VAT Training Day 7

Online Training session on
Value Added Tax (VAT) and It’s Practical Aspects Organized by :

For CA Students (2nd Batch : 2023) Dhaka Regional Committee (DRC)
Workshop Etiquette
 We strongly suggest you to use laptop or desktop screen instead of mobile to get the
best experience of this workshop.
 Keep your video on throughout the whole workshop to help us all having a smooth
session.
 Rename yourself with your official name and your organization name
(e.g. Anik Roy, Enroute).
 For any question during the session, write your question in the “Chat Box”.
 Turn on your audio only when asking a question (video mandatory) and start with your
name.
 Please be respectful to each other while communicating.
About the facilitator
Value Added Tax (VAT) and It’s Practical Aspects
Organized by :
For CA Students (1st Batch) Dhaka Regional Committee (DRC)
Rtn. Md. Anwaruzzaman FCA
VAT Agent and VAT Consultant (NBR Licensed)
Partner at Rahman Mostafa Alam & Co., Chartered Accountants
Consultant & Trainer at enroute.com.bd
Faculty Teacher and Member at Bangladesh VAT Professional Forum (BVPF)
Faculty Teacher at The Institute of Chartered Accountants of Bangladesh (ICAB)
Past Chairman, Dhaka Regional Committee (DRC) - ICAB
Fellow Member of The Institute of Chartered Accountants of Bangladesh (ICAB)
Fellow Member of The Institute of Internal Auditors Bangladesh (IIAB)

Welcome
Practical Training on VAT Laws
02.03.2023 (Day 7)
Presented By:
Rtn. Md. Anwaruzzaman FCA
VAT Agent & VAT Consultant
& Mobile : 01914-284705
Partner Email: mazamanrma@gmail.com
Rahman Mostafa Alam & Co.
Chartered Accountants
Topics SL Particulars Reference

1 Tax Determination Sec 73, Rule 57A
to be 2 Tax Determination for False declaration by the recipient of a supply Sec 74
covered 3 Tax Determination for False statement by Supplier Sec 75
4 Grant of tax benefit or its negation, Admissibility of tax determination notice Sec 76, 77; Rule 58
5 VAT Authority & Officers; Authority and Responsibilities Sec 78 – 79, Rule 59 – 65
6 Power of the Board to amend or alter an order or decision of VAT officer Sec 80
7 Delegation of power Sec 81
8 Assistance to VAT officers Sec 82
9 Power to enter and search by VAT officers Sec 83
10 Seizure of goods and disposal thereof Sec 84
11 Monetary limits of the VAT officers in initiating a proceeding for adjudication Sec 86
12 Power to Summons Sec 87
13 Powers and functions of the Custom officers, Confidentiality, Application of other laws Sec 88, 89, 89A
14 Audit and Investigation of a taxpayer's economic activities Sec 90, 90A,
15 Powers of the VAT Officers Sec 91
16 Supervised supply, observation & surveillance Sec 92, Rule 66
17 Multiple departmental audits Sec 93, Rule 66A
18 Special Audit Sec 94, Rule 67
Practical Tips
Questions and Answers
Tax determination:
2(27) "tax assessment" means an assessment of
net payable tax by any taxpayer under chapter
five;
2(28) "tax determination" means a determination

of tax by appropriate officer under chapter
eleven;
Tax determination: Sec 73

(1) In the following cases, the Commissioner or the appropriate officer mentioned in the
table of section 86 may, issue preliminary show cause notice any person to determine the
amount of tax payable by such person, namely—
(a) if, on examining of return‚ the Commissioner or the appropriate officer mentioned in the
table of section 86 is not satisfied as to the accuracy of such return or reasonably believes
that—
(i) in such return, the person has made false or untrue statement in respect of output
tax, supplementary duty or an increasing adjustment or a decreasing adjustment; or
(ii) in a turnover tax return, such person has made a false declaration in respect of his
turnover for any tax period;
(b) if such person fails to file a return within the prescribed time;
(c) if such person fails to pay the payable tax or Evade or Avoid; or
(d) if such person has been paid a refund or given a drawback to which he was not
entitled.
(2) If the person on whom tax is determined under sub-section (1) raises an objection in writing against the
said notice within the time specified in the show-cause notice under the said sub-section, he shall be given an
opportunity of being heard, and after considering the objection raised by the person concerned within 120 (one
hundred and twenty) days from the filing of the objection to the Commissioner or the appropriate officer specified in
the Schedule to section 86, which shall not include the time allowed in view of the application of the said person or if
no objection is filed, 120 (one hundred and twenty) from the date of issue of the notice under the said sub-section )
may determine the final tax by issuing a notice within days, which shall contain the following items along with
other necessary information, namely:-
(a) the reason for such tax determination, the amount of tax payable as a result of the determination and a description
of the basis on which such amount of tax is determined;
(b) the date by which such tax shall be payable; but such date shall be at least 15 (fifteen) working days after the
date on which the notice is served; and
(c) the time and place of filing appeal against such tax determination.
(3) The Commissioner or the appropriate officer specified in the Schedule to Section 86 shall not determine any tax
including an amended tax determination for the said tax period after 5 (five) years from the end of the tax period,
but in the case of a wholly export oriented industrial establishment more than 3 (three) years later, unless-
(a) a registered person willfully neglects or commits a fraud in filing a return; does not file the return for any tax
period; or claims a refund fraudulently for such tax period; or

(b) a registered person, in order to evade payment of taxes, conceals any information, or distorts it, or
issues tax invoices with false information or intentionally commits these, or other, offences; or
(c) an amended tax determination is required to give effect to a decision of a Court, the Appellate
Tribunal or the Value Added Tax Authority.
(4) Nothing in this section shall‚ in the following cases‚ prevent the Commissioner or the appropriate
officer mentioned in the table of section 86 from imposing and collecting any interest or
monetary penalty‚ namely:—
(a) in the case of computation from the original date for payment of the payable VAT, supplementary
duty or turnover tax; or
(b) in the case of computation from the date on which a refund was paid to a person and a tax
determination arises in order to make adjustments of such refunded money because such
person was paid such refund to which he was not entitled.
(5) Following examination of return, if any irregularity is detected of taking input tax credit or
decreasing adjustment, an officer not below the rank of an Assistant Commissioner can determine
the amount of tax payable following the method mentioned in sub-section (2).
Method of tax determination : Rule 57A

(1) If a registered or enlisted person fails to submit return within the time as described in
sub- section (l) of section 64, Commissioner or the appropriate officer specified
in the Schedule to Section 86 shall issue a notice to him in form “Mushak-11.1” for
delayed submission of return.
(2) If the person fails to submit return within 21 (Twenty One) days from the issuance of
notice, then the Commissioner shall issue notice of tax determination in form
“Mushak-11.2”
(3) If the person fails to submit return within the time described in sub-section (2) after
issuance of notice as per sub-section (1), the Board shall have the power to
temporarily lock BIN by using VAT online system in order to temporarily stop
the operation of its import-export and supply which involves VAT deducted at
source automatically; and, within 2 (Two) days of submission of return it will
be unlocked automatically.
Admissibility of tax determination notice : Sec 77

(1) Every original or attested copy of a notice of tax determination shall be so
admissible in a proceeding as a conclusive proof that the
determination has been duly made and, except in proceedings in
relation to tax determination, that the amount and all particulars of
the determination are correct.
(2) No tax determination made or executed may be quashed or deemed to be
void or voidable for not being made or executed in the prescribed
forms.
(3) No tax determination shall be affected or impaired for any omission‚ or
mistakes or defects therein, if it is in conformity with this Act, and the
name of person assessed or on whom tax may be imposed is cited in
such notice according to common understanding.
False declaration by the recipient of a supply : Sec 74
(1) If a supplier mistakenly treats a taxable supply as an exempted or a zero-rated one as a result of a false
declaration with an intent to cheat by the recipient of such supply, the Commissioner or the appropriate officer
specified in the Schedule to Section 86 may, after giving such recipient an opportunity of being heard, make a tax
determination against such recipient of such supply for payment of the payable VAT in respect of such supply,
including any payable interest or monetary penalty arising out of the late payment of the VAT, and such tax
determination shall be treated as a determination of VAT payable by such recipient, whether registered or not.
(2) The Commissioner or the appropriate officer specified in the Schedule to Section 86 shall serve on the recipient of a
supply a notice of tax determination which shall‚ in addition to other necessary matters, contain the following
information, namely:— (a) the reason for such tax determination;
(b) the amount of VAT payable as a result of such tax determination;
(c) the date on which such VAT shall be payable; and
(d) the time and place of filing appeal against such tax determination.
(3) Nothing in sub-section (1) shall prevent a Commissioner or the appropriate officer specified in the Schedule to
Section 86 from recovering the payable VAT, interest or monetary penalty in relation to such supply from a supplier,
and from recovering a portion of the payable amount from the supplier and the other portion from the recipient.
(4) If a supplier pays to the Commissioner or the appropriate officer specified in the Schedule to Section 86 , as a result
of any fraudulence or a false statement made by a recipient of a supply, an amount of VAT, interest, or monetary
penalty for such supply, he may recover the amount so paid from the recipient of such supply.
False statement by supplier: Sec 75
(1) Where a person who is not registered makes a supply of a goods to the recipient of a
supply and issues a false document purporting to be a tax invoice, which makes such
supply appear like a taxable supply, such supply shall be treated as a taxable supply, and
if such person is registered, the applicable rate would be the rate that would have been
applicable to such supply:
Provided that if a higher rate is shown on, or is understood from, the documents,
such higher rate shall be applicable.
(2) The Commissioner or the appropriate officer specified in the Schedule to Section 86 shall,
after giving such person an opportunity of being heard, treat such person as a registered
person and make a tax determination treating such supply as a taxable supply.
Grant of tax benefit or its negation: Sec 76

(1) If any person takes or tries to take any tax benefit, through any
scheme, by misinterpreting or misusing any of the provisions of this Act, then
the commissioner may, after giving such taxpayer an opportunity of being
heard, in specified cases and manners, pass such reasonable order for
assessing the accuracy, determination, negation or curtailment of tax benefit
and fix the responsibility of the beneficiary as if the particular proposal was
not accepted or not made effective.
(2) For the purposes of this section, "Scheme" includes a course of
action and an agreement, arrangement, promise, plan, proposal, or
undertaking, whether express or implied and whether or not legally
enforceable.
Negation of tax advantage from special scheme : Rule 58
(1) The Commissioner can calculate the liable amounts of the person who is getting the tax advantage in
such a way, assuming the special scheme has not been accepted yet or implemented or the Commissioner shall
calculate that persons liability according to the provisions of this Rule mentioned subsequently which shall be
appropriate for assessing appropriateness, determining, negating or deducting the tax advantage.
(2) For the purposes of Sub-Rule (1), the Commissioner can take any one or all of the following measures, viz:–
(a) Can consider that an incident didn’t happen which really happened;
(b) Can consider that an incident had happened which really hadn’t happened and if deems proper, then shall
consider the incident in the following manner:
(i) The incident had happened at a specified time; and
(ii) A special function had been performed with the involvement of a special person;
(c) The Commissioner can consider a special incident which had really happened in the following manner:
(i) That happened in any other time from the actual happening time; or
(ii) Any special function had been carried out with the involvement of a special person (whether that had been
caused by that person by involving in a function or not).
(3) Where the liability is calculated by the Commissioner under Sub-Rule (1), that person shall be given an
opportunity of hearing and he shall be informed about the tax calculation of every tax-period with loss and shall issue
notice for tax determination.
Admissibility of tax determination notice.— : Sec 77
(1) Every original or attested copy of a notice of Final tax determination shall be so admissible in a
proceeding as a conclusive proof that the determination has been duly made and, except in proceedings
in relation to tax determination, that the amount and all particulars of the determination are correct.
(2) No tax determination made or executed may be quashed or deemed to be void or voidable for not being
made or executed in the prescribed forms.
(3) No tax determination shall be affected or impaired for any omission‚ or mistakes or defects therein, if it is
in conformity with this Act, and the name of person assessed or on whom tax may be imposed is cited in
Final notice according to common understanding.
Value Added Tax Authority and officers thereof : Sec 78

Value Added Tax Authority shall be constituted with the Board, one or more Value Added Tax Offices there under and the officers
specified below, namely—
(a) Chief Commissioner, Value Added Tax;
(b) Commissioner, Value Added Tax;
(c) Commissioner (Appeal), Value Added Tax;
(d) Commissioner (Large Taxpayers’ Unit), Value Added Tax;
(e) Director- General, Central Intelligence Cell;
(f) Director- General, Audit, Intelligence and Investigation Directorate, Value Added Tax;
(ff) Director General Customs, Excise and VAT Training Academy;
(fff) Director General, Duty Exemption and Drawback Office;
(g) Additional Commissioner or Additional Director- General or Director (CIC), Value Added Tax;
(h) Joint Commissioner, Joint Director (CIC) or Director, Value Added Tax;
(i) Deputy Commissioner or Deputy Director, Value Added Tax;
(j) Assistant Commissioner or Assistant Director, Value Added Tax;
(k) Revenue Officer, Value Added Tax; (l) Assistant Revenue Officer, Value Added Tax; and
(m) any other officer appointed by the Board.
Value Added Tax Authority and officers thereof : Sec 78

The Board may, by a general or special order published in the official Gazette,
appoint the VAT officers, determine their local jurisdiction and specify the responsibilities,
duties, powers and functions of such officers under this Act or any rule made thereunder.
The Board may, by a general or special order published in the official Gazette,
constitute, either for the whole or for any specific area of the country or for any specific class
of taxpayers, one or more large taxpayers' units and appoint necessary numbers of officers
thereto, and prescribe the rules of functions of such units.
To carry out the purposes of this Act, the Board may, by a general or special order
published in the official gazette, establish one or multiple Specialized Unit(s), appoint
required number of VAT officers in the Unit(s) and, determine the responsibility, work
process and allowance of the officials working in the said Unit(s).
Duties and responsibilities of the VAT Authority : Sec 79
The Board shall, under the provisions of this Act, carry out all the functions, including
the policy making functions, and discharge all the duties and exercise all the powers of the
VAT Authority.
The VAT officials shall perform, while remaining under the control, surveillance and
supervision of the Board, all or any of the functions, discharge all or any of the
responsibilities and duties, and exercise all or any of the powers described below, namely:—
(a) tax collection and activities relating to keeping accounts thereof;
(b) application of the provisions of this Act and the rules made thereunder and
administrative functions; and
(c) any other function or duties and responsibilities assigned to them by the
Board to carry out the purposes of this Act.
Assistance to VAT officers : Sec 82

Any members of the Police, Border Guards Bangladesh, Bangladesh Coast Guards,
and Ansars; and the authorities of all Union Parishads, Upazila Parishads, Municipalities,
Zila Parishads, City Corporations; and all the government officers, including the officers
administering and controlling the functions relating to Excise, Customs, Income Tax and
Narcotics; any other government officers, officers of bank, insurance, Chartered Accountant
Firm, Credit rating Agency and financial institutions shall remain obligated to render
assistance to the VAT officers in discharging their duties under this Act or any rules made
thereunder.
A VAT officer not below the rank of an Assistant Commissioner may, for the
purposes of taking assistance, request any member, authority, officer or any other person
specified in sub-section (1) to provide any information, including the accounts of any
movable or immovable property of any person, statements of bank accounts or other
documents of any person, and such member, authority, or officer, if so requested, shall
remain obligated to furnish such summoned information.
Power of the Board to amend or alter an order or decision of a VAT officer : Sec 80
The Board may, suo moto, call for, in such manner and within
such time as may be prescribed, the records of any proceeding or any order
passed or any decision taken by any VAT officer for scrutinising the
accuracy of such proceeding, order or decision, and may, after such
scrutiny, pass such reasonable order as it deems fit:
Provided that the rights or liabilities of any person determined under
this Act shall not be affected by such order.
Power of the Board to amend the order or the decision of the VAT official : Rule 59
The Board may on its own initiative can re-consider or amend any decision or
order of any VAT official within 2 (two) years of the passage of that decision or order.
To fulfill the purposes of Sub-Rule (1), the Board shall call the file of the
decision or order of the VAT official and shall pass necessary decision after review.
By any decision under Sub-Rule (2), if any person or taxpayer is harmed or
his due tax increases or the amount of negative adjustment or returnable amount is
decreased, then no decision can be taken without giving him an opportunity of
personal hearing.
Whatever may be contained in any other provisions of this Rule, the Board
cannot bring any amendment to any matter that is under appeal at Appellate
Tribunal or under writ at the High Court Division of the Supreme Court or any
subject under appeal.
Delegation of Power : Sec 81
The Board may, by a notification in the official Gazette and subject to

such limitations or conditions as may be specified in such notification,
delegate to any VAT officer, by name and designation, any responsibility, duty
or power of a Commissioner under this Act or the rules made thereunder.
Unless the Board otherwise directs, a Commissioner or a Director-
General may pass an order giving any VAT officer subordinate to him the
authority to exercise any or all of his powers in all or any part of the
jurisdiction of such Commissioner or Director- General.
Assistance to VAT officers : Sec 82

Any members of the Police, Border Guards Bangladesh, Bangladesh Coast
Guards, and Ansars; and the authorities of all Union Parishads, Upazila Parishads,
Municipalities, Zila Parishads, City Corporations; and all the government officers,
including the officers administering and controlling the functions relating to Excise,
Customs, Income Tax and Narcotics; any other government officers, officers of bank,
insurance, Chartered Accountants Firm, Credit Rating Agency and financial institutions
shall remain obligated to render assistance to the VAT officers in discharging their
duties under this Act or any rules made thereunder.
A VAT officer not below the rank of an Assistant Commissioner may, for the
purposes of taking assistance, request any member, authority, officer or any other
person specified in sub-section (1) to provide any information, including the accounts of
any movable or immovable property of any person, statements of bank accounts or other
documents of any person, and such member, authority, or officer, if so requested, shall
remain obligated to furnish such summoned information.
Power to enter and search by VAT officers : Sec 83

To carry out the purposes of this Act, a VAT officer not below the rank of an
Assistant Commissioner or Assistant Director, being authorized by the
Commissioner or the Director General, may, in the prescribed manner, exercise
the following powers, namely:
(a) to enter into any place or premises of any economic activity or into any house,
transport, etc. make search and if needed seizure and detention therein; and
(b) to inspect any economic activity and examine and seize its records, files,
documents and accounts.
If the place specified in sub-section (l) be a place of abode of any person, it
shall require such officer to serve, in the prescribed manner, a notice upon the
owner or the person-in-charge or supervisor of such place and no such entry
shall be made during the period from sunset to sunrise.
Power to enter and search by VAT officers : Sec 83

If any person contravenes any provision of this Act or any rule made
thereunder, a VAT officer of the rank of an Assistant Commissioner or
Assistant Director and above may, in the prescribed manner, instruct the
concerned bank authority to freeze the bank account of such person.
Notwithstanding anything contained in sub-section (l), an Officer not
below the rank of a Revenue Officer can inspect the place of
manufacturing or supply or place of service rendering or place of
trading and examine goods in stock, services, raw-materials and accounts
of any registered and worth of being registered person in his jurisdiction.
Power of VAT Official for entry and search : Rule 60
On approval of the VAT authorities described in section 78, on request

of an official not below the rank of an Assistant Commissioner or
Assistant Director, the Commissioner or Director General may delegate
power to the concerned officials in form “Mushak-12.l” for entry and search
of the place, premise, place of residence, transportation, etc. described in the
above section.
The official empowered under Sub-Rule (1) shall serve a notice to
the owner or responsible person or caretaker of the concerned place in
“Mushak-12.2” form.
While searching, if any document or goods or object is needed to be
seized for reasons of further investigation, then the said official shall seize
that in the procedure as described in Rule 61.
Seizure of goods and disposal thereof : Sec 84
If any person makes any supply or renders any service in violation

of any provision of this Act or any rule made thereunder, then the
Commissioner or Director General or VAT officer empowered by him may,
in prescribed manner, detain, seize and dispose of such goods,
documents or transport or the goods related to such service.
During the pendency of a proceeding, the Commissioner may, in
such manner and on such terms as may be prescribed, order for ad-
interim release of any good seized under sub-section (1) to the owner of
such good or his representative.
Seizure of records, documents, goods or transportation carrying goods : Rule 61
While entering or searching under Rule 60, auditing or investigating under

Section 90, an empowered officer can detain or seize any records, documents,
goods or vehicle carrying goods under Section 84.
While detaining or seizing under Sub-Rule (1), the owner of the vehicle
carrying goods or the responsible person or the caretaking person or the driver of
concerned place, goods, records, documents or vehicle carrying goods shall co-
operate in every possible way with the concerned official or the team.
The concerned official or team leader shall make a list of seized goods and
shall get the signatures of at least 2 (two) persons who were Present there with
the signature of the owner, responsible or caretaking Person or driver of the
concerned premises, product, records, documents or vehicle carrying goods and 1
(one) copy of it shall be delivered to the concerned person.
Seizure of records, documents, goods or transportation carrying goods : Rule 61
If the owner or responsible or caretaking person or the driver of the

concerned premises, goods, records, documents or vehicle carrying goods denies to
co-operate under Sub-Rule (2) or if under Sub-Rule (3) the Person present denies
to sign on the seizure list, then the seizure list shall be considered as valid
without the signature of person present.
Within the next 3 (three) working day of the search, and seizure of records,
documents, goods or vehicle carrying goods, primary report in form “Mushak-
12.4” and within 30 (thirty) days final report in form “Mushak-12.5” have to be
submitted to the Commissioner.
If any irregularity or tax evasion is detected through search and seizure of
records, documents, goods or vehicle carrying goods, then with the final report
mentioned in Sub-Rule (5) an irregular or tax evasion case has to be filed with
the Commissioner in “Mushak-12.6” form.
Returning the seized goods and documents : Rule 62
For the purposes of sub-section (3) of section 91 of the Act, if the

purposes for which the records and documents were seized under Rule 61
settled, then after fulfilling the following conditions, shall have to be
returned to the registered person within 7 (seven) days of such disposal viz:-
(a) Sealed signature of the registered person or his authorized
representative shall have to be obtained on the copy of every
page of seized records and documents excepting the original invoice;
(b) if needed, the registered person can obtain signature of VAT Official on the
copy of tax invoice.
The photocopies of seized records and documents mentioned in sub-
rule (l) shall be considered as valid documents of the case.
Releasing the seized goods or vehicle carrying goods : Rule 63

If the requirement for which any goods or vehicle carrying goods were
seized is not finally settled, though the seizing officer or any officer senior to
him in rank can allow interim release observing the subsequent provisions
of this Rule with approval from the Commissioner.
For the purpose of releasing the goods or vehicle carrying goods in
accordance with Sub-Rule (1), the following things require to be believable to
the concerned official, viz:–
(a) The owner or driver of the goods or vehicle carrying goods had not taken
part in the transportation of the same kind of goods before.
(b) By releasing the goods or vehicle carrying goods, the interest of justice of the
under trial case regarding that goods or vehicle carrying goods shall not be
compromised or no evidence shall be destroyed.
Releasing the seized goods or vehicle carrying goods : Rule 63
In case of releasing the goods or vehicle carrying goods as per Sub-Rule (1),
the following procedures have to be followed, viz:–
(a) The principal owner of the goods or the vehicle carrying goods has to submit an
application in “Mushak-12.7” form with all the evidence of his ownership of that
vehicle to the concerned officer for releasing that vehicle.
(b) The principal owner of the goods or vehicle carrying goods has to submit an
undertaking to the concerned official in “Mushak-12.8” form; and
(c) Notwithstanding anything contained in Clause (b), if any goods or vehicle
carrying goods of a seasonal brick-field is seized, then the interim release can be
allowed on collection of the arrear or on keeping bank guarantee of the
equivalent amount of arrear.
If there lies any case in any court regarding the goods or vehicle carrying
goods, the vehicle can be released with prior approval of the concerned court.
The power and procedure of freezing bank account : Rule 64
An officer not below the rank of Assistant Commissioner with

prior approval from the Commissioner and Debt Recovery Officer–DRO
appointed under Rule 68 can freeze the bank account of the following
persons, viz:–
(a) A person defined in Clause (74) of Section 2;
(b) A person who is registered or eligible to be registered;
(c) A person who is listed or eligible to be listed; and
(d) An associate business organization.
The Commissioner or the officer empowered by the Commissioner
under Sub-Rule (1) shall issue a warrant in “Mushak-12.9” form to the
concerned bank authority with the purpose of freezing the bank account.
The power and procedure of freezing bank account : Rule 64
On receiving the warrant issued under Sub-Rule (2), the concerned

bank authority shall freeze the bank account immediately and shall
send a compliance report to the warrant issuing officer in “Mushak-
12.10” form within three working days.
If the reason for which the bank account was frozen is settled, the
warrant issuing officer shall issue a certificate within 3 (three) working
days of the settlement in “Mushak-12.11” form to unfreeze the bank
account based on which the concerned bank authority shall unfreeze the
bank account.
If the freezing of the bank account is carried out by a Judicial
Magistrate or Metropolitan Magistrate under Section 115, then the
procedure mentioned in Criminal Procedure Code have to be followed.
Procedure for imposing penalty : Rule 65

(1) In the case of failure or irregularity or evasion of tax specified in serial No. (g), (h), (j) and (d)
of the table in sub-section (1) of section 85, in sub-rule (6) of rule 61 After receiving the report in the
said Form MUSHAK-12.6, in the case of all other tax evasions including the said areas, after completing
the tax assessment process mentioned in Section 73, with the aim of imposing penalty, the financial
mentioned in clause (b) of sub-section (1) of Section 86. The Adjudicating Officer shall issue a show
cause notice in Form MUSHAK-12.12.
(2) For any failure or irregularity other than the failure or irregularity referred to in sub-section (1) of
section 85 in respect of tax evasion—.
(a) If there has been any tax evasion, the Assessing Officer in accordance with the pecuniary capacity
referred to in clause (b) of sub-section (1) of section 86 shall complete the tax assessment proceedings
mentioned in section 73 and issue a show cause notice and In that case a penalty Minimum half and
Maximum Equal of the tax evaded and less shall be imposed;
(b) If there has been no tax evasion, any such officer not below the rank of Assistant Commissioner shall
issue a show cause notice and in that case a fine of not less than 10 (ten) thousand and not less than 1
(one) lakh shall be imposed.

(3) The following information shall remain included along with other information in the show cause notice as
described in Sub-Rule (2), viz:–
(a) The name, address and Business Identification Number (if any) of the concerned person;
(b) The type and description of the failure or the irregularity or Tax evasion;
(c) The Section or Rule or provisions made thereunder violated by the failure or irregularity;
(d) The Section or the Rule for punishment;
(e) The amount of tax evaded or avoided (if any);
(f) The last date of sending the reply to the show cause notice;
(g) Whether the concerned person is interested to have personal hearing or not;
(h) Intimation that the adjudicating order shall be given on the basis of the primary report, if the reply is not received
within the specified time;
(i) The name, title, phone, e-mail of the adjudicating officer and address for sending reply.
(4) There must be minimum 2 (two) weeks and maximum 4 (four) weeks gap between the date of issuing show
cause notice and the last date for sending reply.

If the concerned person applies for an extension of the specified time for sending the reply to the
show cause notice, the adjudicating officer can grant suitable time as per his consideration.
On the receipt of the reply to the show cause notice, if the person liable for the failure or
irregularity or tax evasion is interested to give personal hearing, the adjudicating officer after giving him
personal hearing shall issue the adjudicating order in “Mushak-12.13” form where the following
information shall remain included along with other information, viz:–
(a) The name, address and Business Identification Number (if any) of the person accused of the failure or
the irregularity or tax evasion;
(b) The type and the description of the allegation lodged;
(c) The Section or the Rule or any other provision made thereunder violated by the allegation lodged;
(d) The Section or the Rule for punishment;
(e) The amount of tax evaded or avoided (if any);
(f) The amount of penalty imposed;
(g) The reply of the show cause notice;
(h) The statement given during personal hearing (if any);

(i) The analysis or review of the allegation lodged and the reply of the accused person;
(j) The result of the analysis (whether the allegation is proved or annulled);
(k) The order;
(l) If a penalty is imposed by the order, for depositing the penalty applicable economic code,
time and the mode of payment ;
(m) If any party is aggrieved with the adjudicating order, then the venue, time and the method
of appeal; and
(n) The name, title, phone, e-mail and the address for communication with the adjudicating
officer.
If the reply is not received within the time as specified in Sub-Rule (4) or within the
extended time as specified in Sub-Rule (5), the adjudicating officer shall issue the
adjudication order on the basis of the documents obtained.
Imposition of monetary penalty for non-compliances, irregularities or tax evasion : Sec 85
The VAT Officer mentioned in section 86 may impose a monetary penalty specified in column (3)
for the non-compliances, irregularities or tax evasion specified in column (2) of the following TABLE,
namely:—
Sl. Non-compliances, irregularities or tax evasion Amount of monetary penalty
(1) (2) (3)

(a) Non-compliance or irregularity for not applying for registration or 10 (ten) thousand taka only
enlistment within the prescribed time-limit;
(b) Non-compliance or irregularity for not displaying the registration or 10 (ten) thousand taka only
turnover tax certificate in a visible place;
(c) Non-compliance or irregularity for not informing the Commissioner of 10 (ten) thousand taka only
the change in the information of the economic activity;
(d) Non-compliance or irregularity for not applying for cancellation of 10 (ten) thousand taka only
registration or enlistment within the prescribed time-limit
(e) Non-compliance or irregularity for not abiding by the provision of 10 (ten) thousand taka only
section 9(5);
(f) Non-compliance or irregularity for not filing the VAT or turnover tax 5 (five) thousand taka only
return within the prescribed time period;

Sl. Non-compliances, irregularities or tax evasion Amount of monetary penalty
(1) (2) (3)
(g) Non-compliance or irregularity for not making inclusion of the output tax in the Minimum half and Maximum Equal amount of output
return; tax not included;
(h) Irregularities for taking more input tax credit than entitlement in the return; Minimum half and Maximum Equal amount of input tax
irregularly taken;
(i) Irregularity relating to making an increase of a decreasing adjustment or making a Minimum half and Maximum Equal amount of increased
decrease of an increasing adjustment in the return; decreasing adjustment or Minimum half and Maximum Equal the
amount of decreased increasing adjustment
(j) Non-compliance or irregularity for not issuing tax invoice, credit note, debit note, 10 (ten) thousand taka only
combined tax invoice and withholding certificate;
(k) Non-compliance or irregularity for not keeping records in the prescribed manner; 10 (ten) thousand taka only
(l) Non-compliance or irregularity for not furnishing fixed security; 10 (ten) thousand taka only
(m) Irregularity for willingly evading or attempting to evade assessment and payment Minimum half and Maximum Equal amount of taxes
of taxes; evaded
(n) Failure or irregularity of non-submission of Input-Output coefficient within the 10 (ten) thousand taka only.
prescribed time;
(0) Failure or irregularity to comply with the provisions mentioned in Sections 51, 53, 1 (one) Lac only
54, 64 and 107 of the Act in respect of supply of exempted goods or services;
Despite having the obligation of the VAT withholding entity to deduct VAT at source and
deposit thereof under section 49, if the VAT withholding entity fails to deduct VAT at source and
deposit thereof,-
(a) That VAT including interest imposed in accordance with section 127 shall be realized from the
withholding entity in such manner as if he is the supplier of goods or service under the said
section;
(b) Without prejudice to the provisions set out in clause (a), for the failure to deposit the VAT
deducted at source in the government treasury within the prescribed time, the concerned
Commissioner shall be entitled to sanction a fine not exceeding 25,000 (twenty-five thousand)
taka against the concerned VAT withholding entity, the person responsible to deposit the deducted
VAT and the executive officer of the concerned entity.
Save and except any offence or any non-compliances, irregularities or tax evasion specified
in sub-section (1), if any person fails to do anything he is required to do under any of the
provisions of this Act or the rules made thereunder, or does anything he is not permitted to do,
then the VAT officer mentioned in section 86 may, considering the gravity and frequency of
commission of such act of non-compliances or irregularities, impose, in the prescribed manner
and of a prescribed amount of monetary penalty on such person.
Imposition of monetary penalty for non-compliances, irregularities or tax
evasion : Sec 85
(2a) If a person fails to pay tax due to mistake or misrepresentation or fails to pay tax
or takes refund of tax or takes excess rebate or fails to make proper abatement/increasing
adjustment and subsequently pays transfer tax with interest as per relevant section of law. ,
no penalty shall be imposed on him in such case.; And
Nothing in this Act shall prevent a VAT officer mentioned in section 86, if there are elements
of offence and of non-compliance or irregularity in any incident, from lodging a criminal case
for the element of such offence and initiating proceeding for the element of such non-
compliance or irregularity.
Every VAT officer mentioned in section 86 shall, before imposing a monetary
penalty under this section, issue a notice to give the concerned person an opportunity of
being heard excepting the case of serial no (f) of column (1) of the Table of sub-section (1).
Imposition of monetary penalty for non-compliances, irregularities or tax
evasion : Sec 85
(4a) If an establishment is temporarily closed due to lack of supplies
and fails to submit returns at the end of each tax period and reopens after a
specified period, the tax period between the temporary closure and re-opening
of the establishment or Penalty specified in serial no. (f) of column no. (1) of
the table to sub-section (1) shall not be levied for failure to submit returns of
tax periods.
The monetary penalty imposed shall be payable as additional to VAT, supplementary

duty, turnover tax, interest, or fine.
Monetary limits of the VAT officers in initiating a proceeding

for adjudication: Sec 86
To carry out the purposes of this Act or the rules made thereunder, or for the
imposition and collection of taxes,—
(a) in relation to imports and exports, the Customs Officers shall initiate proceedings in
accordance with the provisions of the Customs Act;
(b) in relation to supply of goods or services, the VAT officers shall, subject to the
monetary powers specified in the following TABLE, initiate proceedings under the
provisions of this Act, namely:—
Monetary limits of the VAT officers in initiating a proceeding for adjudication:

Sec 86
SL Officer Powers
Commissioner or Chief value of the goods or value of taxable service exceeding
a
Commissioner Tk. 40 (forty) lakh only;
value of the goods or value of taxable service not exceeding
b Additional Commissioner
Tk. 40 (forty) lakh only
c Joint Commissioner
Tk. 30 (thirty) lakh only
d Deputy Commissioner
Tk. 20 (twenty) lakh only
value of goods or value of taxable service not exceeding
e Assistant Commissioner
Tk. 10 (ten) lakh only;
value of goods or value of taxable service not exceeding
f Revenue Officer
Tk. 4 (four) lakh only:
Monetary limits of the VAT officers in initiating a proceeding

for adjudication: Sec 86
Provided that the proceedings, which do not have any financial involvement i.e.,
related to irregularity, those proceedings shall be disposed of by such an officer not below the
rank of assistant commissioner.
Explanation.- For the purpose of determination of “Value of goods or value of taxable
service’’ mentioned in the table, the value of vehicle carrying the seized goods or services
shall not be included.
Every VAT official shall, in each proceeding taken up under the provisions of this
section, provide the concerned person an opportunity of being heard through service of a
notice upon such person.
If any person in the case of this failure, irregularity or tax evasion, applies for
summary adjudication, then in that case the adjusting officer can complete adjudication
procedure in the said case without issuing show cause notice and taking hearing.
Power to summons: Sec 87
An officer of VAT, not below the rank of a Revenue Officer, may,

requiring to take any action under the provisions of this Act or the rules
made thereunder, issue summons to any person for standing as a witness or
presenting any document.
The person so summoned under sub-section (1), shall be under
compulsion to appear as per the direction of the VAT officer either in person
or through an authorised representative:
Provided that no summons shall be issued to a person, who is
exempted from appearing in person, under sections 132 and 133 of the
Code of Civil Procedure.
Powers and functions of the Customs Officers: Sec 88

Every Customs Officer, in applying, and giving effect to, any provision
of this Act or any rule made thereunder, shall have the following
responsibilities, namely—
(a) to collect VAT and Advance Tax imposed on taxable imports; and
(b) to collect supplementary duty payable on imports of goods subject to
supplementary duty.
A Customs Officer shall be entitled to exercise the powers conferred
upon him by the Customs Act in such a manner as if the provisions of
imposition of Customs duty on an importable goods under the Customs Act is
applicable to the VAT, Supplementary Duty and Advanced Tax imposed under
this Act.
Sec 89 and 89A

89. Confidentiality.—
Subject to the provisions of the Right to Information Act, 2009 (Act No. 20 of
2009), all the information, received from any taxpayer in giving effect to the
provisions of this Act, shall be treated as confidential.
89A. Application of other laws in the matter of Value Added Tax Act.—
The Government may, by notification in the official gazette, declare that any
provision of the Customs Act, 1969 or the Excises and Salt Act, 1944 (Act No. 1 of
1944) and the rules made there under, shall after necessary modifications be
applicable in the execution of this Act.
Submission of Annual Audited Financial Statements: Sec 90A
A registered limited company shall submit the audited

annual financial statements comprising income – expense
accounts of previous year’s business to the commissioner
within first six tax periods of current year.
Provided that the concerned commissioner on the basis of
application, may extend the time up to another six tax periods
considering logical reasons.
Offences relating to VAT registration certificate or turnover tax certificate and
tax invoice, and punishment thereof : Sec 111
Whoever dishonestly—
(a) makes or uses a fake VAT registration certificate, turnover tax certificate or
integrated tax invoice and withholding certificate bearing a forged or false business
identification number; or
(b) makes or uses a forged or false tax invoice, credit note, debit note, integrated tax
invoice and withholding certificate;
(c) manufacture, store, transport, marketing or uses a forged or false or reused
stamp or banderol or assist to do such activities;
(d) manufacture, storing, transport, marketing or selling of goods which uses a
forged or false or reused stamp or banderol having mandatory to use or assist to do
such activities;
Offences relating to VAT registration certificate or turnover tax certificate and tax
invoice, and punishment thereof : Sec 111
(e) manufacture, storing, transport, marketing or selling of goods without using

stamp or banderol having mandatory to use or assist to do such activities;
(f) evades payment of the payable tax otherwise; or
(g) claims a tax refund without such person being entitled to such refund,
shall be punished with imprisonment for a term which may extend to
one year, or with a fine equal to the amount of tax payable, or with both.
If any person, during making application for online registration or
enlistment, provides wrong or untrue information, then necessary measures may be
taken against that person in view of the current law.
Sec 112 and 113

112. Offence and punishment relating to false or misleading statement or
description.—
Whoever dishonestly makes a false or misleading statement or description in
any tax document submitted to any VAT officer shall be punished with
imprisonment for a term which may extend to 6 (six) months, or with a fine equal to
the amount of tax payable, or with both.
113. Offence and punishment for obstructions.—
Whoever, with a mala fide intention, obstructs or attempts to obstruct
any VAT officer in discharging his duties under this Act or any rule made there
under shall be punished with imprisonment for a term which may extend to 6 (six)
months, or with a fine which may be not less than 10 (ten) thousand taka and not
more than 2 (two) lakh taka, or with both.
Investigation, trial and appeal of the offence : Sec 114
Notwithstanding anything contained in the Code of Criminal Procedure or in any

other law for the time being in force, the offences shall be triable by a First-Class Judicial
Magistrate or Metropolitan Magistrate empowered under the Code of Criminal Procedure
and may impose any amount of fine prescribed in this Act.
The offences shall be bail able and non-cognizable.
No such Judicial Magistrate or Metropolitan Magistrate shall take cognizance of an
offence except through a complaint, in writing, made, subject to the approval of the
Commissioner, by an officer of VAT not below the rank of an Assistant Commissioner.
The VAT officer shall, in such manner and within such time as may be prescribed,
complete the investigation of any offence punishable under this Act.
Such Judicial or Metropolitan Magistrate shall try the offences following the summary
trial procedure laid down in the Code of Criminal Procedure, and the appeal, review and
revision in respect of such offences shall be filed and disposed off in accordance with the
provisions laid down in the Code of Criminal Procedure.
Sec 114 and 116

115. Additional Power of the Judicial Magistrate or the Metropolitan Magistrate.—
For the purposes of this Act, the Judicial Magistrate or the Metropolitan Magistrate
shall also have the power to freeze the bank accounts of a person committing the offence.
116. Offence committed by any company, association of persons or property
development joint venture.—
If an offence is committed by any company or association of persons or property
development joint venture, every director, partner, chief executive, manager, secretary,
official, employee, representative or VAT Agent thereof having involvement with such offence
shall be deemed to have committed such offence unless he proves that such offence was
committed without his knowledge or he tried his best to prevent the commission of such
offence.
A company may be tried and punished in the same judicial proceeding which is lodged
against such director, partner, chief executive, manager, secretary, official, employee,
representative or VAT Agent of such company, but no imprisonment other than fine shall
be imposable upon such company.
Sec 117 and 120

117. Abettor of offence.—
Whoever abets or gives support or incites or excites a person in the commission of any offence,
shall be deemed to have been an offender as a committer of such offence, and shall be punished
similarly as such committer is punished.
118. Prior approval before filing a case.—
Without the prior approval of the Commissioner, no case in respect of any offence shall be filed
in any court.
119. Compoundability of the offences.—
The offences shall, in the prescribed manner, be compoundable.
Every case before or after the prior approval of the Commissioner for filing thereof, is
comprisable in such manner and on such terms as may be prescribed by the Board, but after filing such
case, permission of the court shall be required to make such compromise.
120. Fine additional to the tax payable.—
The fine imposed as punishment by a Judicial Magistrate or a Metropolitan Magistrate shall be
in addition to VAT, supplementary tax, turnover tax or monetary penalty.
Investigation procedure of offense : Rule 96
The VAT official who has lodged the case, shall submit the investigation report
to the court through Commissioner after completing the investigation process within
four months after accepting the case by the court:
Provided that, if the investigating officer applies for extension, then the court
may extend the above time limit for another 3 (three) months.
If within the time limit referred in Sub-Rule (1) and within the extended time if
applicable, the investigation is not completed and the report is not submitted to the
court, then it shall be considered that the allegations lodged in the case have not
been proved.
The investigating officer shall inform the accused person about the allegations
in “Mushak-16.1” form and may request to provide confessional statement within
15 (fifteen) days of the receipt of notice regarding the allegation.
Investigation procedure of offense : Rule 96
The accused person shall reply to the investigating officer within the
specified time in “Mushak-16.2” form.
The investigating officer shall review the received information and
submit a report to the Commissioner within the specified time referred in
Sub-Section (1).
Reasonable opportunity of hearing has to be given to the accused
person during investigation.
In case the accused person denies providing confessional statement

under Sub-Rule (4), if the allegation of the accused person is proved
following final disposal of the case, then his name and necessary information
shall be published in the offenders’ list under the law.
Procedure for compoundment of offense: Rule 97
The Board may compound any offense, if the accused person–
(a) Applies in writing to the Board for compoundment of any case;
(b) Pledges by undertaking to pay the tax in installments decided by the
Commissioner related to the complaint; and
(c) Promises to the effect that, he will bear the administrative costs that
will incur to do the compoundment.
Notwithstanding anything contained in Sub-Rule (1), if the accused
person has committed the same type of offense in the past, then the Board
shall not able to do any compoundment.
For doing the compoundment, the Board shall provide opportunity of
hearing to the applicant and concerned Commissioner and the officer lodging
the complaint.
AUDIT AND INVESTIGATION
90. Audit and investigation of a taxpayer’s economic activities.—
(1) The Commissioner or the Director- General may, to prevent tax evasion, conduct, under the
provisions of this Act or the rules made thereunder, audit and investigation into all affairs of a taxpayer’s
economic activities.
(2) The Board shall, in order to conduct such audit and investigation activities, frame rules and
compile and publish an Audit Manual.
(3) An Officer of VAT, duly empowered by the Commissioner or the Director- General, shall,
after conducting the audit and the investigation in accordance with the procedure laid down in the Audit
Manual, submit an audit report to the Commissioner or the Director-General.
(4) If, in the audit report referred to under sub-section (3), any tax liability for the audited tax
period of any taxpayer is identified, the Commissioner or the Director- General shall fix the tax liability,
and shall, after determining the interest payable on such unpaid tax, refer the matter to the concerned
officer for initiating next proceedings for the collection of such unpaid tax.
(5) Notwithstanding anything contained in section 73, in case of 100% export oriented
industries, the Commissioner cannot demand any arrear tax for any tax period, more than 3 (three)
years before of the concerned tax period for realization of arrear tax.
90A. Submission of Annual Audited Financial Statements:

A registered limited company shall submit the audited annual financial
statements comprising income – expense accounts of previous year’s business
to the commissioner within first six tax periods of current year.
Provided that the concerned commissioner on the basis of application, may

extend the time up to another six tax periods considering logical reasons.

91. Powers of the VAT officers.—
(1) An Officer of VAT, not below the status of Assistant Commissioner or Assistant Director
duly authorized in this respect form Commissioner or Director Generel, for authorized
purposes, may, through service of a notice, ask for the following information from any
person, namely:—
(a) necessary information relating to any person for conducting the audit and the investigation; or
(b) any document or evidence under the custody of any person.
(2) Such an authorised VAT officer shall have the following powers, namely:—
(a) to make copies of any record;
(b) to seize any record in the prescribed manner;
(c) to seal any record or good; and
(d) to take steps, in the prescribed cases and manner, to freeze bank accounts of any
person.

91. Powers of the VAT officers.—
(3) In relation to the seizure of any record, document or a goods by any, above empowered VAT
Officer, those shall be returned, under such procedure as may be prescribed, to such person
from whom they were seized.
(4) [deleted by finance act 2019]
(5) No entry shall be made or search conducted, under any provision of this Chapter, into any
premises of a diplomatic, consular or other mission of a foreign country or international
organisation which enjoys immunity from such entry or search under international law.
Explanation: In this section, “authorised purpose” means—

(a) collection of information for fixing the tax liability of any person;
(b) collection of information for collecting tax from any person;
(c) identification of tax evasion; or
(d) ensuring compliance with the provisions of this Act.

92. Supervised supply, observation and surveillance.—
(1) Where a taxpayer does not comply with the provisions of this Act with an intention
of evading payment of tax, an Officer of VAT may, under orders from the Commissioner
observe, and keep surveillance on, any supervised supply, in a prescribed manner, at any
place relating to his economic activities subject to tax to determine the actual tax liability of
such taxpayer.
(2) Such officer of VAT shall, specifying all information necessary to determine the tax
liability of such taxpayer, submit a report to the Commissioner.
(3) The Commissioner may, after giving the taxpayer an opportunity of being heard,
determine the actual tax liability of such taxpayer on the basis of the report submitted under
sub-section (2) and any other information gathered under this Act or the rules made
thereunder.

Rule- 66. Supervised supply, observation and surveillance.
(1) The Commissioner or Director General by an order can form one or more than one team with
one or more than one officials or employees with the purpose of supervised supply, observation and
surveillance on the basis of risk management.
(2) The Commissioner or Director General shall specify in the order the place of supervision of
supply, time and duration.
(3) Prior to the commencement of the supervision, the supply supervising team shall visit the
place of supply and shall submit a report to the Commissioner or Director General in “Mushak-13.1”
form.
(4) The supply supervising team shall perform all activities related to VAT including issuance of
supply invoice staying full time of the specified duration at the place mentioned in the order and shall
submit to the Commissioner or Director General a daily report in “Mushak-13.2” form within the next
day of the daily activity and a final report in “Mushak-13.3” form at the end of the supply supervision.

93. Multiple departmental audits.—
No registered or enlisted person shall be included for audit twice for the same tax
period unless the Commissioner has reliable information or other genuine cause to
believe that such person has, submitting wrong or false information or fake
documents, fraudulently evaded tax in relation to such audited tax period.
94. Special audit. —
(1) The Board may, subject to such limitations and such terms as may be prescribed,
appoint an auditor to hold any audit, including a special audit, of records and
accounts of any registered or enlisted person.
(2) The auditor so appointed under sub-section (1) shall, for the purpose of this
section, be treated to be an officer of VAT.
Rule-66A. Audit of tax related activities of the tax-payer.-
An officer not below the rank of Joint Commissioner or Joint

Director can select any registered or worth of being registered person
for audit and inspection of the related activities, for the purpose of
determining appropriateness of the tax payable under this Act.

Rule-67. Appointment of auditor for performing special audit.
(1) The Board may appoint auditor following the subsequent provisions of this Rule.
(2) In case of appointment of auditor, the provisions of Public Procurement Act, 2006 and Public
Procurement Rules, 2008 made thereunder have to be followed.
(3) Along with other information, the matters cited below have to remain specifically mentioned in the
tender document for appointment of auditor, viz:–
(a) Number of organizations selected for audit;
(b) Duration of audit;
(c) Terms of reference of auditor;
(d) Guidelines applicable for audit;
(e) Standards to be followed during audit;
(f) Time of submission of audit report; and
(g) Offences and penalties.
(4) The following activities of the appointed auditor shall be considered as punishable offense, viz:–
(a) Not performing properly the responsibilities given;
(b) Doing any work detrimental to government revenue;
(c) Submission of report filled with untrue information;
(d) Failure to furnish information as per requirements of the Board;
(e) Not follow the guidelines during audit;
(f) Not follow the standard specified for audit;
(g) To evade tax or to help others to do that;
(h) Furnish false and confusing information during submission of tender;
(i) Disinterest in commencement of activity after appointment or stopping assumed activity or start activity
partially;
(j) Failure to submit report within specified time; and
• (k) Violation of any provision under the Act or Rules or violation of any condition given in the tender
document.
(5) If any offense as listed under Sub-Rule (4) is committed by the appointed auditor and for the offense
if–
(a) tax evasion is caused, then–
(i) the auditor shall be penalized by having to pay minimum double the amount of evaded tax;
(ii)his agreement shall be terminated; and
(iii) he shall be blacklisted for 5 (five) years for first time offense and for whole of life if he repeats
the same.
(b) if no tax evasion is caused, then–
(i) the auditor shall be penalized by a minimum amount of 3 (three) lakh Taka;
(ii)his contract shall be terminated; and
(iii) he shall be blacklisted for 5 (five) years for first time offense and for the whole life if he repeats
the same.
(5) If any offense as listed under Sub-Rule (4) is committed by the appointed auditor and for the offense if–
(a) tax evasion is caused, then–
(i) the auditor shall be penalized by having to pay minimum double the amount of evaded tax;
(ii) his agreement shall be terminated; and
(iii) he shall be blacklisted for 5 (five) years for first time offense and for whole of life if he repeats the same.
(b) if no tax evasion is caused, then–
(i) the auditor shall be penalized by a minimum amount of 3 (three) lakh Taka;
(ii) his contract shall be terminated; and
(iii) he shall be blacklisted for 5 (five) years for first time offense and for the whole life if he repeats the same.
(6) In case of imposition of penalty as per Sub-Rule (5), the provisions of Rule 65 have to be followed for show cause
notice and personal hearing.
(7) The provisions of Sub-Rule (5) shall be additional to the related provisions of the Public Procurement Act, 2006
and the Public Procurement Rules, 2008 made thereunder.
THANK YOU

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VAT Training Day 7

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Online Training session on

Value Added Tax (VAT) and It’s Practical Aspects Organized by :

For CA Students (1st Batch) Dhaka Regional Committee (DRC)

Rtn. Md. Anwaruzzaman FCA

VAT Agent and VAT Consultant (NBR Licensed)

Partner at Rahman Mostafa Alam & Co., Chartered Accountants

Consultant & Trainer at enroute.com.bd

Faculty Teacher and Member at Bangladesh VAT Professional Forum (BVPF)

Faculty Teacher at The Institute of Chartered Accountants of Bangladesh (ICAB)

Past Chairman, Dhaka Regional Committee (DRC) - ICAB

Fellow Member of The Institute of Chartered Accountants of Bangladesh (ICAB)

Fellow Member of The Institute of Internal Auditors Bangladesh (IIAB)

Topics SL Particulars Reference

2(28) "tax determination" means a determination

Tax determination: Sec 73

Tax determination: Sec 73

Method of tax determination : Rule 57A

Admissibility of tax determination notice : Sec 77

Grant of tax benefit or its negation: Sec 76

Value Added Tax Authority and officers thereof : Sec 78

Value Added Tax Authority and officers thereof : Sec 78

Assistance to VAT officers : Sec 82

Delegation of Power : Sec 81

The Board may, by a notification in the official Gazette and subject to

Assistance to VAT officers : Sec 82

Power to enter and search by VAT officers : Sec 83

Power to enter and search by VAT officers : Sec 83

Power of VAT Official for entry and search : Rule 60

On approval of the VAT authorities described in section 78, on request

Seizure of goods and disposal thereof : Sec 84

If any person makes any supply or renders any service in violation

Seizure of records, documents, goods or transportation carrying goods : Rule 61

While entering or searching under Rule 60, auditing or investigating under

Seizure of records, documents, goods or transportation carrying goods : Rule 61

If the owner or responsible or caretaking person or the driver of the

Returning the seized goods and documents : Rule 62

For the purposes of sub-section (3) of section 91 of the Act, if the

Releasing the seized goods or vehicle carrying goods : Rule 63

The power and procedure of freezing bank account : Rule 64

An officer not below the rank of Assistant Commissioner with

The power and procedure of freezing bank account : Rule 64

On receiving the warrant issued under Sub-Rule (2), the concerned

Procedure for imposing penalty : Rule 65

Procedure for imposing penalty : Rule 65

(d) The Section or the Rule for punishment;

(e) The amount of tax evaded or avoided (if any);

Procedure for imposing penalty : Rule 65

Procedure for imposing penalty : Rule 65

(1) (2) (3)

Imposition of monetary penalty for non-compliances, irregularities or tax evasion : Sec 85

The monetary penalty imposed shall be payable as additional to VAT, supplementary

Monetary limits of the VAT officers in initiating a proceeding

Monetary limits of the VAT officers in initiating a proceeding for adjudication:

Monetary limits of the VAT officers in initiating a proceeding

Power to summons: Sec 87

An officer of VAT, not below the rank of a Revenue Officer, may,

Powers and functions of the Customs Officers: Sec 88

Sec 89 and 89A

Submission of Annual Audited Financial Statements: Sec 90A

A registered limited company shall submit the audited

(e) manufacture, storing, transport, marketing or selling of goods without using

Sec 112 and 113

Investigation, trial and appeal of the offence : Sec 114