Supplementary Duty (SD):

 

It is imposed on:                                                              

·            *  Luxury goods

·             *  Non-essential goods

·            *  Undesirable goods

  *  Other goods and services

 

Fair market price as per VAT & SD Act. 2012.

 

·         The consideration for a supply arrived at on the basis of a normal relation between a buyer and a seller, who are not associated with each other;

·         if it is not possible to arrive at a fair market price as prescribed in clause (a) above, it would then be the consideration of a similar supply made previously under similar circumstances;

         -     if it is not possible to arrive at a fair market price by the above means, it may be determined by the Board on the basis             of  an impersonal average of considerations arrived at in the course of normal business relations among buyers and                         sellers, who are not associated with one another

 

Enlistment Threshold as per VAT & SD Act. 2012.

 

It means the limit of Taka 50 lakh as turnover of an economic activity of any person in a 12 (twelve)- month- period, but DOES NOT include the following, namely-

 

·         the value of an exempted supply;

·         the value of sale of a capital asset;

·         the value of a sale of an organization of economic activities or any portion thereof; or

the value of a supply made as a consequence of permanently closing down an economic activity;

 

Resident as per VAT and SD Act. 2012

 

An individual who-

 

1.       normally lives in Bangladesh; or

2.       stays in Bangladesh for more than 182 (one hundred and eighty-two) days in a current calendar year; or

3.       stays in Bangladesh for more than 90 (ninety) days in a calendar year and stayed in Bangladesh for more than 365 (three hundred and sixty-five) days during the four immediately preceding calendar years; and

also includes the following entity, namely—

·         a company, if it is incorporated under the prevalent laws of Bangladesh or its centre of control and management is in Bangladesh;

·         a Trust , if a Trustee thereof is a resident of Bangladesh or the centre of control and management of the Trust is in Bangladesh;

·         an association of persons other than a Trust , if it is formed in Bangladesh or its centre of control and management is in Bangladesh;

·         all government entities; or

       -     a property development joint venture;