Duty Arrear and Recovery Procedures

transcript

THE VALUE ADDED TAX ACT, 1991 ARREAR & PUBLIC DEMAND RECOVERY

SECTION : 55, 56 & RULE : 43

DR. MD. MATIUR RAHMANADDITIONAL DIRECTOR GENERALCustoms, Excise & VAT Training AcademySagorika Road, Chittagong.Phone: +880-31-751940Mobile : +8801819555000e-mail: matiur.rahman6650@yahoo.com

bcta2010@yahoo.com

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Vat registered Unit or eligible for registration

Turn over tax unit or eligible for registration

Manufurturer ServiceRenderer

VAT SD Turnover Tax

ARREAR : HOW & WHEN ARISE

i)During goods or services delivery

ii) Excess

Not paid

Less paid

Wrong adjustment in the book of account current

Refund

Drawback

to be continue .......

iii) At Import point/stage

iv) If Do not pay tax after taking action as per section 37 (2)

If not paid

Paid but leass

Fine, Penalties & Taxes arises out of Adjudication.

Demand issued under section 55 Un realized specific Tax Obligation under written Deed, Bond or

Undertaken.

VAT Audit, intelligence & inspection Department

Central Intelligence Cell Commissionerate Local Revenue & Audit Department.

Steps : Analyze, if correct follow all proceduresif not then give reply to respective department.

Audit Objection : By Other's

IN case of Specific duty

Turnover Tax VAT on Bricks Annual Fixation of VAT at retail stage as

per SRO No. 242 VAT Fixed by Commissioner as per

Section 26 (kha)(4). No hearing or issuance of notice needed.

Section 56 & Rule 43 will be appliedstraight way.

When & Where Section 55 will not Apply

DEMAND NOTICE : TIME LIMIT & RELATED ASPECTS

Due's Date : Within Five Years

For Unintentional Error at Import stage : RelatedDate will be count from date of Release order,date of Final Assessment in Case of ProvisionalAssessment. If wrongly Refund then Refunddate and in case of other's duty Paid date.

Sectio n32 or 83A of The Customs Act 1969 willbe followed for recovery of Govt. dues at importstage.

to be continue.....

DEMAND NOTICE : TIME LIMIT & RELATED ASPECTS

If it is Intentional deeds/Action then No TimeLimit & in this case Section 55 & 37 bothmust be applied, Section 36(4) also be applied.

Intentional Action:• Falsifying Statements made on VAT

return's, accounts or records.• Preparing or maintaining separate book• Mainly overstating input Tax to claim

rebate• Some cases under-declaration output Tax

DEMAND NOTICE :STEPS & PROCEDURES

1. Issue Demand Notice without delay2. Give Enclosure of all related documents i.e Details

information related to demand : documents;certificates & Statements [if any]

3. If Intentional then follow section 37(2)4. Give opportunity for compliance i.e. to hear

concerned unit or authorized representative5. After Written & Oral Submission : Examine

Analyse & Finalize demand6. Notice need to settle within 120 days after reply or

objection submitted by the party.7. Installment t 6 months time by commissioner.

For Un - Intentional error or mistake section 37(2) will not be applied. 11

After Finalization of Demand

Notice will be served not below the rank of Assistant Commissioner. Notice For Twice, each at lest 7 days time but

Two weeks for Force sale of moveable orimmoveable properties & Goods; Lock ofPremise etc type of enforcement. Hearing is a must After issuing Notice & Necessary hearing

section 56 will be applied. 12

When Section 56 & 43 will be applied

From any Customs, VAT & Income Tax Authority. From any Person to whom concerned person is a

receivable. Freezing Bank Account & deduct money from

Bank Account. Embargo on Goods or Service delivery Seizure of Transport [ with goods or without

goods]. 13

Arrear Recovery : Procedure[Section 56 & Rule 43]

to be continue.....

Locking Business Premises Sales of Fixed Assets; Moveable orImmoveable assets. Sales of any Goods under any VAT orCustoms Officer. BIN Lock & Embargo on release of goods. Certificate Case.

Arrear Recovery : Procedure[Section 56 & Rule 43]

I. First Copy : To other Person or OrganizationII. Second Copy : Received copy by other person or

organization.III. Third Copy : to defaulterIV. Fourth Copy: Office Copy.

For Bank Account Freeze : Notice as per VAT Form: 29

Demand Recovery : From other personVAT Form : MUSAK : 28 & 29

• To District Certificate Officer• Order must be written following rule 43 &

Section 56 (2)• Apply section 4,5,6 & 7 of The Public Demand

Recovery Act, 1913• Follow Bangladesh Form No. 1027, 1028 &

1030• Give all details information, documents &

necessary paper related to defaulter as enclosure.

Demand Recovery : Certificate Case

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Duty Arrear and Recovery Procedures

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