, there is no need to pay any fee for VAT registration or
turnover tax.
Renewal:
Once registered, enrollment is never required. It will continue to be effective until canceled.
To which officer should the application be submitted and within how many days
of submission or registration will be available?
Application for
registration must be submitted to the Commissioner.
After
the submission of the application, if the information given in the application
is found to be correct in the initial verification, registration or enrollment
will be provided within 3 working days. If the information provided is not
found to be correct, the applicant will be contacted from the contact center so
that he can fill in all the information correctly and submit. Registration or
enrollment will not be provided if accurate information is not available.
Although there is a provision of 3 working days in the rules, if the application is filled with the correct information properly, in case of online application, registration or enrollment can be obtained immediately. If you apply on paper, it will be scanned and sent to Central Processing Center. After entering the data there, it will be uploaded to the computer system and then registration or enrollment will be created. As a result, in case of online application, quick registration or enrollment will be available.
Demonstration of registration certificate
•
Every registered or enlisted person should display the VAT registration
certificate or turnover tax certificate or its attested copy in a specific
place of economic activity in such a way that it is easily visible to all.
Duplicate withdrawal of lost registration or enrollment certificate
(1) .If for any reason VAT registration certificate or turnover tax enrollment
is lost or damaged, there is no need to forge copy of VAT registration
certificate or turnover tax enrollment.
(2). From VAT online system you can print it as required
The enrollment limit is a limit of Rs. However, the following values will not
be included in this range, namely: -
01. Exemption supply cost
02. Sale value of capital
assets
03. The selling price
of an institution or part of an economic activity
04.The value of supplies
made as a result of the permanent cessation of economic activity
In
other words, if a person's 12-month taxable supply exceeds the limit of Rs 30
lakh but not above tk. 60 lakh, then he has to be listed for turnover tax.
Registration limit
Registration
limit is a limit of Rs. 60 lakhs for every 12 months of a person's economic
activities. However, the following values will not be included in this range,
namely: -
01. Exemption supply cost
02. Sale value of capital assets
03.The selling price
of an institution or part of an economic activity
04. The value of supplies
made as a result of the permanent cessation of economic activity
In
other words, if a person's 12-month taxable supply exceeds the limit of TK 60
lakh, he has to be registered for VAT.
12 months calculation in case of registration
Registration
obligation is determined on the basis of 12 months turnover of the individual.
There are two ways to calculate the time for the registration turnover test:
Actual Turnover:
In the month in which the person registering will verify the
possibility of his registration, he calculates the total turnover of the last
12 months from the last day of the previous month (tax period) and if it
exceeds the registration limit, he will have to register for VAT.
Estimated Turnover:
The month in which the registrant person will verify the possibility of his registration, he estimates the total turnover for the next 12 months from the first day of the next month and if he thinks it exceeds the registration limit then registration for VAT is required.
He
has to accept the registration only if he exceeds the turnover registration
limit in any one method. He can apply within 15 days from the date on which the
registration requirement was made. No matter which day you apply, you have to
apply to the Commissioner for registration from the first day of the month (the
day the requirement is made).
12 months calculation in case of enrollment
The person who is to be
enrolled like the registrar also has to check the possibility of enrollment in
every tax term. Total turnover has to be calculated every 12 months for
enrollment. In case of registration, annual turnover is fixed in
actual-turnover and estimated-turnover system, but in case of enrollment,
annual turnover is fixed in actual-turnover system.
The
enlisted person will have to verify the probability of enrollment in the tax
term (quarterly) by calculating the total turnover of the last 12 months from
the last day of that tax term. If he crosses the enrollment limit by
calculating the turnover considering the last day of consideration, he has to
apply to the commissioner for enlistment within the next 30 days.
Form
No. Name
VAT-2.1
Application for Value Added Tax Registration and Turnover Tax Enlistment
VAT-2.2
Application for Branch Registration under Value Added Tax
VAT-2.3
Value Added Tax Registration Certificate / Turnover Tax Registration Certificate
VAT-2.4
Value Added Tax Registration / Turnover Tax Registration Cancellation and
Application for Change of Tax Nature
Which form should you apply for registration or enrollment?
Central Registration:
For Central Registration one has to apply in Form
VAT-2.1.
Branch
Registration: If a company has more than one branch and fulfills the conditions
of branch registration, it is necessary to apply for VAT-2.1 for Central Unit
and VAT-2.2 separately for each branch unit.
Turnover tax enrollment:
For turnover tax enrollment, you have to apply in Form VAT-2.1.
Where to apply for registration or enrollment?
Application for
registration / enrollment can be submitted at the following places.
01.Online
board web portals;
02. Central Information Processing Center operated by the Board;
03. In any Customs, Excise
and VAT Commissionerate or Divisional Office which is convenient for the
applicant;
04. At
any service center operated by the Board or the concerned Commissioner;
05.at any fair conducted
by the Board or the concerned Commissioner;
06.Any
other place as determined by order of the Board.
Basis of registration
The basis of
registration is the taxpayer's accounting system. Registration of central or
branch unit will be applicable depending on the manner in which the taxpayer
maintains the accounts. A company can have more than one branch unit. Separate
registration will not be applicable for each of their branch units but only one
registration will be required for the entire company depending on its
accounting system. If an account is kept for the entire business activity and
an annual financial statement is made, a registration will be applicable for
it. And if separate accounting is done for each branch unit and the financial
statements of each branch unit are different, then one for the central unit and
one for each branch unit on its basis will have to take a separate
registration.
Central
Registration Branch Unit Registration
The
main method of registration is to keep / manage separate accounts and records
from the central unit
Alternative
method of single institution single audit registration
The
sole controlling authority for all the branches will not be deemed to be the
exchange or movement of goods / services from the branch to the branch
separately registered.
Account
based registration.