Tax On Imported Goods
All Goods & tax on imported goods deemed to have been exported out of Bangladesh and stores and provision for consumption abroad, a conveyance proceeding to a destination outside Bangladesh, and foods and other tax on imported goods to consumption abroad be consider as 0 (zero) rated Goods & Services. Example of rated Goods & Services is:
1) 100% export oriented Goods.
2) Supplies to the Organization located in EPZ.
3) Supplies of Goods or Services to International Organization, Diplomatic Mission.
The tax on imported goods which are not liable for VAT and is totally exempted Goods are specified in 2nd Schedule to the Narcotize control at and paragraph 3 of 1st schedule of VAT Act 1991. Example of Exempted Goods:
6) Fresh Foods
All Goods other than 0 (zero) rated & exempted goods which are liable for taxation is called Taxable Goods.
Only those services that are not subjected to VAT but it is imposed only on some services as referred in the 2nd schedule of VAT Act 1991. Example of taxable services:
1) Health Clinic
2) Dental Clinic
3) Pathology Laboratory
4) Beauty Parlor
5) English Medium School
6) Private University
Input Tax Rebate:
Input Tax paid by the registered person on the imported goods can be adjusted against output tax liability in the current accounts for a certain tax period, which is called input tax rebate.
Condition for input tax rebate:
1) Must be registered person.
2) Documents related to input tax payments including name, address, registered no., Bill of Entry, Mushak 11, Chalan etc. These are the documents must be retained for at least 4 years.
3) Rebate must be obtained in the concerned tax period.
4) Declaration in respect of analysis of Breakdown of cost.
5) Rebate can not be obtained against chalan of Turnover Tax.
Vat Authorities (Power) :
The Board by notification in official Gazette can assign mentioning the limit and condition in respect of there function along with their name and designation.
1) Assignment of duties of VAT Officer on other Govt. Officer.
2) Assistance to VAT Officer.
3) Power to issue summon
4) Power to enter into resident.
5) Power to inspect Goods & Stocks.
6) Power to examine the Accounts and files and other business related papers including commercial papers and documents.
7) Power to seize Goods.
8) Power to appoint Auditors.
9) Fixing up reasonable fees and other terms of reference.
10) Power to examine Goods in store of a registered person.
11) Power to examine the transaction on supply of Goods & Services.
12) Power to manage the confiscated goods in any manner subject to the rules of the serving Govt.
There are some exceptions under the VAT Act, 1991 which are as follows:
a) An Importer: Producer, Manufactures or Service Provider whose annual turnover of Taxable goods or services is less than Tk. 20,00,000/- (Tk. Twenty Lacs) and accordingly subject to turnover Tax U/s 8.
b) A Producer: Industries having tax free sale up to Tk, 6,00,00,000/- (Tk. Six Crore)and taxable goods sales up to Tk. 18,00,000/- (Tk. Eighteen Lacs)
Hotel, Restaurant decorators and caterers and sweetmeat shop and other than those operating in the Metropolitan areas and district town. Hotel, Restaurant, Cold storage’s and sweetmeat shop operating in temporary , tin shadows in the Metropolitan areas and district town. All whole sellers and retails.
Tax Letter Format
The Deputy Commissioner of Taxes,
We write to inform you that the Assessment order and Demand Notice of 1999-3000 havenot yetbeen
received by us which we came to know that the assessment has been completed.
In view of the facts stated above you are, therefore, requested to kindly give us certified copies of
assessment order and demand Notice of above assessment.
We are affixing loosely court fee stamps of Tk. 10/= (Taka 5+Tk. 5) to affix the same on the certified
We have deposited urgent copying fees of Tk. 150/= (Taka one hundred fifty only) i.e Tk. 100/= for
assessment order and Tk. 50/= for Demand Notice vide challan No. Dated.
It would be highly appreciated if the certified copies as prayed above is kindly given at an early date.
Tax Letter Format 2
The Appellate Additional Commissioner of Taxes
Range – 2, Zone – 1
For that the DCT erred in making an addition of Tk. 100,40,907 in trading and the ground so cited by him due to the facts stated below are not maintainable in law as well as in facts.
Our garment factories are located in Mirpur, Dhaka. As per decision of the management, the bills of electricity, gas, and other common utility services were shared equally based on sanction load among these companies since long and which was accepted by the taxation authority while assessing these companies in different circles in different years. All these are taxable companies under the status of “company”. These Companies are paying tax at corporate rates. There are no outside tenants in our above premises and also no individual sister concerns are located there in.
As the aforesaid basis of allocation of common utility charges are observed as per decision of the management since long and accepted by the tax authorities now the basis cannot be changed in an individual case in the year under review.
In view of the facts stated above, the change of accepted basis of allocation of common expenses are not acceptable and not allowed under the principle of Accounting and Tax laws. Hence, for the sake of justice the addition made in trading account must be deleted in full on merit on accounting consistency. This is the rules of tax on imported goods.
Engr. Kh. Mashiur Rahman Email: email@example.com