All big businesses to come under LTU

Staff Correspondent | Published: 22:23, Jun 11,2017 | Updated: 01:24, Jun 12,2017

 
 

The large taxpayers unit (value-added tax) of the National Board of Revenue may bring all the large-scale businesses across the country under its jurisdiction to ensure proper VAT collection from the entities and provide them better services.
The revenue board has formulated guidelines on selection of taxpayers for the LTU (VAT) expanding the jurisdiction of the unit across the country.
Previously, businesses running VAT-related activities from their Dhaka offices and paid on average Tk 5 crore in VAT in last three financial years were considered for bringing them under the control of the LTU.
According to the guidelines issued on June 1, businesses which paid on average Tk 10 crore in last three financial years would come under the LTU.
The revenue board will select the necessary number of businesses to bring them under the LTU, the guidelines said.
Currently, a total of 156 large businesses pay VAT to the LTU. The entities contributed Tk 30,417 crore or around 56 per cent of total VAT collected in the fiscal year 2015-16.
The NBR in August 2004 established the LTU (VAT) in a bid to develop a modern, information technology-based and functional type VAT administration for large businesses.
VAT officials at the unit work in a functional organisation structure with multiple wings such as audit, taxpayer service, revenue accounting, collection and enforcement instead of traditional method where a tax official looks after all issues of a taxpayer.
There was a provision for not bringing more than 200 businesses under the LTU in the previous guidelines.
Though there was a provision for setting up regional offices of the LTU to accommodate the large businesses which are operated outside Dhaka under the LTU, the unit concentrated its focus only on Dhaka due to a number of limitations.
Officials said that all the existing businesses under the unit would continue to pay tax in the unit irrespective of their average VAT payment in last three years.
A committee headed by NBR member (VAT policy) will select the business houses for bringing them under the jurisdiction of the LTU in line with the guidelines.
The committee every year in the month between August and September will scrutinise the documents of eligible businesses and recommend either bringing or withdrawing those from the jurisdiction of the LTU.
The NBR will publish a gazette notification incorporating the names of the selected businesses.
The business houses which will be excluded from the jurisdiction of the LTU will go back under the commissionerate under which geographical location of the entity operates.
Officials said that the revenue board framed the guidelines to accommodate the large businesses across the country under the LTU as the number of large businesses has been increasing with the expanding economy of the country.
The previous selection criteria was also complex as the revenue board would have to consider the amount of annual turnover, paid tax and issues related to associate and subsidiary companies of the large business houses.

More about:

Want stories like this in your inbox?

Sign up to exclusive daily email

Advertisement

images

 

Advertisement

images