Scribd Logo
Upload

Welcome to Scribd!

  • VAT rebate methods for credit material purchases under 40 chars

    Uploaded by

    naimenim
    21 views1 page
    This document outlines methods for claiming VAT rebates for materials purchased on credit in Bangladesh. It notes that businesses often purchase materials on credit due to limited working capital. It then details 8 methods that can be followed to claim rebates in this situation: recording credit purchases in purchase books, claiming rebates in the purchase period, adjusting input VAT as purchases are paid, paying for purchases within 6 periods via bank, adjusting paid input VAT as decreasing adjustments when paid, complying with other VAT act provisions, completing all activities within 6 periods, and cancelling decreases if not followed properly. The rule is enacted under powers of the 2016 VAT Rules.

    Original Description:

    Original Title

    (Input VAT Rebate) Rule No 10-VAT-2020_in English

    Copyright

    © © All Rights Reserved

    Available Formats

    DOCX, PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    Report this Document
    This document outlines methods for claiming VAT rebates for materials purchased on credit in Bangladesh. It notes that businesses often purchase materials on credit due to limited working capital. It then details 8 methods that can be followed to claim rebates in this situation: recording credit purchases in purchase books, claiming rebates in the purchase period, adjusting input VAT as purchases are paid, paying for purchases within 6 periods via bank, adjusting paid input VAT as decreasing adjustments when paid, complying with other VAT act provisions, completing all activities within 6 periods, and cancelling decreases if not followed properly. The rule is enacted under powers of the 2016 VAT Rules.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    21 views1 page

    VAT rebate methods for credit material purchases under 40 chars

    Uploaded by

    naimenim
    This document outlines methods for claiming VAT rebates for materials purchased on credit in Bangladesh. It notes that businesses often purchase materials on credit due to limited working capital. It then details 8 methods that can be followed to claim rebates in this situation: recording credit purchases in purchase books, claiming rebates in the purchase period, adjusting input VAT as purchases are paid, paying for purchases within 6 periods via bank, adjusting paid input VAT as decreasing adjustments when paid, complying with other VAT act provisions, completing all activities within 6 periods, and cancelling decreases if not followed properly. The rule is enacted under powers of the 2016 VAT Rules.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    of 1

    Rule No: 10/VAT/2020 Date: 11 November, 2020

    Subject: The methods applicable for VAT rebate against credit purchase of materials.

    Purchase of materials on credit is practiced in business due to the scarcity of working capital. In
    terms of credit purchase of materials there is no requirement for instant bank payment of sales
    price. On the other hand, according to the clause (KA) of sub-section (1), section (46) of VAT
    and Supplementary Duty act, 2012, no rebate can be received if the taxable supplies amount
    above BDT 100,000 is not paid with a banking channel. In addition, there is an obligation to
    receive rebate on input VAT within four tax period in accordance with clause (GA) of sub-
    section (1), section (46). In this reason, such organization faces difficulty to receive rebate at the
    time of purchasing materials on credit. Therefore, the following methods for receiving rebate
    against credit purchase of materials have been applied to mitigate the said complexity
    considering the business practices. These are,

    a) In accordance with section (51) of VAT and Supplementary duty act, 2012, transections
    of material purchased with tax invoice (Mushok-6.3) have to be recorded in purchase
    book (Mushok-6.1) at the time of entering production center.
    b) Rebate on input VAT has to be received with (Mushok-9.1) at the same tax period when
    the materials are purchased.
    c) Input VAT payable for due payment on sales price of purchased material has to be
    adjusted as increasing adjustment in the same tax period as submitted (Mushok-9.1).
    d) The sales price of material purchased on credit has to be paid with banking channel
    within six tax period.
    e) After the payment of sales price of material purchased on credit with banking channel
    within six tax period, the paid input VAT against the sales price has to be adjusted as
    decreasing adjustment in any tax period issued (Mushok-9.1) within six tax period from
    the date of purchase.
    f) The other provisions of section (46) of VAT and Supplementary Duty act, 2012 have to
    be complied.
    g) The above activities for materials purchased on credit have to be completed within six tax
    period from the date of purchase.
    h) The accepted decreasing adjustment will be cancelable if the above methods are not
    properly followed.

    02) This rule is enacted with the applicable power given section (118) of VAT and
    Supplementary Duty Rules, 2016.

    You might also like