Paper presented by: Ranjan Kumar Bhowmik rus Former Member National Board of Revenue ‘Why TDS, ©) Area of TOS y Reference sections and rules “Rate of deduction/collection “Name of the deducting/collecting authorities Time frame within which deducted tax is to be deposited ‘onsequences of failure to deduct/colllect/deposit “Monthly TDS statement “Submission of half yearly TDS returnYe Why TDS Pay As You Earn (PAYE) 2.Fiscal stability » 3,Revenue cert ty 4.Broadening tax base 5.Year round revenue collection by the Govt. 6.Time value of money 7-Reducing tax burden at the time of submitting return Table of TDS/TCS "sey 2 aseage rate Every pope Tcttng Gort sla Hower, carmasionrrat | Employer il not deduct ax fonertoemtempuyert©, | tseurce or wi educa ‘deduct lump sum every month | 3 igwer rate/amount in case aaeniiaG een, _an employee can produce @ rcerlovee A rotenone ero wl edt tom (rute22) ‘simon py 7 [Dasa on mA Masenon io Ary Pron reapnabie Banger Ba it sing sn payne. 3 [reerett on secures | 5 m% Tay Ba omer Kana ‘sung onsenTable of TOS oad _[ Rete Bese amount Tate Botcing Ahoy aq | oman | Toes [Gp ic i “emma | Set Upto Te Shan an0 aE | |:stalem | gate [ISTE sOeDMoTEReoe [sm |e Sma ws We Tadeore Te] s soe, Ngegaro @ 2 2 Seam tenet [a Santo, 3 Saeco ee mate em Fsteeroe eos ||» metccccndunrtemaen = tieetew || Docanerces 2 Semen Bisegeroe gam er 3 ioe | Seetreee Gate || >emnwnnpnd ose 2 eee | Fshauietnyre ines = seen =| Table of TDS/TCS (a) Oi supplied by oll marketing company ‘engaged in marketing of petroleum oll ‘and lubricant Rulets (b) Oil supplied by dealer or agent of oil ‘marketing company “Tax need otto be ceductd rom the il of tol pump sation 1% (€) Oil supplieg by Ol refinery a {(@) Gas supplied by Gas transmission ‘company to gas distribution company 3% {(@) Gas supply by gas distribution company 3%Table of TDS/TCS | ! oyster tnd oy Pee ‘Srl conact rig nterpieo a ‘eronunanorbogy etna sutese iSngacesn ‘ny ait jnital pron no covresTable of TDS/TCS 7 (CaF S2AAA 10% | Customs Commissioner ‘Agency ‘commission te2cy @ [Handmade | 825 | TO%onbenderow | Post Ofice Cigarete {2c}Table of TDS/TCS | “i 70,000: fr one arava easton eee Ti 60,0080 fr wo estan Sree Siena "Ti 160.000 ter eer Boel ‘enter 13 | Travel “521i | O30ion the wa va he Soko or any charge for | Anes and ie ‘caryng cargo (escuang embarston feos rove tax. | GSA Reereredlh fight seteynsrarcesecurty ax ard apa a) 0S enincemie bons, performance tans Fay other | bene ced by watever ame wl hve fo be clad | veg storms (a stad by8)xC sscommisonaracourt and 030% 14 UP Bonus | 527 3% Life insurance (However TOS wit net be applicable in case of | company death of such policy older} Table of TDS/TCS [3% of the amourt paid or credited in relation to purchase of goods for the purpose of trading or of reeling after process or conversion [1% of the amount paid or credited i relation 10] {otds invoiced to @ person uncer a financing arrangement. [Bis for procuremert of ree, wheat PaaS, orn, | ‘atic, peas, chick peas, lenis, ginger, turmeric. dred chils, pulses, maize, coarse flour, four, sal citable oll sugar, black peeper, cinnamon, Ccardemom, clove. date, cassia leat, computer, ‘computer accessories, ute, cotton, yarn and all kinds offs Bank Financial Inttution | suo 16 |Ucense fee or | 62 10% Mabie other fees pad | phone by mobie company phone company | | to regulatoryTable of TDS/TCS Tk: 3,000/-for Dhaka 8 Chitagong ciy | City Corporation, License corporation Pourashava Renewal Tk. 2,000)- for other ely corporation Tk. 4,000) for pourashava at district headquarters. Tk. 500/> for other pourashava 18 [Freight | 62M 15% on commission Person forward responsible for agency making such commission payment. Table of TDS/TCS 19 |UC 52) 5% Bank commission 20 | Import ‘Sec. 83 Usually 5% (Customs (52¢] 2 | encase nara ponte ay ie | Commie vem | ne | fusunorov onto tonne reevoarw = 21 | Service 52Q -— | Bank | charge on eee | tentaea Sates oes | prowdedby | resent eae personTable of TDS/TCS Iewservice on | 528 15% | Tax to be deducted from IGW International by Bank phone call [82c} 75% [Tax to be deducted from’ IOWANS by GW 75% | Ih case of outgomsg international call the JOVANS company 2nal ‘deduct tax @7.5% on the whole amount so pad Table of TDS/TCS ‘But oct nas power ost nn TS arcane Sua fn house propery ‘unt appeaen fines gerne rand Shipping Business of a resident [82C] ® ct tap earn nomanogenn deneeioaioneeian ‘Customs Commissioner ‘Sieoesouner ran)Table of TDS/TCS 25 [Manpower export | §38/17C | 10% | Bureau of Manpower. [82¢] con pertans sneha 26 [Rentof conference | 52P ae hall, convention Seo center, room, hall, oi hotel or restaurant Svan {other than rent 2 toner peso oes paid to Govt] Py 2 esa, cant ey 3 atten cr ° fotos vanessa Table of TDS/TCS Sead No. 27 | Export 220) 35 | Starevaang | E808 |(1]005% on varsacton vale(aterthenbord) | OSESOSE reuse 820}, {2) The stock exchange shall collet tx @ 10% ‘on the commision received or rsevable by 3 member ofa stock exchange for the ransaction of secures other than shares and mutual funds 2 | Pubic | CIT 17% a 6 ‘Auton 820] (incase oft acton erateis 1%) | 66D | 8 conanTable of TDS/TCS 20 | Signing money SP 15% Real estate developer paid by realestate company developer company to land owner [82¢ and Final) at | Aetoracwess 3 10% Program producer (ot applicabie total payment does not ‘exco0d Th. 10.0007) 32 [Nonresident courier | 53006 18% Toeal agent ofnon [e20) resident courler company Table of TDS/TCS [820 and Final) | 33 | Electricity (82C] 52N 6% PDB 34 [Salary of foreign] 52(0) 5% Diamond technician serving in [But it would not be cutting ‘any diamond cutting applicable to foreign industry Industry (62¢) technicians appointed after 3016/2010] 35 | Export Cash Incentive | S3DD0 10% BankTable of TDS/TCS 9 | Seaseip | SBE) | > 10% on deco, conan es deters rotor! | Compery Germann” | “|” charger" ary oterpayent sed wnsee ae 186 | sxe | > stm conpn sts pecs os rare ore (ser eons en shan DK |= asktomte pm inrtin wba roman te eoaineen sear Serediapenanifes Eola treme > owes cnect dort the te wad be fhe 3 ioe | io os Stage 3 ewninees | Yep nae a vee Y fitter ce tavearey [os |e a] fine pyr pc neyo ro wsea [108 aaa | seeensiomesl en musta 2G bet certtne dant 4 121 ithe payee i recognised provident fund, approved 7 | 5% pate hod ered operates le Soon toe eee Soe Table of TDS/TCS Te 1600 oF Tk 1,600 or Tk.1,000 oF ‘SubRegstar business “Tk 700 or Tk 200 per square meter for [2c] arr | fesidential bulking or apartment depending onthe area Tk 6500 ork 000 or TK3,500 oF 12,500 oF Tk.1,200 per square meter for commercial space depending on the area Land S3FF | 5% of the deed value of and at any area developer of Dhaka, Gazipur, Narayangon), (20) Munshugonj, Manikgon), Narshind!— & Chittagong district ‘Shin other district, aTable of TDS/TCS 0 | Invorance 3G 3% Tsurance Commission pai vo | [At the time of payment or | Compa agent of insurance ‘atthe ime oferedit company [$2C] | bohever cartier 4 |SuneyorofGeneral | GG 10% “General Insuranee/82C | Atte time of payment) | Insurance Company. Table of TDS/TCS ‘2 | sectind |” 5H | biterentrats depending onthe aren of Oak and Ctagong. Rte satay | iy | reonmerclendresentliond nd bang abo deren 1) | Win the radon of RAIDE and CDA excep asin sca Torvedtecmue 2c sa | Rane jai fea ares ons wang —] tg bocce ah BO CDN Daa [ony corponton ee Meotowaced be | Teas iin thon oT Pah fay Si Hen Matonaner mus c i sturBedetteue ‘Sub-Register ‘er wana ged nda Bnd ‘eatieaeed aeTable of TDS/TCS So] Heed Secon | Rate of Collection Collecting No. ‘author 48 [Registration of | 83H % Sub Registrar leasehold to be paid by the lessor property 44 [Transfer of aN 15% DSER CSE Share of Shareholder of Stock Exchange (eee Table of TDS/TCS 3 Wad] Section] _Rato of Dedusting Autry No. eduction 45 |Inerestonportafice| 531 | 10% | Post Ofce savings bank 7B | Rent of vacantland, | su | 6% | gator antedronoe waterbody ai plant & machinery Seyevtey Scone Shyer Shere ‘Atri con Benepe esay epeoteatge ata hay ‘hep ee or aprons cnr oneteno05 aan es bargaeh, hy watan a pono stead are 13Table of TDS/TCS Soom | to iri festa rv a eee os = ee = enero es Table of TCS ded ‘snag seas ceding 52 erhing sens nteceetre 52 (gare wat colecttanatthe A conaioned us time of registration or fitness. ouside Bu Iection: $3] ‘A cortioned (A) Musser on AC Minus Center 65 ree mover “Tc oor Tak er having payload capac exces Stns “Tuk, Lom or Tnk Lory having pala eapacy enceding 1.5 tos but not ceeding 38 ‘ha Lory or ek er having aod eapacty net exceeding tons Pita on human hue, mal or ksh condoned Tse NonAC Ts hill i a a ae % on oe o fal atTable of TCS inland ships engaged in carrying ‘Taka 125 per passenger passengers in inland water °% Cargo, Container (multipurpose) and Taka 170 per gross tonnage Coaster engaged in carrying goods in inland water Dump barge engaged In carrying ‘Taka 125 per gross tonnage. .g00ds in inland water r —, BIWTC wil collect tax at the | time of registration or ness. \ [Section: 538} ) U oe Table of TDS/TCS = eet aa Ta Oc ering aby [Cont panfon | St me DSE& CSE tote fers by ‘once sraveacers Seireser ofits | sonsanae ec) | 7 | casnweana veal @ 1% Comany is TN tan heat 15) ‘omseny @ 20% | Yd [However TOS wit be soci any ateton oa fdidend oa consay#ssch te en nye a onenon per” Stadler) Past 3 |teteryisac] | 85 2% Feson reponse x spams 15Table of TDS/TCS al a] [eee = ao =, || = eo a = = — = = chalets [om =] == = jettoretind [oem = fees ‘oF set-off or acinar rent 7 See. s adjustment ‘Sly orrenuneaton ~*~ ore = ee List of minimum tax u/s $2C 2 Raye cton 54) 18 pone sony ee soze) Fi) 2 Coty cen SA 2 Diamine ue) 4 CBF agency commision (xe. S2AAA) “21 Foreign buyer's agent (section S3EE) +) Se A Meleeninenmcer 5 tnt 2) Ge 28 mec tn 96) 1 Reneteertonsae, Ga) Mee vemstmeicnen 2 sa pages enaes uz SSS 2 torn ae oo pe enaenene rene SSS ae I aes ance 7c 12 importfother than raw-material mportiises 28 Signing money (section S3P) mal) say 2: aE RNC He Mimeenote a Myo tc niie370) Ferd ent ers) 15. tparteten se) = _ 2 Sen ec igsne ei tn Pale mtn se SSC 170)Consequence of non-compliance Tag deducting autorty wll be doer tobe a assess In dtau and sal be persona Tabet poy the tes [be 57) scaaneie Additional 29% ‘ime (sec. 57(2) ‘Penalty not exceeding Tk. 10,00,000 may be imposed fo being non-compliance. of any other provision of chapter-7 other than non/short deduction or non-deposit of Geducted tax to Govt treasury. (sec. S7{Ne)(8)] per month is also to be paid if ts not paid within the silted ‘it may be treated as an offence wich is punishable with imprisonment for aterm up ‘to 1 year with or ‘without fine if deducting authority Tails to deduct/collect tax Without reasonable cause (sec. 164(a)] ‘@ Revenue expenditure will be treated as business income for non-TDS [sec. 30] ‘capa expencitue wil be treated a income from other sources for non-TDS [sc 385) i ‘Where a person issues 2 TDS certificate without actual TDS, he shall be personally lable to pay the amount {sec. 574] Consequence of non-compliance + Tg geguting author wl be gore tobe an asesee in dtau and shal be personaly Tablet pay the tes [Soe S71 4 Addtjonal 2% per month is also to be paid if tis not paid within the stipulated ieee : + ena not exceeding T, 100000 may be moose fr being non-compliance. of fy other prowion of chapter other har no abort Gedo or nonepost oF dedicrad tanto Gove treasury. (see SVN aNS ‘hit may be treated as an offence which is punishable with imprisonment for a term up to'l Year with or without fine if deducting authority fals to deduct/collect ax. without reasonable cause {sec. 164(a)] ‘Revenue expenditure will be treated as business income for non-TDS {see. 30] + Capital expenciture will be treated as income from other sources for non-TDS [ec 3B ‘Where a person issues 2 TDS certificate without actual TDS, he shall be personally ble to pay the amount (sec. $74) 17Monthly TDS statement “A monthly statement of TDS from salary to be submitted in the form prescribed at Rule-21 to the concerned DCT within 20" day of the month following the end of the month of deduction { Section 58(3) read with Rule-21] ‘Another monthly statement of TDS from other than salary also to be submitted in the form prescribed at Rule-18(7) to the concerned DCT within 20" day of the month following the end of the month of deduction [Section 58(3) read with Rule-18(7)] “Penalty may be imposed for violation of this law which is ‘Tk5,000 plus Tk. 1,000 per month during which the default continues. [Section 124(2)(b)] TDS Return > Every company, co-operative society, NGO, MCO, University, Private ital, Clinic, Diagnostic Centre, Partnership Firm, Association of Person, English_medium school those who follows international ‘curticulum, Local authority and Artificial Juridical Person shall have to file withholding tax return to the concerned DCT at every 6 months interval at the form prescribed at Rule-24A accompanied by copy of treasury challan as a proof of TOS. > 1 Return by 31* January and the 2™ return by 31 July. OCT may ‘extend maximum 15 days time to submit such withholding tax return > DCT can do audit after taking approval from the Commissioner of Taxes ‘but no such return shall be selected for aucit after the expiry of 4 years. from the end of the year in which the return was filed [section-75AA]END OF THE PRESENTATION That