Assessment of NPT ( Sec 45-50)
&
Tax Invoice (Sec 51-54)
Sec - 45 (Net payable tax)
a) by adding together all the payable
The amount of net payable tax for output taxes and SD
any tax period shall be b) by subtracting all the entitled input tax
assessed by considering:
credits from the summation of above
clause (a);
c) b y a d d i n g t o g e t h e r a l l o f t h e
increasing adjustments;
d) by subtracting all of the decreasing
adjustment.
The net payable tax as assesed above to
be paid by the taxpayer before filing the
return for such tax period.
Report submission on Purchase & sales u/rules 42
§ Every registered or listed person report
- Any sale or purchase transaction beyond BDT 200,000 needs to be
recorded and submitted to iVAS using Form 6.10
- Information to be submitted electronically before or during submission of
Returns
- Hardcopy submission to the concerned officer is also acceptable if
incapable of electronic submission
- Exception: Above system not applicable to Taxpayers using NBR approved
PoS, ECR, software or any other computer system.
Sec -2(18A) Inputs
Inputs are : Not to be:
Raw-materials a) labour, land,structure, office equipment and fixture,
loboratory reagent, construction, balancing,mordenization,replacement,expansion,
laboratory equipment, repair and renovation of any building or structure or
laboratory accessories, establishment;
any materials used as
fual, b) purchase or repair of all kinds of furniture, office supply,
packing material, stationary items, refrigerator and freezer, air conditioner, fan,
service, lighting equiepments and genertor;
machinery and spares,
c)Interior disign,architectural plan and drawing;
d) rent or lease of vehicle
e)Travel,entertainment, staff welfare, development works and
goods and services related to these;
f) rent of premises, office, show- room or similar place of
business establishment in whatever name it is called;
Sec -46 (Input Tax Credit)
1. A registered person shall be entitled to an input tax credit against the VAT
imposed on a taxable supply, except in the following cases:
Ø Taxable supply exceeding 1 lakh cash transaction;
Ø Input tax not claim within succeeding 4 tax period;
Ø VAT paid on the goods under the custody or possession or occupancy
of other person
Ø Input VAT not entered in purchase register.
Ø VAT paid on inputs used in the production of exempted goods
Ø Turnover tax and SD paid on inputs
Ø Any person whose sales VAT rates are below 15%
Ø Any input items not mentioned in the input-output co-efficient (4.3)
Ø Any payment without Mushak 6.3 (it is allowed only for 0 rated or 15%
Sec -46 (Input tax credit) cont----:
2.
a. Input tax credit allowed, if the aquisition/import relates to passenger
vehicle ( also its spare parts/repair and maintenance etc) like
Ena,Shyamomi,shohag Poribahan etc.( who brought and sold to them
not allowed)
b. if equipment purchased and sold to park owner than no credit allowed.
but part ower purchased/import and used in the part for business
input tax credit is allowed.
c. No input tax credit allowed on the membership fees paid to be memeber
of club (like - Dhaka club),Association/society,sporting etc.
d. In case of goods transportation (Shipping agent, Fright forwarders,
Courier service,transport contractor) 80% input tax credit is allowed.
Sec -46 (Input tax credit) cont----:
3. To claim input tax credit the following documents to be in possession:
a. in case of import, Bill of Entry bearing the name of importer and BIN.
b. In case of supply , a tax invoice issued by the supplier
c. Incase of withholding entity, a combined tax invoice and withholding
certificate
d. Tressury challan
e. To take credit on VAT paid on gas, electricity,water and telephone bill, bill
issued by the concerned organigation ( bank,insurance and port) to
be considered as invoice.
Sec -47 (Partial Input tax credit)
For example:
Exempted Supply + Taxable Supply (T) = Tatal Supply ( in the taxperiod) (A)
20,000 + 60,000 = 80,000
Total input Tax credit (I)= 7,500
Partial input Tax Credit = I * T /A
= 7,500 * 60,000/80,000
= 5,625
sec - 2 (21) Withholding Entity
Withholding entity means-
(a) A government entity;
(b) An NGO approved by NGO Affairs Bureau or Directorate of Social
Welfare;
(c) a bank, insurance company or similar financial institution;
(d) secondary or above level educational institution;
(e) any limited company.
Sec -48 ( Adjustment):
1) A taxpayer may make increasing adjustment in the following cases-
a) increasing adjustment for TDS;
b) -------- in consequence of an annual re- calculation
c) -------- for not making payment through banking chennel;
d) -------- for goods put to a private use;
e) -------- on being registered;
f) --------- becasue of cancelllation of registration;
g) -------- becasue of change in VAT rate;
h) -------- for payment of interest, monetary penalty,fine fee etc;
i) -------- any other prescribed adjustment.
2) a taxpayer may make decreasing adjustment for the followings-
a) decreasing adjustment for money paid as AT
b) ----- of TDS against supply made by supplier
c) ------- applicable as result of annual re- calculation or audit
d) ------- for issueance of credit note
e) ------ for input tax paid in casse of export
f) ------- for incase of decrease in VAT rate
g) ------- claimed for negative net amount carried forward for a previous tax period
h) -------- for VAT overpaid in previous tax period
i)any other prescribed decreasing adjustment.
Sec -49 ( Tax withhold at source and increasing adjustment by the
withholding entity)
1.If a supplier makes a supply, which is not exempted or 0 rated, to a
withholding entity against aggreement/tender/work-worder, the
withholding entity shall withhold the determined VAT at source.
2. The withholding entity shall not receive any supply from the person
who is not registered or enlisted
3.The registered withholding entity shall make an increasing adjustment
for the amount of withhold VAT and shall pay at the time of filing the
return.
Sec -49 ( Tax withhold at source and increasing adjustment by the
withholding entity) cont------
4. The withholding entity and the supplier shall be jointly and severaly liable
for the tax withhold at source and pay to the Treasury.
5.For any project,VAT payable by service recipient is collected at source
and deposited to the Govt Tresury while paying service value.
like- Main Contractor will not collect the VAT at source while paying service
value to Sub- contractor.
it is aplicable for service only not for goods.
Sec -50 (Drecreasing adjustment by the supplier after tax withhold at
source)
1. if tax is withhold at source, the registered person may make a
decreasing adjustment of an amount equal to the amount of money
withhold at source.
2. the adjustment shall be claimed in the tax period in which the tax
payable on supply is paid or with in the next 3 months after such tax
period is over and a claim for such adjustment after such period shall be
time barred.
3. the supplier shall not make decreasing adjustment without receipt of
witholding certificate from the withholding entity.
Books of Accounts and Documents u/Rules 40
§ Form 6.1: All accounts of Purchases
§ Form 6.2 :all accounts of Sales
§ Form 6.3: VAT Invoice will be issued by a registered person
§ Form 6.4: VAT Invoice for supply under contract
§ Form 6.5: Invoice for the transfer of Goods
§ Form 6.6: Withholding Certificate by the recipients of the goods or services
§ Form 6.7: Credit Note for the negative adjustment
§ Form 6.8: Debit Note for the Increasing adjustments
§ Form 6.9: Turnover Tax Invoice for enlisted person
§ Form 6.10: Invoice data for Purchase/Sale beyond BDT 2 lac
Chap -6
Tax invoice and other documents (Sec 51-54)
Sec -51 ( Tax invoice)
Every registered/enlisted person shall issue a tax invoice-6.3, on such
date or before that date when tax becomes payables on the taxable supply.
Sec -52 ( Credit note and debit note)6.7 &6.8
1. Every credit note or debit note shall include the following information:
a) the serial number of the credit or debit note and the date and time of
its issue
b) the name, address and BIN of the supplier
c) the serial number and date and time of the relevant original tax invoice
d) the nature of the adjustment
e) the effect of the amount of the VAT
f) the name, address and BIN of the receipient of the supply if the
amount of VAT payable on the supply is more than TK 5,000 only
g) any other information necessary to identify the amount of any
increasing or decreasing adjustment because of any adjustment event.
2) If a credit note does not contain the information specified in clause (f)
above , it shall be used in support of a claim for any decreasing adjustment.
Sec - 53 (Tax withholding certificate)
while tax withholding entity receives any supply from any registered
person, the tax withholding entity shall issue tax witholding certificate
(mushak 6.6) in the manner prescribed by the Board while making
payment against the supply by him.
Sec -54 (other provision relating to tax documents):
The Board may fram rules in respect of tax documents and issuacne of
copies thereof and of the terms of preservation, manner and time limits of
submission thereof.
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