Types of VAT Rates

 

·        Standard VAT rate 15%

·        Trade VAT rate 5%

·        Truncated VAT Rate - 3rd Schedule - 5%, 7.5%, 10%

•                     Trading stage VAT for Medicine – 2.4%

•                     Trading stage VAT for Petroleum – 2%

•                     Land Development – 3%

•                     Apartment sale or transfer by Real Estate Developer

– 2% ( upto 1600 sft), 4.5% (from 1601 sft and above)

·         Re-registration of any size– 2%

·        Packaged VAT system has been abolished.

·        Fixed Amount of VAT for newsprint, bricks, M.S. Product and SIM cards.

·        Turnover tax rate – 4%

Withholding VAT

 
VAT Act 2012 has given certain business entities the responsibility to withhold VAT. 
Sub-section 21 of section 2 of VAT Act 2012 defined withholding entity to mean-
1. a Government entity (Ministry, board, authority, semi- Government, autonomous body, state owned entity, local authority or similar types of institutes);
2. a non-government organization approved by the NGO Affairs Bureau or the Directorate-General of Social Welfare;
3. a bank, insurance company or a similar financial institution;
4. a post-secondary educational institution; or
5. a limited company;

Supplementary Duty (SD) and VAT Registration Threshold

 Supplementary Duty means additional duty that is added with conventional duty imposed by government at the stage of import, manufacturing, and supply of services inside Bangladesh.

Turnover from BDT 5m to 30m is liable for enlistment as turnover tax payer unless there is specific instruction by the government to get VAT registration.Turnover tax rate is 4%.
VAT registration must be obtained if Turnover is BDT 30 million and above.

 

Statement submission at the time of Income Tax Return.

 

Sections and Rule	Particulars
Section-108 & Rule -23	Information regarding payment of salary
Section-109 & Rule -20	Information regarding payment of  Interest
Section -110 & Rule-19	Information regarding payment of dividend
Rule -10	Particulars to be furnished on interest on securities by a person other than the government.
Rule -12	Particulars to be furnished by persons making deductions of tax at source.
Rule-18(7)	Statement of TDS under chapter-VII
Rule-21	Statement of deduction of tax under the head of  “ Salaries”
Rule-24, Rule-25 & 25A	Form of Return
Rule-41	Particulars  for depreciation allowance
Rule-47	Furnishing of an abstract of the PF account of an employee
Rule-58B	Returns, Statements etc that may be required to be furnished.