National Board of Revenue has asked courier service providing companies not to transport industrial and commercial goods without documents related to payment of value-added tax.
Transports of courier service providers must have VAT payment documents or VAT challan or invoice to carry goods to which VAT is applicable, it said.
VAT wing of NBR also instructed its field-level VAT officials to take stern actions against courier service providing agencies for violation of the law.
In a recent letter, NBR asked Courier Services Association of Bangladesh to disseminate the message to its members and refrain from making delivery of goods without tax invoice.
The revenue board’s field offices including 12 VAT commissionerates and VAT audit intelligence and investigation directorate were asked to enhance monitoring activities so that no courier service provider could carry or supply goods without VAT challan.
Officials said that there were allegations that courier service providers had been transporting industrial and commercial goods particularly electric and electronics products, cigarette and bidi without proper documents (VAT challan-11) related to VAT payment.
Unscrupulous traders are evading VAT through supply of goods across the country using vehicles of courier service providing companies, they said.
The government is losing huge amount of revenue from supply of goods, the letter said.
It said that the compliant businesses which paid VAT and taxes properly faced an uneven competition due to the malpractice affecting business environment, which was not acceptable in any way.
Transportation of goods without VAT documents is an offence under article 37 (2) of the VAT Act-1991, the letter said.
A senior VAT official told New Age that NBR on various occasions also received complaints from traders about supply of goods without payment of VAT.
Traders during the pre-budget discussion requested NBR to take actions against delivery of commercial goods without proper documents as it made their products costlier in the market, he said.
In most cases, there is 15 per cent VAT on supply of commercial goods such as electric, electronics, cosmetics, cigarette and bidi.
He said that transportation of non-commercial goods and personal items would not come under the purview of the instruction.
Field-level VAT officials and VAT intelligence officials often examine the VAT documents of goods loaded in commercial vehicles like trucks and covered vans on random basis or based on intelligence information.
Now they will also check the tax invoice of commercial goods if transported by courier service
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