VAT evaders under scanner
The VAT Audit, Intelligence and Investigation Directorate has formed four teams mainly to bring under the associated law's purview eligible business organisations, including shopping malls, factories and service providers, which were not paying their dues.
Formed as per the National Board of Revenue's (NBR) instruction to grow the habit of paying tax, the teams have started surveying several popular shopping malls under the jurisdiction of the four VAT Commissionerates-Dhaka North, South, East and West.
"The teams will verify information they collect on whether registration certificates are displayed in a visible place," Moinul Khan, the directorate's director general, told The Daily Star.
Products and services being sold will be crosschecked with the local VAT office and online system to see if those require payment of VAT, he said.
"Their work is to ensure that buyers' tax is being deposited appropriately in the government coffer," said Khan.
"We are generating awareness among people such that both buyers and sellers are motivated to pay VAT and tax, and remain respectful towards the law," he added.
Moreover, those who already deposit VAT regularly at the state coffer will be better informed about the law's provisions, he said.
He thinks this activity would help build a culture encouraging payment of the VAT.
According to the VAT act, it is mandatory for VAT-eligible organisations to conduct business only when they have got themselves registered in this regard.
One provision stipulates that invoices be issued to buyers against sale of each product or service, and to forwardthe VAT paid by the buyer to the government treasury within 15 days past the month's end.
Violations stipulate recovering the VAT and imposition of fines and associated interest through investigations.
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