 |
| Corporate practice bd |
Turnover limit for taxation
Subject
to Difference Value Added Tax Act, 1991 Value Added Tax and Supplementary Duty
Act, 2012
Turnover
limit for taxation is only 1 limit, registration limit of 60 lakh rupees is 2
limits. 30 lakh turnover tax enrollment limit and 60 lakh registration limit
All
companies with a turnover of up to Rs 60 lakh had to be listed for turnover
tax. As a result, even small enterprises had to be listed under the turnover
tax and pay 3% turnover tax. 3% turnover tax is applicable for businesses with
turnover above Rs. 30 lakhs but up to Rs. 60 lakhs. No tax will be levied on
any business with a turnover of up to Tk. 30 lakhs (excluding business subject
to supplementary duty).
All
companies had to pay tax irrespective of turnover. Small companies do not have
to pay any tax. Medium enterprises have to pay 3% turnover tax.
Although
companies with a turnover of up to Tk. 60 lakh were given the opportunity to
register, there was an opportunity to bring most of the companies under
compulsory registration again with SRO. Neither the board nor the government
has the power to issue such SROs. As a result, there is no opportunity to
impose such conditions in the case of enrollment.
Comment:
As there are two limits, small traders, especially those small enterprises that
were registered under package VAT, will no longer be subject to the tax. Here,
small means an annual turnover of up to Tk.. 30 lakhs.
Subject
to Difference Value Added Tax Act, 1991 Value Added Tax and Supplementary Duty
Act, 2012
Tax
rate standard rate 15% standard rate 15%
Exports
0% Exports 0%
Rate
of some services based on compressed base price: 1.5% to 9%. There is no
compressed base price based rate.
Due
to the high rate of VAT, the VAT chain is not fully implemented and there is a
recurrence of taxes. With the single rate VAT system, the VAT chain will be
fully implemented and there will be no tax recurrence.
In
the case of a comparatively base price, the tax rate seems to be lower because
of the seemingly lower tax rate, but the actual net tax amount in a supply
cycle is much more than 15% of the last consumer's purchase price because there
is no real discount. Apparently the tax rate seems to be 15% higher, but the
actual net tax in a supply cycle will be equal to 15% of the last consumer's
purchase price (inclusive) as there is actually a rebate.
Comment:
The net tax amount of real honest traders will be reduced. For those who do not
show all supplies at present, keeping accounts like showing all supplies will
increase the net tax and thus increase the financial discipline and increase
the total revenue collection.
Subject
to Difference Value Added Tax Act, 1991 Value Added Tax and Supplementary Duty
Act, 2012
Registration
and enrollment The basic basis of registration or enrollment is the geographical
location. The basic basis of registration or enrollment is the accounting
system of the organization.
If
a company has more than one branch unit, multiple registrations are generally
applicable. Even if a company has more than one branch unit, one registration
is generally applicable.
Transfer
of materials or manufactured goods from one branch of a business organization
to another branch has to be paid by showing supply while artificial supply has
to be created. You don't have to
As
one organization has more than one registration, each unit is considered as a
separate person and each branch has to keep separate accounts including VAT
payments and audits are also done separately. As there is a single registration
for multiple branch units of an organization, each unit is not considered as a
separate person and each branch does not have to keep separate accounts
including VAT payments, only the accounts applicable for the branch have to be
maintained.
11
digit BIN was issued which means Commissionerate, Circle. 9 digit BIN is issued
from which Commissionerate, Circle is not understood.
BIN
changes with change of business address BIN does not change with change of
business address
Many
types of documents were required for registration. No documents are required
for registration.
Registration
or enrollment was provided by the departmental office. Registration or
enrollment is provided by the Commissionerate.
Comment:
The actual business account and VAT account will be the same. There is no need to
keep separate accounts for VAT system so the cost of running the business will
be less and there will be no unnecessary complications.
Subject
to Difference Value Added Tax Act, 1991 Value Added Tax and Supplementary Duty
Act, 2012
The
basis of price and tax calculation for imposition of tax was to get approval
from the departmental department by declaring the price before production at
the stage of production and supply. At present, the supply price is the price
including VAT. The actual supply price has been taken as the basis for levying
VAT
In
many cases, VAT was applied at a reduced rate based on a fixed price, but there
is no reduced pricing system.
At
the stage of production, VAT was applicable on the tariff value of many
products. There is no tariff price system
Some
products or businesses had wholesale tax system such as MS products, package
VAT system, etc. There is no bulk tax system
There
was a price system with and without taxes. In cases other than the declaration
of price, the taxpayer could determine at what price he would supply. In all
cases the supply price will be the price including tax.
Comment:
The most complicated procedure of the 1991 Act was the pricing and approval process.
This will reduce the harassment of taxpayers. If the supply price of a trader
is less then its supply price will be determined by the market price system.
Subject
to Difference Value Added Tax Act, 1991 Value Added Tax and Supplementary Duty
Act, 2012
The
concession, return and refund concession system is quite narrow
Discounts
are available not only on materials directly used in the manufacture of goods
or services
80%
discount is approved for many services. The remaining 20% VAT rebate is not
available which is considered as business expenses. 100% discount will be
available on all supplies purchased as part of economic activities.
Material
tax rebate is not available against many capital investments including
construction of business building Material tax rebate is available against all
capital investment including construction of business building.
Many
conditions had to be met in order to get a discount.
The
field of return is very narrow The field of return is very wide
The
repayment process is very complicated, after the approval of the Commissioner,
the return check has to be received from the Accounts Department. The refund
process is very simple, the submission will be considered as a refund application.
Within 2 months of receipt of the application, the commissioner has to dispose
of it and pay it to the taxpayer's account.
Refunds
may be accepted from the duty-tax dedo paid against the goods purchased or
imported for the production of export goods. VAT and supplementary duty can be
refunded in the same manner as in the case of duty paid on goods purchased or
imported in the production of export goods. Import, Regulatory Duty and other
customs duties paid under the Customs Act will have to be refunded from the
Customs House or Dedo.