VAT, Tax and Customs Matters
VAT, Tax and Customs related legal support is high in demand in Bangladesh. Particularly for companies, new investors & entrepreneurs knowing the different formalities involving taxation is a big challenge because of its complexity, in particular with income tax, different statutory requirements for eg. advanced tax income, deduction of tax at source, tax exemptions, tax rebate, procedures for filing annual tax returns along with its assessments etc and their correlation which may be found difficult without proper knowledge. On the other hand, entirely new regulations are applicable to VAT. Understanding advanced ATV (advanced trade VAT), VAT rebate input at different stages of trade, obligations of consumers, supplier, service provider and different MUSAK filing along with the filing of monthly returns is equally complex.
Finally, rules and regulations applicable for various Custom duties, supplementary duties, regulatory duties and its relations with HS code and product valuation is a complex area of law which requires sound knowledge to deal with the issue efficiently. In case of any disputes, legal support is often required for challenging any claim, issues, Order before the Higher Authority or Tribunal which may even go upto the High Court & Appellate Division. We have an efficient team of lawyers comprising of our Supreme Court Team, Consultancy Team, experienced and fully equipped to accommodate our clients at all stages.
Mr. Rahman with Nobel Laureate Prof. Muhammad Yunus, Chairman of Grameen Danone Foods Ltd at its office. Chambers have long standing practice of nearly 7 years assisting clients in taxation matters.
“the ‘very responsible, responsive and knowledgeable’ Mohammed Forrukh Rahman heads the firm…”
–Legal 500, 2018
Chambers have long standing practice of nearly 7 years assisting clients in taxation matters. Mr. Rahman begun his journey by advising Grameen Danone Foods Ltd in 2008. Since then the firm not only advised clients on specific taxation issues but also conducted due diligence report before setting up business and also regularly advises clients on day to day issues. Mr. Rahman is a consultant of VAT Center of Stock Bangladesh Ltd. He also have specialized training on VAT. The Chambers comprises of other lawyers who have also had practical experience of dealing with taxation matters and customs issues. Mr. Rahman along with Tribunals team appear before several forum on taxation matters.
Our successful assignments are:
Vat appeal before comissioner completed successfully on issue of peice declaration i. e. MUSAK 1 Grameen Danone.
Vat claim successfully challenged resolved before ADR at the appellate tribunal stage on issue of destruction of raw materials.
Customs exemption refusal successfully resolved for BPDB.
VAT claim successfully resolved for Crown Melamine Industries Ltd.
Successfully advised NEPC 3 on customs matter on conversation of temporary import into permanent.
Due diligence for customs, VAT, tax calculation for a leading Japanese company over import of cranes.
Assisted in tax assessment and filing of several companies and individuals.
“Their response times are excellent and they make you feel generally very well informed…”
– Chambers & Partners, 2018
Customs disputes are common in relation to pre-shipment inspection, HS code, imposition of several duties and rates, release and confiscation of cargo, customs exemption and withdrawal etc. Disputes may be resolved at any stage if the authority is satisfied and ready to go into legal and factual details
The most common corporate taxation disputes relates to allowance or disallowance of expenditure, acceptability of debit vouchers and evidence, AIT and related expenses, imposition of estimated profit, rejection of trading accounts etc.
VAT disputes are common in relation to uses, wastage and destruction of raw materials, price declaration, revision of price declaration etc. We have successfully revolved disputes for Grameen Danone in a number of VAT matters at different levels of appeal and ADR process.
In Vat, Tax and Customs matters different appellate and other forums are avialable for resolving disputes. The same are mentioned below:
We prepare application to be filed before Commissioner Against demand and assessment Based on the VAT Act related Divisions of High court and Appellate Division. Raising all issues before Commissioner is important for placing a successful argument in later forums.
If the Commissioner refuses to accept our legal and factual position, we prefer appeal to the Commission Appeal. Unless their is any jurisdictional issue involved and/or the law itself is challenged, exhausting forum as per requirement of law is important.
Appellate Tribunals comprises with Chairman and members who are ranked equivalent to High Court Division. An appeal can be filed from the decision of the Commissioner Appeal to Tribunal. We assist our client for the entire process.
The High court writ jurisdiction can be entertained against the decision of Appellate Tribunal as a last resort on procedural grounds. our success rate before High court on VAT matters is very high. Generally interference by High court is found fruitful as Hon’ble High Court is prepared to go into details and takes lengthy submissions from both parties.
On the otherhand, the High court Tax Reference jurisdiction is unlike VAT and Customs is a permanent jurisdiction whereas per Tax Ordinance reference case can be filed. High Court can be entertain if a legal issue is involved against the decision of Appellate Tribunals. Our success rate before High court on Income tax matters is very high.
Similarly over customs issues High court by way of writ exercises it’s power where tribunals acted beyond its limit and where statute have not provided any remedy.
The recent amendment in VAT, Tax and Customs Act allowed the parties to take the matter before Facilitators. The facilitators are generally professional retired Govt. Officials, lawyers, chartered Accountants who are expert in the respective matters. Who plays the role akin to mediators analyzing factual and legal position of parties and help the parties to resolve the dispute amicably. The Chamber has very high rate of success before ADRs.
Due Diligence and Consultancy
We have advised a leading Japanese company and few other prospective investors over tax, vat and customs due diligence on different to be imported products. We also regularly advise individuals over complicated tax calculations and Disputes. New investors and newly set up business regularly take our assistance over their day to day vat obligation and duty to deduct source tax. Major construction companies take advised over customs duty calculation over different goods and equipment.
Our Related Clients
- Grameen Danone Foods Ltd
- VVD, India
- Rehmania International Pvt. Ltd
- Gaps Bangla Ltd.
- Bangladesh Equipment and Mineral Company Ltd
- NEPC 1 & 3, China
- Sojitz Machineries Corporation, Japan
- Several investors and individuals clients