5. FINDINGS AND COMMENTS

1. The VAT rate is 15% only for those goods, imported in Bangladesh.

2. There is no VAT on such goods which are sold without packaging. In this case we can take example of Agora dept. store. When we purchase vegetable from market there is no tax but when we purchase the same thing from Agora, it deducts tax at source.

3. There is no VAT on exported goods or services.

4. The National Board of Revenue (NBR) is the central authority for collecting VAT.

5. Any person wishing to start a business is liable for registration. He must give a declaration along with the application for registration detailing the place where taxable goods are manufactured, with a description of the main material used. Only one registration will be enough for the supply of more than one class of taxable goods or services for import or export business if organized in the same place.

6. The Board charged supplementary duty on some luxurious goods, which are not essential and socially undesirable. But only for encouraging the ‘Tourism Business’ government has given permission to some Bonded Warehouse to sale those luxurious goods only to the tourists at a low VAT rate. But some Ware Houses are illegally using this advantage. They are importing those goods in the name of tourists but selling these things in the local market with a high price. For this reason government is losing a huge amount of VAT.

7. The VAT authorized officer calculates the vat from the amount mentioned in the invoices of the assesse. Some fraud businessman does not write invoice properly or sales goods without giving invoice to the customers to avoid vat. In such cases government is losing a huge amount of revenue. In other cases when assesse sales goods in credit and mentions it on the invoice and pays VAT based on that invoice, but sometime some credit amount is not recovered in the future. In such case the assesse faces a great trouble to get back the excess amount of money that he paid as vat.  H/she has to prove the claim to the officer, which is very time consuming.  In such a case government should give some interest to assesse on that amount of money.

8. The government provides the Turn over Tax benefits to encourage some small business mainly the handicraft businesses whose yearly sale not more than 15 lac taka. But some fraud business man uses this advantage by showing low turn over and avoids a huge amount of VAT. In such a case if government become strict and restrict the advantages, then other real handicraft business will be hampered and fall in a big problem.

9. VAT is not charged on taxable supplies made by a business which is not, and is not required to be, registered for VAT. These include loans of money, insurance, certain types of education and training and some property transactions.

10. If some products damaged or destroyed due to accident then the registered person will get tax rebate if he applied within 24 hrs to the VAT office.

11. If any registered person authorized any person directly or indirectly on behalf of him. Then the responsibility for the activity of the representative will be attributing to that registered person.

12. All the documents related to the VAT of any company have to preserve at least six years. Otherwise the company will be penalized.

13. In Bangladesh there is no training institution for VAT officers. For the lack of proper training government lose a hand sum amount of VAT each year. To get rid of it government should establish a training institution for VAT officers, which will help government in recovering of VAT properly.

6. PATHS FORWARDS TO FUTURE RESEARCH

In this project our duty was to summarize the VAT law and highlight the important facts, which we have done with great concentration. The final part of this report was to mention some important facts, which will help the future generation while doing research on this topic. The bonded ware house is the most important facts in this regard. The owners of bonded warehouses are making profit illegally. But the government is unable to find the proper way to restrict them from doing these wrong things. Because of time limitation it was not possible for us to analyze with these things. Probably this suggestion will help the future generation in doing the research process. Another important fact is turnover tax rate. It should be only for small handicraft business. But now-a-days the big handicraft industry like Arong is taking the advantage of turnover tax. Government should restrict them from doing so. Again the future generation will find out the process how to restrict them from this type of illegal business.

7. CONCLUSION

In this report we have discussed about the different criteria of Value Added Tax. Our main job was to summarize the Value Added Tax Law, 1991 and find out different important factors that exist in the law. The time was very short for doing this project properly. So we face some problem while doing this assignment. But we have tried hard to complete this assignment successfully. On the other hand the language of these laws is not suitable for us. So that sometime we became confused in doing the summarization. From the over view we can say that VAT is one of the most important sources of Government income. So as a careful citizen we should pay the vat properly. Still there are some persons who try to avoid vat. In this regard the government should alert in collecting the VAT.