Value Added Tax
A type of consumption tax that is placed on a product whenever value is added at a stage of production and at final sale. Value added tax (VAT) is most often used in the European Union. The amount of value added tax that the user pays is the cost of the product, less any of the costs of materials used in the product that have already been taxed.
An Act made to provide for the imposition of an added value tax on goods and services
Whereas it is expedient to provide for the imposition of an added value tax;
Now, therefore, it is enacted as follows-
1. Short title, application and commencement.-
(1) This Act may be called the Added Value Tax Act, 1991.
(2) Of this Act-
a) the sections 15, 16, 17, 18, 20, 21, 22 and 72 shall be deemed to have come into force on second June, 1991/18th Jyaistha,1398, respectively, and
b) the other sections except the abovementioned sections shall come into force on first July, 1991/16th Asharha, 1398, respectively.
2. Definitions.-
Unless there is anything repugnant in the subject or context, in this Act-
a) “exempted” means goods and services exempted from the added value tax under this Act;
b) “output tax” means the added value tax or, as the case may be, the added value tax and additional duties of customs imposed under this Act;
c) “inputs” means all kinds of raw materials, services and equipments; but it shall not include labour, land, buildings, small parts of machines, parts of machines, office equipment and vehicles;
d) “input tax” means the added value tax payed on articles imported by any registered person or purchased by such person from any other registered person;
e) “tax period” means a period of one month or any such period as the Government may, by notification in the official Gazette, specify in this behalf;
f) “taxable goods” means any such goods as are not included in the first schedule;
g) “taxable services” means the services mentioned in the second schedule;
h) “collector” means any collector, added value tax, appointed under section 20;
i) “current account” means the account kept by a registered person with a controller in the prescribed form, in which shall be stated in writing his purchases, sales, treasury deposits, payable and remittable added value tax and, if required, other tax;
j) “invoice” means the invoice made out under section 32;
k) “turnover” means the total amount of money received or receivable by any person at any prescribed time from the supply of taxable goods produced or manufactured by him or the supply of taxable services;
l) “schedule” means the schedule attached to this Act;
m) “document” means any matter published or stated by means of letters, ciphers, symbols or signs on paper or any other material and shall include any kind of electronic data, computer programmes, computer tapes, computer disks or any other data medium;
n) “return” means the return submitted under section 35 of this Act;
o) “prescribed date” means in case of submitting a return, the 20th day of the month following the tax period;
p) “goods” means every kind of movable property except shares, stocks, coins, securities and realible demands;
q) “producer” or “manufacturer” shall also include persons who are engaged in any of the following activities, namely:-
i) the transformation of any substance into any other well-defined substance or article through processing such substance either alone or by joining or mixing it with any other substances, materials or components or the transformation, adaptation or reshaping of such substance in such way that it may be used differently or specifically;
ii) any incidental or supplementary processing for the production of goods;
iii) processing by printing, illuminating, engraving or enamelling;
iv) assembling, mixing, cutting, liquifying, bottling, packing and repacking;
v) in the case of insolvency of any producer or manufacturer, the functions of an assignee or trustee, liquidator, executor or custodian and the function of any such person as disposes of his assets in any fiduciary capacity;
r) “rule” means any rule made under this Act;
s) “Board” means the National Board of Revenue established under the National Board of Revenue Order, 1972 (P.O. No.76 of 1972);
t) “person” shall also include any commercial organization, group of persons and association;
u) “added value tax officer” means any officer appointed under section 20 of this Act;
v) “zero-rateable goods and services” means any such goods or services as have been exported or are deemed to have been exported or any food or other articles mentioned in sub-section (2) of section 3 on which no added value tax or, as the case may be, additional duties of customs are to be charged and all taxes and duties of customs (excepting advance income tax) paid on the materials used in the production or manufacture of which are to be repaid; w) “attached officer” means any such added value tax officer as has been authorized by the Board through notice in the official Gazette issued by the Board, to assume several responsibilities under this Act;
x) “total receipts” means all money received or receivable without added value tax or, as the case may be, added value tax and additional duties of customs by a supplier of taxable services in exchange for services rendered;
y) “supply” means in the case of goods produced or manufactured by producers or manufacurers in Bangladesh, the sale, transfer or lease (of such goods) in exchange for a consideration or the disposal of such goods in exchange for goods in any other way; and it shall include the following activities-
i) the use of produced or manufactured goods acquired in the course of business activities for private, commercial or non-commercial purposes;
ii) the auction sale or settlement of any goods by any person for the purpose of paying off his debts;
iii) immediately before the annulment of the registration of a person, the taking possession of any taxable goods by such person;
iv) the removal or disposal of any goods from the place of their production or manufacture;
v) any other kind of transaction specified by notification by the Government;
z) “local added value tax office” means the office of the Superintendent, Added Value Tax or any other office specified by the Board by notification in the official Gazette.
3. Levy of added value tax.-
(1) The added value tax shall be charged and paid at the rate of fifteen per cent on the basis of the value stated in section 5 on all goods imported into Bangladesh except the goods mentioned in the First Schedule and on the supply of goods except the goods mentioned in the said Schedule and on all services mentioned in the Second Schedule.(First and Second Schedule not printed)
(2) Notwithstanding anything contained in sub-section (1), the rate of the tax charged on the following goods or services shall be nil, namely:-
a) goods or services which have been or are deemed to have been exported from Bangladesh;
b) food and other provisions supplied for consumption outside Bangladesh on any conveyance proceeding from Bangladesh to any foreign destination in accordance with section 24 of the Customs Act, 1969 (IV of 1969), hereinafter referred to as the Customs Act:
Provided that this sub-section shall not be applicable in the case of the following goods, namely:-i) any goods reimported or intended to be reimported into Bangladesh;
ii) any goods which have been cleared for exportation in accordance with section 131 of the Customs Act, but which have not been exported within thirty days after delivery of the bill of export or within the period extended by the Collector.
(3) the added value tax shall be paid-
a) in the case of imported goods, by the importer;
b) in the case of goods produced or manufactured in Bangladesh, by the supplier;
c) in the case of services, by the supplier of the service.
4. Application of rate of tax.-
(1) In the case of supply of taxable goods or taxable services, the rate of added value tax shall be the rate applicable on such goods and services at the time mentioned in sub-section (2) or, as the case may be, sub-section (3) of section 6.
(2) In the case of importation of taxable goods, the added value tax shall,-
a) in the case of clearance of such goods for home-consumption, be charged at the rate in force on the date on which the bill of entry is presented under section 79 of the Customs Act:
Provided that, where the bill of entry is presented before the arrival of the conveyance on which the goods are imported, the date concerned shall be the date of delivery of the manifest following next to the arrival of the said conveyance; andb) in the case of clearance of such goods from a warehouse under section 104 of the Customs Act, be charged at the rate in force on the date on which the said goods are cleared from the warehouse.
5. Determination of value for charge of added value tax.-
(1) In the case of importation of goods, the value on which added value tax is to be paid shall be determined by adding the import duty and other duties, including additional duties of customs, and taxes (if any), excluding advance income tax, to the value chargeable with import duty under section 25 of the Customs Act.
(2) Subject to the provision of sub-section (3), in the case of supply of goods, the value on which added value tax is to be paid shall be the price receivable from the buyer by the producer or manufacturer of the said goods, in which shall be included all the expenditures of the producer or manufacturer and, where applicable, all the duties and taxes including commissions, charges and additional duties of customs (excepting advance income tax) paid by him.
(3) The Government may, by notification in the official Gazette, specify the goods in respect of which added value tax shall be charged on the basis of the retail price and in the case of charging added value tax the retail price of such goods shall be the price, which shall include all kinds of expenditures, commissions, charges, customs duties and taxes, determined by the producers or manufacturers on consent of the officer concerned, and such goods shall be marked with a special brand or sign and shall be sold to the average consumers at such price (which shall be printed in a distinct, noticeable and irremovable manner on the surface of, or on each package, bag or receptable containing, such goods).
(4) In the case of supply of services, added value tax shall be charged on the total receipts:
Provided that, in the case of any ordered service, the Board may by rules charge the tax on the basis of the real added value.
(5) In the case of goods on which a trade discount has been allowed, the added value tax shall be chargeable on the price at which they are supplied after the allowance of the trade discount:
Provided that the price at which such goods are supplied after the allowance of the trade discount shall be mentioned in the invoice and that the amount of the trade discount allowed shall be consistent with the ordinary business practice.
6. Time and manner of payment.-
(1) The added value tax on imported goods shall be paid in the same manner and at the same time as the import customs in accordance with the Customs Act and the rules made thereunder as if it were an import tax under the said Act; and the rules, orders or directions passed or issued under the said Act shall, subject to the rules, orders or directions, if any, passed or issued under this Act for the purpose of regulating any matters relating to such added value tax or, as the case may be, additional duties of customs, be, as far as is possible, applicable to the added value tax or, as the case may be, additional duties of customs in the same manner as they are applicable to the import tax.
(2) The added value tax on goods produced or manufactured by any registered or registrable person for the purpose of conducting or furthering a business shall be paid at the time of such of the following operations as occurs first-
a) when the goods are delivered or supplied;
b) when the invoice regarding the supply of the goods is made out;
c) when any goods are used privately or are supplied for any other use;
d) when the price is received in part or in full.
(3) The added value tax on services supplied by any registered or registrable person in the course of conducting or furthering a business shall be paid at the time of such of the following operations as occurs first-
a) when the service is supplied;
b) when the invoice relating to the supply of the service is made out;
c) when the price is received in part or in full.
(4) Notwithstanding anything contained in this section, the Board may, in such manner as may be prescribed by rules, determine the time at which and the manner in which added value tax or, as the case may be, additional duties of customs is to be paid in respect of any goods, classes of goods and services.
(5) Added value tax and additional duties of customs on the supply of goods produced or manufactured in Bangladesh and added value tax paid on services shall, in such manner as may be prescribed by rules, be paid from the current account or stated in the return, respectively.
7. Levy of additional duties of customs.-
(1) There shall be paid additional duties of customs at the rate stated in the Third Schedule on such luxury articles, unnecessary and socially undesired goods and services stated in the said Schedule as are supplied in or imported into Bangladesh. (Third Schedule not printed)
(2) For the purpose of charging additional duties of customs, the value of goods and services-
a) shall, in the case of imported goods, be the value on which is levied import tax under section 25 of the Customs Act for the purpose of levying import tax;
b) shall, in the case of goods produced or manufactured in Bangladesh, be the consideration, which shall not include the added value tax and additional duties of customs, received or receivable by the producer or manufactorer from the buyer of such goods;
c) shall, in the case of services supplied in Bangladesh, be the total receipts through the supply of the service, which shall not include the added value tax and additional duties of customs.
(3) Additional duties of customs are to be paid at the same time and in the same manner as is to be paid added value tax.
8. Turnover tax.-
(1) Every producer or manufactorer of taxable goods or supplier of taxable services who is not subject to registration under section 15 shall pay a turnover tax at the rate of two per cent of his annual turnover.
(2) The highest amount of turnover tax to be paid on turnover, the schedule of payers of turnover tax, the assessment of the turnover tax to be paid and the manner of its realization, appeals against assessments, offences and punishments, the detention, adjudication, confiscation of goods and imposition of fines and all appeals in respect thereof, the powers of the officers concerned, audits, the realization of underpaid or oustanding tax, the refundment of erroneously paid or overpaid tax and other matters concerned shall be prescribed by rules.
9. Deduction of tax.-
(1) Suppliers of taxable goods or suppliers of taxable services may, subject to the provision of sub-section (2), credit input tax against the output tax payable on the supply of goods produced or manufactured by them or on services rendered by them:
Provided that, in the case of expensive materials, the input tax shall be deducted in such manner as may be prescribed by rules.
(2) No supplier of taxable goods or taxable services shall be eligible for deduction of input tax unless he holds an invoice proving that he has paid the added value tax payable on equipments or a bill of entry proving that he has paid the added value tax applicable on importations; and if any person makes an deduction without (such) proof, the officer concerned may annul such deduction and direct such adjustment in the current account or the return as may be required.
(3) Any supplier of taxable goods or taxable services who also supplies goods or services on which no added value tax is to be charged, may, in such manner as may be determined by rules, credit such proportion of the input tax against the output tax as is attributable to the inputs used in the production or manufacture of goods, or in services, on which added value tax is to be charged.
10. Corrections in the accounts after payment of output tax.-
Where the purchase of any goods has been annulled after making out an invoice for supply of taxable goods by any registrated person and the goods had to be taken back, such person may adjust in the current account and the return the added value tax or, as the case may be, added value tax and additional duties of customs applicable on the goods he has taken back against the output tax payable by him.
11. Disposal of surplus input tax.-
Where in any tax period the deductible input tax exceeds the payable output tax, such surplus input tax shall, by the registered person, be carried over to the current account of the following tax period and shall be deemed to be input tax in such tax period.
12. Deduction of input tax for stocks on the commencement of this Act.-
Where any registered person has a stock of inputs chargeable with excise duties under the Excises and Salt Act, 1944 (I of 1944) and sales tax under the Sales Tax Ordinance (VXIII of 1982) and which he has bought before the date of commencement of this Act or of inputs to be used again at any time following the commencement of this Act in the production or manufacture of any goods liable to added value tax and for which added value tax has been paid, he may, on consent of the officer concerned, credit, in such manner and at such rate as may be prescribed, the input tax against the output tax payable for the said inputs as bought within any period determined by rules.
13. Refund of tax paid on inputs used in the production or manufacture of exported goods.-
(1) Every person shall be entitled to receive as refund the added value tax, additional duties of customs, import duties, excise duties and all other kinds of taxes and duties (except income tax paid in advance) paid on inputs used by him in the production or manufacture of exported goods or in exported services or in goods or services deemed to have been exported or in foods or any other articles stated in sub-section (2) of section 3.
(2) Every exporter may credit all taxes and duties on inputs used by him in goods or services deemed to have been exported or in foods or any other articles stated in sub-section (2) of section 3 which are refundable in accordance with sub-section (1) against the output tax payable on goods or services supplied by him in Bangladesh.
14. Exemption.-
(1) The Government may, by notification in the official Gazette, subject to limits and conditions mentioned therein, exempt the import or supply of any goods or classes of goods or any services supplied from added value tax or, as the case may be, additional duties of customs chargeable under this Act.
(2) The Board may, by special order, on statement of the reasons in each case, exempt the import or supply of any taxable goods or any taxable services supplied from added value tax or, as the case may be, additional duties of customs chargeable under this Act.
15. Registration.-
(1) Suppliers of taxable goods or taxable services or importers of any goods or exporters of any goods or services shall, in such manner as may be prescribed, be registered with the officer concerned.
(2) Where any person supplies such goods or services from two or more places or conducts an import or export business, he shall be registered for each place separately.
(3) Where the officer concerned is satisfied that the application for registration is correct in all respects, he shall register the applicant and shall state the identification number of his business and give him a certificate of registration.
(4) Where any registrable person fails to submit an application for registration and where the officer concerned is, after appropriate inquiries, satisfied that the said person had been under obligation to be registered under this section, he shall oblige the said person to have himself registered and the said person shall be deemed to have been registered from the day when the said obligation had been incurred.
16. Exemption from registration.-
(1) The Government may, generally or be special order, grant to any person or group of persons exemption from the obligation to be registered under section 15 on the basis of the annual turnover received or receivable by him or them from the supply of taxable goods or services:
Provided that an exemption under this section shall be applicable only in the case of such persons or groups of persons as have not received nor are to receive an amount of the said annual turnover exceeding the figure which the Government may, by notification, determine from time to time.
(2) The Board may, generally or by special order, exempt importers or exporters of any class from the obligation to be registered.
17. Voluntary registration.-
Every person exempted from registration in accordance with section 16 may, in such form and subject to such conditions as may be prescribed, apply to the officer concerned for being voluntarily registered as a supplier of taxable goods and services and the officer concerned shall, if he is satisfied that the application complies with all requirements, register the applicant and shall state the identification number of his business and give him a certificate of registration.
18. Change of information relating to registration.-
If there have occurred changes regarding names, addresses or any other informations stated in the application, the registered person shall, within fourteen days from such change, inform the officer concerned about it.
19. Cancellation of registration.-
(1) If any registered person ceases to conduct a business supplying taxable goods or services or importing taxable goods or exporting any goods or services, he shall, within fourteen days from such cessation, inform the office concerned about it and the officer concerned shall, if he is satisfied that there are no outstanding liabilities of the said person regarding added value tax or, as the case may be, additional duties of customs, in such manner as may be prescribed and on such date as he may determine, cancel the registration of such person.
(2) If the annual turnover of any registered person is less than the amount determined by the Government under section 16 and if the officer concerned is satisfied that such person is not required to be registered under section 15, the officer concerned shall, in view of an application of the said person, in such manner as may be prescribed and on such date as he may determine, cancel his registration.
(3) Every person whose registration has been cancelled and to whom is due, on the date of the cancellation of the registration, any remission of tax or duties or any other balance in the current account shall be entitled to receive such remission or balance as a refund.
20. Appointment of added value tax officers.-
For the purpose of giving effect to this Act and rules, the Board may, by notification in the official Gazette, appoint for any area mentioned in the notification any person as-
a) Collector, Added Value Tax;
b) Collector (Appeal), Added Value Tax;
c) Additional Collector, Added Value Tax;
d) Joint-Collector, Added Value Tax;
e) Sub-Collector, Added Value Tax;
f) Assistant Collector, Added Value Tax;
g) Superintendent,Added Value Tax; or
h) added value tax officer of any other rank.
21. Powers.-
(1) Every added value tax officer appointed under section 20 shall exercise the powers conferred on him and discharge the duties imposed on him by or under this Act; and he may exercise all the powers and discharge all the duties conferred or imposed on any of his subordinate officers:
Provided that, notwithstanding anything contained in this Act or the rules made thereunder, the Board may, generally or by special order, impose such restrictions and conditions on the exercise and discharge of the said powers and duties as it may deem fit.
(2) The added value tax officers shall dicharge all duties relating to added value tax, additional duties of customs and turnover tax including the assessment of its amount and its realization.
22. Delegation of powers.-
(1) The Board may, by notification in the official Gazette, and subject to such limitations and conditions (if any) as may be specified therein, empower by name or designation-
a) any Additional Collector, Added Value Tax to exercise any of the powers of a Collector, Added Value Tax under this Act or rules;
b) any Joint-Collector, Added Value Tax to exercise any of the powers of an Additional Collector, Added Value Tax, or Collector, Added Value Tax under this Act or rules;
c) any Sub-Collector, Added Value Tax to exercise any of the powers of a Joint-Collector, Added Value Tax, or Additional Collector, Added Value Tax under this Act or rules;
d) any Assistant Collector, Added Value Tax to exercise any of the powers of a Sub-Collector, Added Value Tax under this Act or rules;
e) any other added value tax officer to exercise any of the powers of an Assistant Collector, Added Value Tax under this Act or rules.
(2) A Collector may, unless the Board directs otherwise, empower any of his subordinate officers to exercise in the whole or any special area under his jurisdiction any of the powers of a Collector under this Act or rules or any of the powers of any other officer under this Act.
23. Entrustment of functions of added value officers to other officers.-
The Board may, by notification in the official Gazette, entrust, either conditionally or unconditionally, any functions of any added value tax officer under this Act to any other officer of the Government.
24. Assistance to the added value tax officers.-
All officers of Police, Bangladesh Rifles, Ansars, Excise, Customs, Income-tax and Intoxicant Control and all officers of Zila and Sub-Zila Administration are hereby empowered and required to assist added value tax officers in the discharge of their functions under this Act.
25. Power to summon persons.-
(1) Every added value tax officer not being in rank below a Superintendent may, together with a statement of the reasons for so doing in writing, serve a summons on any persons whose attendance he considers necessary either to give evidence or to produce a document or any other thing in any inquiry which such officer is making for the purpose of this Act.
(2) All persons summoned under sub-section (1) shall be bound to attend either in person or by an authorised agent, as such officer may direct:
Provided that no person exempted from attending any court in person under the sections 132 and 133 of the Code of Civil Procedure, 1908 (Act V of 1908) shall be called upon to attend in person.
(3) Every inquiry made by an added value tax officer shall be deemed to be judicial proceedings under the sections 193 and 228 of the Penal Code, 1860 (Act XLV of 1860).
26. Authorised officers entitled to enter premises, to inspect stored goods and to examine accounts and records.-
(1) Every added value tax officer authorised in this behalf by the Collector shall be entitled to enter the business premises of any registered or registrable person and such officer may, after giving due notice to the registered or registrable person, inspect his stored goods and examine his accounts and may at any time examine his records.
(2) Where an authorised officer wishes to get informed on anything related to the matters mentioned above, the registered or registrable person shall supply informations or give an explanation in accordance with the wish of the said officer.
27. Seizure of goods liable to confiscation.-
(1) Every added value tax officer authorised in this behalf by the Collector may seize any goods liable to confiscation, and where it is not possible to seize any such goods, he may serve on the owner of such goods or any person holding them in his possession or charge an order that he shall not remove, part with, or otherwise deal with the goods except with the previous permission of such officer.
(2) There shall be issued to the owner of the seized goods within two months of the seizure of the goods a show cause notice stating the reasons for the proposed confiscation of the goods seized under sub-section (1), and he shall be given opportunity to submit an answer in writing against the charge brought against him and, if he expresses his wish, opportunity for a hearing either in person or through a counsel nominated by him:
Provided that the aforesaid period of two months may, for reasons to be recorded in writing, be extended by the Controller by a period not exceeding two months:
Provided further that, where an order for confiscation of any goods or for imposition of any penalty has been passed in view of a confession of guilt in writing of the owner of the goods or the person concerned and where such owner or person concerned declares in writing his consent, not being prejudicial to the right to appeal against such order passed without show cause notice,to comply with the order, the provision of this sub-section shall not be applicable against such order.
(3) Where no show cause notice in accordance with sub-section (2) is issued to the owner of any goods seized under sub-section (1) within two month of the seizure of the goods or, as the case may be, within the period extended by the Collector, the goods shall be returned to the person from whose possession they were seized.
28. Goods seized how dealt with.-
In the case of preserving, disposing of, or otherwise dealing with, any goods seized under section 27, the provisions of section 169 of the Customs Act shall, subject to such changes as may be necessary, be applicable.
29. Procedure for sale of goods and application of sale proceeds.-
In the case of selling any goods, other than confiscated goods, under this Act and applying the sale proceeds, the provisions of section 201 of the Customs Act shall, subject to such changes as may be necessary, be applicable.
30. Confiscated goods how to be dealt with.-
The Board may, subject to rules, dispose of goods confiscated without restriction in favour of the Government in such way as it deems fit.
31. Maintenance of accounts.-
Every registrated person shall, in order to enable assessment of the tax that should have been paid by him to be determined, maintain and keep available at the site of his business, in such form and manner as may be prescribed,the following records relating to goods or services supplied by him or by any agent on his behalf:-
a) statement of purchases of taxable and tax-exempted goods and services and the invoices relating thereto;
b) statement of supplies of taxable and tax-exempted goods or services or statement of export of such goods and services and the invoices relating thereto;
c) the current account;
d) statement of account of the money deposited through bills with the treasury or any bank approved in this behalf by the Government for the purpose of paying added value tax;
e) statement of the stocks of materials and produced or manufactured goods; and
f) such records as may be prescribed:
Provided that the Board may, by notification in the official Gazette, specify the kinds of records to be maintained by all or any class of exporters or importers.
32. Tax invoice.-
Every registered person shall, when supplying taxable goods or taxable services or exporting goods or services or selling imported taxable goods, make out, in such form and manner as may be prescribed, a serial invoice:
Provided that-
a) no more than one invoice shall be made out for each supply of taxable goods or for each purchase of taxable imported goods or for (each) supply of taxable services or for each exportation of goods or services;
b) where any person claims to have lost the original tax invoice, the suppliers of the goods or services concerned shall make out to such person a copy, which shall be clearly marked “copy only”.
33. Period of maintenance of records.-
Every registered person required to maintain any records under section 31 shall maintain such records in Bangladesh for a period of no less than six years following the termination of the tax period to which they relate.
34. Presentation of records etc. .-
Whenever an added value officer passes an order to this effect, any registered person shall be bound to submit to such officer the records in his possession or under his control.
35. Presentation of returns.-
Every producer or manufactorer of taxable goods or supplier of taxable services shall, in such form and manners and within such period as may be prescibed, submit to the officer concerned a return for each tax period, together with a statement of all his taxes due under this Act.
36. Inspection of returns.-
(1) The records submitted by any person under section 35 shall, in such manner as may be prescribed, be inspected by the officer concerned as fast as possible, and if such inspection proves that the tax paid by the said person is less than the tax payable by him under this Act, the officer concerned shall direct such person by order to pay the unpaid amount of tax, within seven days after receipt of the order,-
a) in the case of supply of goods, through adjustment in the current account; and
b) in the case of supply of services, in such way as he may determine in this behalf.
(2) If an inspection under sub-section (1) proves that the person concerned has paid an amount of tax in excess of the tax payable by him under this Act, the officer concerned shall, by order, give him opportunity to credit such excess amount of paid tax against the tax payable by him in the succeeding tax period.
(3) If during the inspection of a return submitted under section 35 the officer concerned believes that it is necessary to assess the real material-product relation of any taxable goods or believes that the quantity of supplied taxable goods or services and the amount of money received from such supply has been shown less than it had been, he may make arrangements for such investigations as may be necessary for the assessment of the real material-product relation of the said goods or, as the case may be, the assessment of the quantity of the said goods and services and of the amount of money received therefrom.
(4) Where any registered person fails to furnish a return under section 35 or supplies, in the return submitted under the said section, any information which he knew or had sufficient reason to believe to be untrue, as a result of which the amount of the paid tax is diminished or, in the case of exports, the amount of money liable to refund claimed by him exceeds the true amount, the officer concerned may, without prejudice to any provision of punishment under this Act or rules, after giving to the said person reasonable opportunity for a hearing, determine, on the basis of information collected by an added value tax officer or of investigations conducted under sub-section (3), the true amount of added value tax to be paid or money liable to refund, and the said person shall be bound to pay the tax determined in such way and to accept the refund fixed in such way.
37. Offences and punishments.-
(1) If any person-
a) fails to make an application for registration, notwithstanding his being required to make such application under this Act; or
b) fails to furnish a return within the period determined; or
c) fails to inform the added value officer about any change in the informations relating to the registration; or
d) fails to comply with any summons under section 25; or
e) transgresses any other provision of this Act,
he shall be punishable with a fine amounting to fifty thousand Takas.
(2) If any person-
a) does not make out tax invoices or makes out tax invoices which are untrue in respect of important information; or
b) furnishes returns which are untrue in respect of important information; or
c) commits or intends to commit tax evasion by submitting counterfeited or false documents to the added value tax officer; or
d) does not maintain any records required to be maintained in accordance with this Act or rules or destroys or alters or mutilates or falsifies any such records or does not maintain such records in accordance with the requirements of this Act; or
e)intentionally submits false statements or false declarations; or
f) prevents any added value tax officer authorized under this Act to inspect or seize any records, books or any other documents from entering the place of his business or impedes the entrance of such officer; or
g) is involved in the acquisition of, or in the acquiring in possession of, or in any transactions with, any goods which he knows or has reason to believe to be goods which are chargeable with an added value tax or, as the case may be, an additional duty of customs which has not been paid; or
h) receives a remission of input tax through counterfeited or false invoices; or
i) evades, or intents to evade, added value tax or additional duties of customs in any other way; or
j) submits, though not being a registered person, any tax invoice in which is stated an amount of added value tax; or
k) does, or abets, any of the acts mentioned in the clauses a) to j) ;
such person shall be punishable with a fine not exceeding fifty thousand Takas or a fine not exceeding twice the amount of the added value tax or, as the case may be, added value tax and additional duties of customs payable on the supply of the goods or services concerned, whichever is higher, and shall, upon conviction before a Magistrate for the said act, be punishable with imprisonment for a term not exceeding one year or fine not exceeding fifty thousand Takas or both.
(3) If any registered supplier of services fails to furnish a return within the prescribed period or fails to pay added value tax or, as the case may be, added value tax and additional duties of customs, he shall pay such unpaid added value tax or, as the case may be, added value tax and additional duties of customs, together with an additional tax at a monthly rate of two per cent charged on such tax and duties.
(4) Notwithstanding anything contained in this Act in any other place, if any registrated person fails, though having twice received a notice in this behalf from the officer concerned, to pay the added value tax or, as the case may be, added value tax and additional duties of customs within three months after termination of the tax period or commits any of the offenses mentioned in section 38 at least twice within any twelve months, or if any registrable person fails, though having been directed to have himself registered in accordance with sub-section (4) of section 15, to have himself registered within one month after receipt of the direction, the business premises of such registrated or registrable persons shall be locked.
38. Confiscation.-
If-
(1) any registrable person produces or manufactures, before being registered, any taxable goods, such goods shall be confiscated; or
(2) any registered person-
a) removes any taxable goods without invoice from the business premises, or
b) removes any such taxable goods with the invoice from the business premises as reach their place of destination without such invoice, such goods shall be confiscated and such person, his agent or any person involved in the said removal shall be punishable with a fine amounting to fifty thousand Takas or shall pay twice the amount of the added value tax or, as the case may be, added value tax and additional duties of customs payable on the said goods, whichever is higher.
39. Extent of confiscation.-
(1) Confiscation of any goods under this Act includes any package in which they are found, and all other contents thereof.
(2) Every conveyance of whatever kind used in the removal of any goods liable to confiscation under this Act shall also be liable to confiscation:
Provided that, where a conveyance liable to confiscation has been seized by an added value officer, the Collector, Added Value Tax may, in such circumstance as may be prescribed by rules, pending the adjudication of the case involving the confiscation of the said goods, give order to release the conveyance if the owner of the conveyance furnishes him with a sufficient guarantee from a scheduled bank for the due production of the conveyance at any time and place it is required by the Collector, Added Value Tax to be produced.
(3) Confiscation of any vessel under this Act includes her tackle, apparel and furniture.
40. Power of adjudication.-
Cases involving the confiscation (of goods) or the imposition of fines under this Act or any rules shall be adjudicated,-
a) in the case of imports and exports, in accordance with the provisions of section 179 of the Customs Act; and
b) in the case of supply (of goods) and services,-i) by the Collector, Added Value Tax, where a value limit for the goods shall not be applicable;
ii) subject to such value limits and conditions, if any, as the Board may, by notification in the official Gazette, specify and impose from time to time, by any Additional Collector, Added Value Tax, Joint-Collector, Added Value Tax, Sub-Collector, Added Value Tax, Assistant Collector, Added Value Tax or any Superintendent, Added Value Tax.
41. Imposition of fine in lieu of confiscation.-
Whenever it has been decided to confiscate any goods under this Act or the rules, the adjudicating officer may give the owner of the goods opportunity to release such goods by paying in lieu of the confiscation the tax, other public dues, fine payable on such goods and such fine as the said officer may think fit:
Provided that nothing of this section shall apply in the case of goods the importation of which has been forbidden by or under this Act.
42. Appeal.-
(1) Any added tax value officer and any person aggrieved by any decision or order passed by any added value officer under this Act or any rules may, within three months of the date of such decision or order, appeal against such decision or order, excepting, in the case of supply of goods or services, any order to detain or sell (any goods) passed under section 56 or, in the case of importation of goods, any order under section 82 and section 98 of the Customs Act, to the Board or, in such cases as the Government directs, to any added value officer not lower in rank than a Joint-Collector; and the appellate authority may thereupon make such inquiries and collect such informations as it thinks necessary and, after giving the appellant an opportunity to be heard, pass such order as it thinks fit, confirming, altering or annulling the decision or order appealed against:
Provided that the appellate authority may, if it is satisfied that the appellant had sufficient cause for his inability to file the appeal within the period of three months mentioned above, permit the appellant to file the appeal within the two months following next to the said period.
(2) Any person desirous of appealing under sub-section (1) against any decision or order relating to added value tax demanded in respect of any goods or services which have ceased to be under the control of added value tax authorities or to any penalty levied under this Act shall, at the time of filing his appeal or if he is so permitted by the appellate authority at any later stage before the consideration of the appeal, deposit with the appropriate added value tax officer an amount equal in value to the added value demanded or the penalty levied:
Provided that such person may, instead of depositing as aforesaid the entire amount of the penalty, deposit only fifty percent thereof in cash and furnish a guarantee from a scheduled bank for the due payment of the outstanding fifty percent:
Provided further that where, in any particular case, the appellate authority is of the opinion that the deposit of an amount equal in value to the added value tax demanded or the penalty levied will cause undue hardship to the appellant, it may exempt the appellant from the obligation to deposit such amount, either unconditionally or subject to such conditions as it may deem fit to impose.
(3) No appeal under this sub-section shall be made in the case of any decision or order in relation to which any proceedings have been instituted by the Board under section 43.
43. Power of the Board to call for and examine records, etc..-
(1) The Board may of its own motion call for and examine the records of any proceedings under this Act for the purpose of satisfying itself as to the the legality or propriety of any decision or order passed therein by an added value tax officer subordinate to it and may pass such orders as it thinks fit:
Provided that no order confiscating goods of greater value, or enhancing any fine in lieu of confiscation, or imposing any penalty, or requiring payment of any added value tax or, as the case may be, additional duties of customs not levied or short-levied shall be passed unless the person affected thereby has been given an opportunity of showing cause against it and of being heard in person or through a councel or other person duly authorised by him.
(2) No record of any proceedings relating to any decision or order passed by an added value tax officer shall be called for and examinated under sub-section (1) after the expiry of two years from the date of such decision or order.
(3) No proceedings under sub-section (1) shall, in case of any appeal under sub-section (1) of section 42 being pending, be commenced until such appeal has been decided upon.
44. Power of the Board to rectify mistakes, etc..-
(1) The Board may rectify any apparent mistake or omission from the records of any order passed in accordance with any provision of this Act or rules either of its own motion or on the application of any person within one year after the date of such order:
Provided that no rectification enhancing any penalty or enforcing the payment of added value tax or, as the case may be, additional duties of customs shall be made unless the person affected by such rectification has been given an opportunity of being heard in person or through a councel or other person duly authorised by him.
(2) No proceedings under sub-section (1) shall, in case of any application under section 45 having been made, be commenced and no such proceedings shall, in case of any such application being pending, be continued.
45. Power of the Government to make revision.-
The Government may, on the application of any person aggrieved by any decision or order passed under section 42 or section 43 by the Board or any added value tax officer, or an order passed under section 43 by the Board confiscating goods of greater value or enhancing any fine in lieu of confiscation or imposing any penalty or requiring payment of any tax not levied or short-levied, if the application is made within four months of the date of such decision or order, pass such order in relation thereto as it thinks fit:
Provided that the Government may, if it is satisfied that the applicant has sufficient cause for his inability to make the application within the period of four months mentioned above, permit the applicant to make his application within the four months following next to the said period:
Provided further that no order confiscating goods of greater value, or enhancing any fine in lieu of confiscation, or imposing any penalty, or requiring payment of added value tax or, as the case may be, additional duties of customs not levied or short-levied shall be passed unless the person affected thereby has been given an opportunity of showing cause against it or of being heard in person or through a counsel or other person duly authorised by him.
46. Attendance through authorised representatives.-
Every person entitled or called on to appear before any added value tax officer, appellate authority, the Board or the Government on the occasion of any proceedings under this Act or rules may attend through any person stated in section 196A of the Customs Act and the provision of the said section shall be applicable to him as if it had been made under this Act for attendance under this section.
47. Power of the Government to call for and examine records, etc..-
The Board may, of its own motion or on the application of any person, call for and examine the records of any proceedings relating to any order under this Act or rules within one year from the date of such order for the purpose of satisfying itself as to the legality or propriety of the said order and may, on such examination, rectify any apparent mistake or omission and pass such order in relation thereto as it thinks fit:
Provided that no order confiscating goods of greater value, or enhancing any fine inlieu of confiscation, or imposing any fine or requiring the payment of a higher amount of added value tax or, as the case may be, additional duties of customs shall be passed unless the person affected thereby has been given an opportunity of showing cause against it and of being heard in person or through a counsel or other person duly authorised by him.
48. Power to search.-
The Board may, by order in writing, empower any added value tax officer to enter any place, premises, vessel or any other conveyance if he believes or has reasonable grounds to believe that such place, premises, vessel or other conveyance has, in contravention of the provisions of this Act or any rules, been, or is being, used for the supply or transport of any goods or services chargeable with added value tax under this Act and he may also be authorised by the said order to search such place, premises, vessel or conveyance.
49. Power to arrest.-
Any added value tax officer authorised in this behalf by the Board who has reasonable grounds to believe that any person has committed an offence punishable under this Act may arrest such person.
50. Cases in which no arrest shall be carried out without warrant.-
Notwithstanding anything contained in the Code of Criminal Procedure, 1898 (Act V of 1898), heretoafter referred to as the Code of Criminal Procedure, no offender shall, in the case of offences stated in section 37, be arrested within the purview of the said Code without warrant.
51. Manner in which to carry out searches and arrests.-
All searches and arrests under this Act or any rules shall be carried out in accordance with the provisions of the Code of Criminal Procedure relating to searches and arrests, respectively.
52. Manner in which to dispose of arrested persons.-
Every person arrested under this Act shall be taken forthwith before the nearest added value tax officer who is authorised by the Collector, Added Value Tax to take any such arrested person before the Magistrate or, if there is no such added value tax officer within a reasonable distance, to the officer-in-charge of the nearest police-station.
53. Officer-in-charge of a police-station how to act.-
The officer-in-charge of a police-station before whom any person is taken under section 53 shall admit him to bail to appear before a Magistrate having jurisduction or, if no bail has been granted, have him taken in custody before such Magistrate.
54. Added value tax officer how to carry out inquiries against persons arrested under section 52.-
(1) When any person is taken before an added value tax officer under section 52, such officer shall proceed to inquire into the charge against such person.
(2) For this purpose, the added value tax officer may exercise the same powers, and shall be subject to the same provisions, as an officer-in-charge of a police-station may exercise or is subject to under the Code of Criminal Procedure, when investigating a cognizable offence:
Provided that,-
a) if the added value tax officer is of opinion that there is sufficient evidence or reasonable ground of suspicion against the accused person, he shall admit him to bail to appear before a Magistrate having jurisdiction or have him taken in custody before such Magistrate;
b) if it appears to the added value tax officer that there is no sufficient evidence or reasonable ground of suspicion against the accused person, he shall release the accused person on his executing a bond, with or without securities as the officer may direct, to appear, if and when so required, before the Magistrate having jurisdiction and shall make a full report of the case to his immediate superior.
55. Recovery of short-levied added value tax.-
(1) Where for any reasons any added value tax or, as the case may be, any added value tax and additional duties of customs payable on the supply of goods or services has not been levied or paid or has been short-levied or short-paid or has been erroneously refunded, the person liable to pay the added value tax or, as the case may be, the added value tax and additional duties of customs or the person to whom it has been erroneously refunded shall be served with a notice in writing within three years of the date on which it was payable or of the date on which it had been paid or adjusted in the current account, if any, or of the date of the refundment, requiring him to pay the added value tax or, as the case may be, the added value tax and additional duties of customs.
(2) Where, in the case of imported goods, any added value tax or, as the case may be, any added value tax and additional duties of customs has for any reasons not been paid or short-paid or refunded, it shall be realized in accordance with the provisions of section 32 of the Customs Act.
(3) If any person liable to pay the said added value tax or, as the case may be, the said added value tax and additional duties of customs raises an objection in writing against the said claim, such person shall be given opportunity for a hearing.
56. Recovery of Government dues.-
(1) Where there is any added value tax assessed or, as the case may be, added value tax and additional duties of customs or any penalty imposed or any amount claimed under any bond or other instrument executed under this Act or the rules recoverable from any person, the added value tax officer-
a) shall deduct such amount from any money payable to the person from whom the said amount is recoverable from the said officer or any income, customs or excise officer, provided that such money is under the control of such officers;
b) may direct by notice in writing any such person as holds, or may hold in future, any money in behalf of, or on account of, the person from whom the said amount is recoverable to pay, within seven days from receipt of the notice, to the said officer such amount of money as may be stated in the notice;
c) may prevent the removal of any goods or the supply of any services from the business premises of the said person until the said amount has been fully paid or recovered;
d) may put the business premises of the said person under lock until the said amount has been fully paid or recovered;
e) may attach and sell or sell without attachment any property, whether movable or immovable, of the person from whom the said amount is recoverable;
f) may recover the said amount by seizing and selling any goods in the possession of the person from whom the said amount is recoverable, provided that such goods are under the control of any added value tax officer or customs officer.
(2) If the amount cannot be recovered from such person in the manner provided in sub-section (1), the appropriate officer shall send to the Collector of the District in which such person resides or owns any property or carries on his business a certificate signed by him and specifying the amount recoverable from such person; and such Collector shall on receiving such certificate proceed to recover the amount specified in the certificate as a public demand or an arrear of land revenue.
57. Service of order, decision etc..-
Any order or decision passed or any summons or notice passed under this Act shall be served-
a) by tendering the order, decision, summons or notice to the person for whom it is intended or to his agent or by sending it by registered post acknowledgement due to the person for whom it is intended or to his agent; or
b) if the order, decision, summons or notice cannot be served in the manner provided in clause a), by affixing it on the notice board of the local added value tax office.
58. No compensation for loss or injury excepting proof of neglect or wilful act.-
No owner of goods shall be entitled to claim from any added value tax officer compensation for the loss of such goods for dammage done to them at any time while they remain or are lawfully detained in any warehouse of the added value tax department, customs-area, wharf or landing place under the charge of any added value tax officer, unless it be proved that such loss or dammage was occasioned by gross negligence or wilful act of such officer.
59. Transfer of ownership.-
No registered person may transfer the ownership of his business until he has paid in full all the added value tax or, as the case may be, added value tax and additional duties of customs payable under this Act during the carrying on of such business.
60. Application of other Acts in the case of the Added Value Tax Act.-
The Government may, by publication in the official Gazette, declare any provision, so altered as may be required, of the rules made under the Customs Act or the Excises and Salt Act, 1944 (I of 1944) applicable within the scope of application of this Act.
61. Bar of jurisdiction of courts.-
No suit may be filed at any civil court for the cancellation or alteration of any order issued under this Act or of the assessment, levy or recovery of any added value tax or, as the case may be, any added value tax and additional duties of customs.
62. Protection of action taken in good faith.-
No civil or criminal suit or other legal proceeding shall be filed or instituted against the Government or any public servant for any damage likely to be caused to any person as a result of anything done in good faith under this Act or any rules.
63. Property of deceased persons.-
The tax liability of any deceased person registered under this Act shall be deemed to be a preferential claim on the property which the heirs have received from him by way of inheritance.
64. Liability of insolvent persons.-
(1) Where any registered person has been declared insolvent, the tax liability of such person shall devolve on the property under insolvency, if the business relating to such property is not interrupted.
(2) Where a tax liabilty comes into existence during the time of carrying on a business relating to such property as has come under insolvency, the payable added value tax or, as the case may be, added value tax and additional duties of customs shall be deemed to be current expenditures on account of carrying on the business relating to such property and shall be paid before meeting the demands of other creditors.
65. Removal of difficulties.-
If any difficulty arises in giving effect to the provisions of this Act, the Government may, by order, take such measures as it considers necessary for the purpose of removing such difficulty.
66. Power to deliver certain goods without payment of added value tax and to repay added value tax on certain goods.-
Subject to such conditions, limitations or restrictions as it thinks fit to impose, the Board may, in such general cases as may be presribed by rules or in particular cases by special order, in accordance with the provision of section 21 of the Customs Act, authorize the delivery of certain goods without payment of added value tax or, as the case may be, added value tax and additional duties of customs or the repayment of the added value tax or, as the case may be, added value tax and additional duties of customs paid on certain goods.
67. Limit for claiming refunds.-
(1) No refund of any added value tax or, as the case may be, added value tax and additional duties of customs claimed to have been paid or over-paid through inadvertence, error or misconstruction shall be allowed, unless such claim is made within four months of the date of payment.
(2) In the case of added value tax or, as the case may be, added value tax and additional duties of customs having been paid provisionally in accordance with section 81 of the Customs Act, the said period of four months shall be counted from the date on which the said added value tax or, as the case may be, added value tax and additional duties of customs has been finally assessed and adjusted.
68. Drawback in the case of export of imported goods.-
Subject to the provisions of Chapter VI of the Customs Act, when any goods, capable of being easily identified, which have been imported into Bangladesh and upon which added value tax or, as the case may be, added value tax and additional duties of customs have been paid on importation, are exported to any place outside Bangladesh or as provisions or stores for use on board a conveyance proceeding to a foreign territory, the added value tax or, as the case may be, added value tax and additional duties of customs paid on such goods shall be paid back as drawbacks.
69. Drawback on goods taken into use between importation and exportation.-
Notwithstanding anything contained in section 68, the repayment of added value tax or, as the case may be, added value tax and additional duties of customs as drawback in respect of goods which have been taken into use between their importation and exportation shall be made in accordance with the provisions of the rules made in that behalf.
70. When no drawback allowed.-
Notwithstanding anything contained in section 67, 68 and 69, no drawbach shall be allowed in cases in which the conditions of section 39 of the Customs Act are applicable.
71. Correction of clerical errors, etc. .-
Clerical or arithmetical errors or mistakes in any tax assessment, adjudication, decision or order made or passed under this Act by the Government, the Board or any added value tax officer may, at any time, be corrected by the Government or the added value tax officer concerned or his successor in office, as the case may be.
72. Power to make rules.-
(1) The Board may, by publication in the official Gazette, make rules for carrying out the purposes of this Act.
(2) In particular, and without prejudice to the generality of the foregoing provision, in such rules provisions shall be made for all or any of the following matters, namely:-
a) the assessment and realisation of added value tax or additional duties of customs, the deduction of input tax and the determination of the authorities discharging duties under this Act;
b) the removal and transport of goods chargeable with added value tax from the place of their production or manufacture;
c) the appointment of public officers for supervising the application of any rule under this Act;
d) the separate storage at the place of production or manufacture of goods of taxable goods, goods exempted from tax and materials used in the production or manufacture of such goods;
e) the information required to be supplied under this Act by any person engaged in the supply of taxable goods or services;
f) the obligation to supply taxable goods only in packages, bags or receptables and to print, engrave or weave the retail price on the packages, bags or receptables in which they are supplied;
g) the confiscation of any goods in respect of which this Act or any rules have been transgressed;
h) the collection and examination of samples of produced or manufactured goods and the inspection, search and detention of conveyances transporting taxable goods;
i) the export of goods and services and the manner of granting exemptions and repayments regarding exportation;
j) the conferment on Collectors, Added Value Tax, of the power to pass written orders in respect of any matter which may arise from any rule made under this section.
(3) The Board may in the rules made under this section make a provision to the effect that any person who has transgressed a rule shall, without prejudice to any other measure taken against him under this Act, be punishable with a fine amounting to fifty thousand Takas or twice the amount of the added value tax or, as the case may be, added value tax and additional duties of customs payable on the supply of the goods or services concerned, whichever is higher, and the goods or services in respect of which the transgression did occur shall be confiscated in favour of the Government.
73. Repeals and savings.-
(1) Immediately on the commencement of this Act, the Business Turnover Tax Ordinance, 1982 (XVII of 1982) and the Sales Tax Ordinance, 1982 (XVIII of 1982), hereinafter referred to as the said Ordinances, shall stand repealed.
(2) Notwithstanding such repeal of the said Ordinances,-
a) all actions done or measures taken under the said Ordinances, insofar as they are not inconsistent with the provisions of this Act, shall, without prejudice to the actions done or measures taken in the meantime, be deemed to have been done or taken under this Act;
b) all rules made, orders passed, notifications or notices issued under the said Ordinances shall, subject to being consistent with the provisions of this Act, remain in force until they are repealed or amended and shall be deemed to have been made, passed or issued under this Act;
c) any tax, fee or other charge imposed by or under any of the said Ordinances which is outstanding immediately before the commencement of this Act shall be realised in accordance with the said Ordinances, as if the said Ordinances had not been repealed.
(3) The Added Value Tax Ordinance, 1991 (Ordinance No.26, 1991) stands hereby repealed.
(4) Notwithstanding the repeal under sub-section (3), any action done or measure taken under the repealed Ordinance shall be deemed to have been taken under this Act.
