Large Taxpayers Unit (Value-Added Tax) of the National Board of Revenue has demanded Tk 212.86 crore in unpaid VAT and excise duty from state-own Dhaka WASA, private Prime Bank Ltd and mobile operator Grameenphone Ltd.
The LTU on Monday and Tuesday issued separate letters signed by its commissioner Md Matiur Rahman to the organisations asking them to pay the amount to the government exchequer.
From the total, the LTU issued final demand notice to Dhaka WASA to pay Tk 176.75 crore in VAT, two letters including a show-cause notice with preliminary demand notice to Prime Bank to pay Tk 28.85 crore in excise duty and VAT and final demand notice to Grameenphone to pay Tk 7.26 crore in VAT on space and establishment rent.
The VAT office also asked the Premier Bank Ltd to provide documents, by next three working days, as a proof of its claimed VAT exemption on Tk 5,483.52 crore.
LTU will demand VAT at the rate of 15 per cent on the amount if the bank fails to prove the legal basis of its claim.
VAT officials said that Dhaka WASA evaded Tk 176.75 crore in VAT from July 2013 to June 2015.
A team of the LTU in April 2017 detected the evasion by examining the audit reports for the fiscal year 2013-2014 and FY 2014-2015 of the organisation.
The team found that the state-run agency paid only Tk 264.77 crore in VAT on its receipts from providing services to its clients and VAT deducted at source on procuring services against the total payable amount of Tk 441.52 crore.
Earlier in July, appearing at hearings before the LTU, Dhaka WASA claimed that they paid the VAT properly.
Even, the ogranisation paid VAT in higher amount against collection at Tk 219.33 crore from the consumers, it claimed.
But, the VAT authority rejected the claims saying that the organisation could not provide acceptable documents as proof.
On the other hand, it also deducted VAT at the rate of 5.5 per cent from payment to contractors for repair and maintenance services though the applicable rate is 15 per cent.
Officials said that the organisation would get three months for payment of the demanded amount or challenging the notice by filing a writ petition before the High Court or filing appeal by paying 10 per cent of the disputed amount before the NBR’s appellate tribunal.
In a letter to the Prime Bank Ltd, the LTU said that a team of six members on January 22, while visiting the headquarters of the bank, examined the consolidated statement of affairs or financial details and found that the bank did not deposit Tk 23.56 crore in excise duty to the government exchequer.
The LTU asked the bank to pay the unpaid excise duty without any delay.
In another letter, the VAT office served show-cause notice to the bank and asked to pay Tk 5.29 crore in unpaid VAT for the month of December last year.
Officials said that the team detected the evasion by Prime Bank by examining the general ledger and profit and loss account of the bank.
The payable VAT amount was Tk 12.31 crore in December but the bank paid only Tk 7.02 crore to the VAT office.
The bank will have to explain why the amount will not be paid within 15 days of issuance of the notice, according to the notice.
The bank, however, will be able to seek hearings within 15 days to explain its position.
In another final demand notice issued on Monday, the LTU asked the telecom operator Grameenphone to pay Tk 7.26 crore in unpaid VAT on floor space and establishment rent for the period from January-June 2017.
The notice has been issued after examining the written response of the operator and other rules and regulations, a high official of the NBR said.
He said that the LTU had also got verdict in its favour on the issue from VAT appellate tribunal on three separate cases filed by four mobile operators including GP.
Officials said that Premier Bank showed sales of VAT exempted and VAT free services worth Tk 5,483.52 crore in its VAT returns from January 2013 to December 2017.
The bank did not provide any documents with the returns as a proof of the claim however.
Earlier in December, the LTU asked the bank twice to furnish the documents against the sales but did not get any response from the bank.
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