Calculation of ATV, AV, CD, RD, SD, VAT, and

AIT at Import stage

As per provisions of the VAT Act 2012 and Customs Act, every goods or service
imported and for charging different duty for clearance of said goods and services for
port. There is different way to determine Assessable Value on which basis Custom
Authority charge different rate like CD, SD, RD, VAT, and AIT. For considering
Assessable Value, many of consider International measurement basis or local law
basis, here we discussed some in below:

Assessable value (AV) calculation:

Assessable value = C&F + Insurance*+ Landing charge**  
C&F: Cost of the goods and freight charges
CIF: Cost of the goods, Insurance and freight charges

‘* If there no insurance amount mentioned in docs then 1% added to C&F for

determining Assessable value (AV)

‘**1% added as landing charge to C&F for determining Assessable value (AV)

Here, we assume that the assessable value is taka 100,000  and Rate for ATV/AV
@ 5%, then following rate and amount for Calculation of ATV, AV, CD, RD, SD,
VAT, and AIT at Import stage.

Advance Trade VAT (ATV) Calculation:

ATV is term used in VAT Act 1991 but the term ATV is changed as Advance VAT
u/s 31(2) of VAT Act 2012. However, ATV calculation system in given below:

Assessable value+ CD+SD (if any) + RD (if applicable) =

Ans*33.34%=Ans*5%=ATV (Advance Trade VAT)

Example:
Tk. 100,000(AV)+5,000(CD)+7,500(SD)+1,500(RD)=114,000*33.34%=38,008
=Tk. 114000+38008=152,008*5%=7,600 ATV

Advance VAT (AV) Calculation:

As per section 31(2) of VAT Act 2012 rate of advance VAT is 5% but for
manufacturer it is 4% for import of raw materials. This Advance Vat will have
to adjust within 4 tax period.

Assessable value+ CD+SD+ RD = Ans*5% (rate of AV) = AV (Advance VAT)

Example:
Tk. 100,000(AV)+5,000(CD)+7,500(SD)+1,500(RD)=114,000*5%=5,700 AV

Following sample calculation by considering the CD@20%, SD

@30%, RD@5%, VAT@15% and AIT@ 5%.

Customs Duty (CD) calculation:

Assessable value * rate of CD=Custom Duty

Example:
Tk. 100,000* 20%= Tk. 20,000 (Custom Duty)

Regulatory Duty (RD) calculation:

Assessable vale * rate of RD= Regulatory Duty

Example:
Tk. 100,000* 5%= Tk. 5,000 (Regulatory Duty)

Supplementary Duty (SD) calculation:

Assessable value+ CD+RD= Total value* rate of SD= Supplementary Duty  

Example:
Tk. 100,000+20,000+5,000=125,000*30%= Tk. 37,500 (Supplementary Duty)

VAT Calculation:

Assessable value+ CD+RD+SD= Total value* rate of VAT= VAT amount

Example:
Tk. 100,000+20,000+5,000+37,500=162,500*15%= Tk. 24,375 (VAT)

Advance Income Tax (AIT) Calculation:

Assessable value * rate of AIT= Advance Income Tax (AIT) amount  

Example:
Tk. 100,000*5%= Tk. 5,000 (AIT)
Here, I have Calculation of ATV, AV, CD, RD, SD, VAT, and AIT at Import stage.