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.

 

How to apply for online VAT Registration

 ** Website : VAT Online Services

** Sign up

** System generated log in ID and Password

** The applicant shall change the password

** Log in with new secret password of applicant

** Fill up the application form 2.1

** Check the accuracy  of the of the information VAT 2.1

** Submission of the application 

** System generated submission  ID

** Receiving BIN Form 2.3 online through email

** Showing  the BIN

3rd Schedule: Products & services

Reference	Rate	Products/Services
3rd Schedule, Paragraph-3	2%	Petroleum, Land Development,  Building construction organization up to 1-1,600 sq. feet, Re-registration (Other than first time sale)
3rd Schedule, Paragraph-3	2.4%	Medicine at Local Trading
3rd Schedule, Paragraph-3	4.5%	Over 1,601 sq. feet Building Registration
3rd Schedule, Table-1,Part-A	5%	Goods: Powder Milk, Crushed Spices, Mustard Oil, Biscuit, Ketchup, Juice, LPG Gas, Tableware, Kitchenware, Printing paper, exercise Book, wastage, CR coil, Transformer, Energy Savings bulb,
3rd Schedule, Table-1,Part-B		Services: Internet, Indenting, Furniture selling at showroom, Electricity distributor, English medium school, Information Technology enabled services, Online sales of goods. Non-Ac Restaurant.
3rd Schedule on used-3		All goods at local trading stage
3rd Schedule, Table-2,Part-A	7.5%	Goods: Self Paper, Board, Packing/simplex/Colored paper
3rd Schedule, Table-2,Part-B		Services: Non-Ac Hotel , Construction establishment, Furniture Producer, Procurement Provider, Garments
3rd Schedule, Table-3,Part-A	10%	Goods: Electric Pole
3rd Schedule, Table-3,Part-B		Services: Motor Car Garage, Dockyard, Printing Press, Mechanical Laundry, Security Service, Transport Contractor, Attendee of Board meeting, Tailoring Shop, Building, Floor & Premises Cleaning or Maintenance establishment, Social and game Club, AC-Restaurant.
3rd Schedule, Table-4,Part-A	Specific amount	Newsprint (MT), Cotton (kg), Bricks(k), Scrap/Ship Scrap (MT), MS Products (MT)
3rd Schedule, Table-4,Part-B	Specific amount	SIM Card