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Understanding deduction of tax at source from export cash subsidy under Section 112 of the Bangladesh Income Tax Act 2023. |
Deduction of tax at source from export cash subsidy under Section 112 | Bangladesh Income Tax Act -2023
As per section-112(ITA-2023),
Deduction of Tax at Source from Export Cash Subsidy
Any person responsible for making payment of any amount as an export cash subsidy to an exporter for the purpose of promoting exports shall, at the time of payment or credit of such amount, deduct or collect advance tax at the rate of 5% (five percent) on the amount payable.
A) Deduction of tax at source on the purchase of gold, silver, gold ornaments, silver ornaments, gems-diamonds or platinum—Any person (person) engaged in the business or profession of buying and selling gold, silver, gold ornaments, silver ornaments, gems-diamonds or platinum shall, at the time of purchasing such items from the seller, deduct tax at source at the rate of 0.5% (zero point five percent) on the purchase price.”
Frequently Asked Question (FAQ):
1. What is deduction of tax at source from export cash subsidy under Section 112?
Answer:
Deduction of tax at source from export cash subsidy means withholding tax from
government-provided export cash incentives or subsidies according to the
provisions of Section 112 of the Bangladesh Income Tax Act 2023.
2. Who is responsible for deducting tax from export cash subsidy in Bangladesh?
Answer:
The person, authority, or organization responsible for paying the export cash
subsidy must deduct tax at source according to the applicable provisions of the
Bangladesh Income Tax Act 2023.
3. What is the tax rate applicable on export cash subsidy under Section 112?
Answer:
The applicable tax deduction rate on export cash subsidy depends on the current
provisions, rules, and notifications issued under the Bangladesh Income Tax Act
2023. Taxpayers should verify the latest rates before making deductions.
4. Why is tax deduction at source from export cash subsidy important for exporters?
Answer:
Tax deduction at source ensures compliance with Bangladesh tax laws, proper
reporting of export incentives, and accurate documentation of tax obligations
for exporters.