Calculation of net Bill amount in the case of Excluding TDS & VAT

 

Excluding TDS & VAT or net payment,

Suppose, ABCD Co Ltd. has a contract with vendor to pay BDT 100 (net) and if any TDS and VDS is applicable that ABCD will need to bear extra over and above 100. Considering 15% VDS and 10% TDS is applicable in this transaction. How value of VDS and TDS will be calculated?

Answer: If net payment = BDT 100.00 Then it is 90% of the base value or Income as TDS rate is 10% Base value would be = 100*100/90 = BDT 111.11

Therefore, TDS amount of BDT (111.11-100) = BDT 11.11

And VAT amount would be 15% on BDT = BDT 111.11, VAT=111.11*15%=BDT 16.67

As per new VAT Act 2012, Price should be inclusive of VAT amount

Calculation Base Value in the case of Including TDS & VAT

 

WE ASSUME TAX RATE IS 10% AND VAT RATE IS 15%.

Including TDS & VAT

If the invoice value of vendor is Tk. 5000 including VAT @ 15%, submitted for the payment to resident;

Then VAT would be = BDT (5,000 – 5,000 * 100/115)=BDT 652, Tax Deduction at Source (TDS) BDT(5,000 – 652) * 10% = BDT 4,348 @10% = 435

Here base value = BDT 4,348

Various types of Business related Acts

 

S.L	Particulars	ACT
1	Partnership Act	1932
2	Joint Stock Company	1994
3	Co-Operative Society Act	2010
4	Negotiable Instrument Act	1981
5	Income Tax Act	1984
6	Income tax Ordinance	1984
7	The Value Added Tax and Supplementary Duty Act,	2012
8	Bank Company Act	1991
9	Security and Exchange Commission act	1993
10	Security and Exchange commission Ordinance	1987
11	Labor Act	2006
12	Sale of goods Act	1930
13	Chartered Accountant ordinance	1972
14	The Societies Registration Act	1860.
15	The Trade Organization Ordinance	1961.
16	The Contract Act	1872.
17	The Bankruptcy Act	1997
18	Bangladesh Bank Order	1972 (P.O. No. 127 of 1972)
19	Bank Company (amendment) Act	2013
20	The Bankers’ Book Evidence Act	1891
21	Foreign Exchange Regulations (Amendment) Act	2015
22	Foreign Exchange Regulations Act	1947
23	Financial Reporting Act	2015
24	Bank Deposit Insurance Act	2000
25	Money Loan Court Act	2003
26	Micro Credit Regulatory Authority Act	2006
27	Money Laundering Prevention (Amendment) Act	2015
28	Money Laundering Prevention Act	2012
29	Anti Terrorism (Amendment) Act	2013
30

 

International standards on Auditing (ISA)

 

S.L	ISA No.	Particulars
1	200	Overall Objectives of the Independent Auditor and the Conduct of an Audit in Accordance with International with International Standards on Auditing
2	210	Agreeing the Terms of Audit Engagements
3	220	Quality Control for an Audits of Financial Statements
4	230	Audit Documentation
5	240	The Auditor's Responsibilities Relating to Fraud in an Audit of Financial Statements
6	250	Consideration of Laws and Regulations in an Audit of Financial Statements
7	260	Communication with Those Charged with Governance
8	265	Communicating Deficiencies in Internal Control to Those Charged with Governance and Management
9	300	Planning an Audit of Financial Statements
10	315	Understanding and Assessing the Risks of Material Misstatement through Understanding the Entity and Its Environment.
11	320	Materiality in Planning and Performing an Audit.
12	330	The Auditor's Responses to Assessed Risks
13	402	Audit Considerations Relating to Entities Using Service Organization.
14	450	Evaluation of Misstatements Identified during the Audit.
15	500	Audit Evidence
16	501	Audit Evidence-Specific Considerations for Selected Items
17	505	External Confirmations
18	510	Initial Audit Engagements-Opening Balances
19	520	Analytical Procedures
20	530	Audit Sampling
21	540	Audit of Accounting Estimates, Including Fair Value Accounting Estimates, and Related Disclosures.
22	550	Related Parties
23	560	Subsequent Events
24	570	Going Concern
25	580	Written Representations
26	600	Special Considerations-Audits of Group Financial Statements (Including the Work of Component Auditors)
27	610	Using the Work of Internal Auditors
28	620	Using the Work of an Auditor's Expert
29	700	Forming an Opinion and Reporting on Financial Statements
30	705	Modifications to the Opinion in the Independent Auditor's Report.
31	706	Emphasis of Matter Paragraphs and Other Matter Paragraphs in the Independent Auditor's Report.
32	710	Comparative Information-Corresponding Figures and Comparative Financial Statements
33	720	The Auditor's Responsibilities Relating to Other Information in Documents Containing Audited Financial Statements
34	800	Special Considerations-Audits of Financial Statements Prepared in Accordance with Special Purpose Frameworks
35	805	Special Considerations-Audits of Single Financial Statements and Specific Elements, Accounts or Items of a Financial Statement
36	810	Engagements to Report on Summary Financial Statements.