Customs Excise and VAT Commissionerate (Dhaka) South on Wednesday asked the Dhaka Club Limited to pay dues worth Tk 33.74 crore in value-added tax and supplementary duty in a week to avoid legal actions.
The commissionerate issued a letter to the DCL after the National Board of Revenue rejected the club authorities’ request for exemption from payment of the VAT and SD.
The DCL also requested the NBR to suspend activities of the field-level VAT office to recover the dues through measures under article 56 of the VAT Act 1991.
VAT wing of the NBR on March 29 rejected the pleas saying that there was no scope for offering exemption from payment of any tax after the amount was demanded following legal procedures.
In the letter signed by NBR second secretary (VAT policy) Kazi Rezaul Hassan, the NBR said that the demand was made as per VAT law and it found no scope for giving exemption.
The DCL on February 25 sent the letter to the NBR seeking exemption and suspension of legal measures, including not freezing bank accounts.
According to the revenue board, the commissionerate first detected the evasion in 2017 as the club authorities did not pay Tk 33.74 crore in VAT and SD for the period between October 2009 and June 2016.
Of the amount, Tk 26.70 crore was in VAT and Tk 7.05 crore in SD on services offered by the DCL.
The commissionerate has since then issued several notices with the warning of freezing bank accounts and recovering the money through legal measures to the DCL but the club authorities did not pay the dues.
The commissionerate has also extended the deadline for payment of the taxes following the club authorities’ request.
Officials of the commissionerate said that they informed the decision of the NBR’s VAT wing to the club authorities and asked it to pay the dues.
The office has the authority to take legal actions as per article 56, including freezing bank accounts and asking banks and other entities to recover the dues from the accounts and assets of the DCL, they said.
They said that they would seek directive from the NBR to take steps as per the article after the seven-day deadline expires.
Want stories like this in your inbox?
Sign up to exclusive daily email
More Stories from Miscellany