Give supporting documents for VAT exemption

The National Board of Revenue has asked Premier Bank to furnish documents in favour of its sale of products and services totalling Tk 5,483 crore that have been claimed to be exempt from value-added tax.

In the letter on January 29 from NBR’s field office, Large Taxpayers Unit, the private bank has been instructed to furnish the documents within three days.

“The bank did not deposit VAT claiming that the sales of products and services were exempt from VAT and have zero VAT rate.  VAT will be payable if the bank fails to submit the proof,” said LTU Commissioner Md Matiur Rahman.

Premier Bank, in its submitted returns between January 2013 and October 2017, claimed sale of Tk 5,121 crore worth of products and services as VAT-exempt and Tk 362 crore worth of products and service as having zero rate of VAT, the LTU said.

The bank did not attach any document in favour of its claim, said the field office.

Officials said the bank did now not grant proof when the LTU asked for it twice in December closing year.

Instead of submitting documents, Premier Bank went to the High Court, Rahman said.

The High Court stayed the effectiveness of the LTU letter asking for proof for six months, stated Deputy Attorney General Israt Jahan. Last week, the chamber decide of Appellate Division of Supreme Court vacated the High Court’s remain for two weeks.

“Following the chamber judge’s order, there is no bar on asking for documents. The bank will have to publish documents,” Jahan added. Officials stated 15 percentage VAT will be relevant on the claimed sales of products and services if the financial institution fails to furnish documents.

“We will settle the problem through our felony adviser,” Moshfeque Alam Khan, head of bills and senior vice president of Premier Bank, instructed The Daily Star yesterday.