The document outlines a training session on corporate tax management led by Masum Gazi, detailing his extensive experience in taxation and compliance in Bangladesh. It covers topics like TDS compliance, tax liabilities, income tax return submissions, and various tax sections relevant to businesses operating in the country. Key illustrative examples and compliance requirements are provided to ensure understanding of tax obligations.

1. Training on Corporate Tax
Management
Presented by : Masum Gazi
E-mail: masumgazi613@gmail.com
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2. Trainer’s Profile
Masum Gazi
E-mail: masumgazi613@gmail.com
LinkedIn:
https://www.linkedin.com/in/taxprofessionalbd/
• Working as a deputy manager of taxation in a leading accounting firm in Bangladesh.
• More than 7 years of comprehensive experience in accounting, auditing, direct and indirect taxes,
tax advisory, tax structuring, tax compliance and due diligence, income tax assessment, tax litigations,
and international taxation.
• National Board of Revenue (NBR) certified tax practitioner.
• Member of the Dhaka Taxes Bar Association.

3. Topics to be covered
• TDS compliance under a practical perspective
• Other tax compliances & Penalties
• Advance income tax and related compliances
• Preparation of different statements & return under sections 58, 75, 75A,
108,108A
• Computation of total taxable income & tax liability and preparation of company
tax return
• Income tax return submission & assessment.
• Appeal, Tribunal & High Court etc.
• VDS Compliance under practical perspective.
• Preparation of different books of accounts & monthly VAT return.
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4. Any questions before we begin?
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5. Income Tax
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6. 1st Class Topics
▪ TDS compliance under practical perspective:
✓ Requirement for TDS/TCS
✓ Major TDS/TCS sections with a practical example
✓ Details on sections 50 & 52
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7. TDS/TCS
Tax Deducted at Source is income tax collected by withholding entity on behalf of the
government at the time of making payment to suppliers/service providers.
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8. ▪ A company/Bank or Non-Banking Financial Institution/Insurance company/Government
Authority/ Branch office/Liaison office/Partnership Firm etc. are the main withholding
entity. Other withholding entities are mentioned in the respective sections.
▪ The sole proprietor has not any responsibility to deduct tax at source except u/s 50.
Tax deducting/collecting authority
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9. Why tax is required to be deducted/collected at
source by a withholding entities
If tax is not deducted at source-
• Expense shall not be admissible u/s 30 in respect of which tax thereon has
not been deducted at sources
• The amount of disallowances made under section 30 shall be treated
separately as “Income from business or profession” and the tax shall be
payable thereon at the regular rate. [Section-30B]
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10. TAX
Why tax is required to be
deducted/collected at source by
withholding entities?
• For acquiring any asset and tax has not been
deducted therefrom, such payment shall be
deemed to be the income under the head “Income
from other source [ section-19 (32)]
• Failure to deduct tax at source, shall be paid with
such amount that was required to deduct
including interest @ 2% per month [Section 57
(2)]
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11. Major TDS/TCS Sections:
• Deduction at source from Salaries (U/S-50)
• Deduction from payment to contractors, etc. (U/S-52)
• Deduction from payment of royalties etc. (U/S-52A)
• Deduction from the payment of certain services (U/S-52AA)
• Collection of tax from clearing and forwarding agents (U/S-52AAA)
• Deduction at source from interest on saving instruments (U/S-52D)
• Deduction from payment to a beneficiary of workers’ participation fund (U/S-52DD)
• Collection of tax from travel agent (U/S-52JJ)
• Collection of tax from freight forward agency commission(U/S-52M)
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12. Major TDS/TCS Sections:
• Deduction of tax for services from convention hall, conference centre, etc (U/S-52P)
• Deduction of Tax from any income remitted from abroad in connection with any service,
revenue sharing, etc. (U/S-52Q)
• Deduction from payment on account of local letter of credit (U/S-52U)
• Collection of tax on account of import of goods (U/S-53)
• Deduction at source from house property (U/S-53A)
• Deduction of tax from export proceeds of goods (U/S-53BB)
• Deduction or collection at source from commission, discount or fees etc. (U/S-53E)
• Deduction of tax from commission or remuneration paid to agent of foreign buyer(U/S-53EE)
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13. Major TDS/TCS Sections:
• Deduction at source from interest on saving deposits and fixed deposits. (U/S-53F)
• Deduction at source from insurance commission (U/S-53G)
• Collection of tax on transfer, etc. of property (U/S-53H)
• Collection of tax from lease of property(U/S-53HH)
• Deduction at source from interest on deposit of Post Office Savings Bank Account (U/S-53I)
• Deduction at source from rental value of vacant land or plant or machinery (U/S-53J)
• Deduction of tax from advertising bill of newspaper or magazine private television or private
radio station, etc. (U/S-53K)
• Deduction of tax from any sum paid by real estate developer to land owner (U/S-53P)
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14. Major TDS/TCS Sections:
• Deduction of tax from dividends (U/S-54)
• Deduction from income from lottery, etc. (U/S-55)
• Deduction from the income of non-residents (U/S-56)
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15. TDS on Salaries u/s 50
• In case of resident tax to be deducted at source at an average rate.
• In the case of non-resident foreigners tax shall be deducted @ 30% on total taxable income
Common queries regarding salary TDS:
❖How TDS will be calculated when an employee joins the middle of an FY?
❖How is tax to be deducted if employees leave the organization in the middle of the FY?
❖When employees work with more than one employer in an FY how is tax to be deducted?
❖Can you adjust last year’s tax refund with the current year’s tax deduction?
❖Can you adjust advance car tax with the current year’s tax deduction?
❖Will you admit a 20% investment allowance whether the employee actually invested or not?
❖If excess or lower amount of tax is deducted what will be the measure?
❖What will be the conversion rate if the salary is paid in foreign currency?
❖Whether tax to be deducted from Provident Fund or Gratuity Payment at the time of
retirement/resignation?
❖How is tax to be deducted from directors’ remuneration?
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16. TDS on Salaries u/s 50
What
❖What will be the monthly tax deduction from Mr A’s salary payment?
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17. TDS on Salaries u/s 50
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18. TDS on Salaries u/s 50
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19. TDS on Salaries u/s 50
Rule 9 of ITR 1984
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20. Deduction from
payment to contractors u/s 52
Payment to a resident on account of –
a. Execution of contract (except service contract)
b. Supply of goods;
c. Manufacture, process or conversion;
d. Printing, packaging or binding
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21. The rate of deduction u/s 52 & rule 16 of the ITR, 1984
Where base
amount exceeds
taka 50 lakh but
does not exceed
taka 2 core
Where base
amount does not
exceed taka 50
lakh
3
%
5
%
7
%
Where base
amount exceeds
taka 2 crore
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22. The rate of deduction u/s 52 & rule 16 of the ITR, 1984
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23. The rate of deduction u/s 52 & rule 16 of the ITR, 1984
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24. The rate of deduction u/s 52 & rule 16 of the ITR, 1984
Where the payee or the income of the payee, which is subject to tax at source under section 52, is
exempted from tax or is subject to a reduced tax rate in an income year, the Board may, on an application
made by the payee in this behalf, give a certificate in writing that the payment referred to section 52 for
that income year shall be made without any deduction or with deduction at a proportionately reduced
rate, as the case may be.
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25. The rate of deduction u/s 52 & rule 16 of the ITR, 1984
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26. Deduction from payment to contractors u/s 52: Illustration-1
ABC Ltd. purchases raw materials from Company XYZ Ltd. The following transactions took place
during the year:
01-Jul ABC Ltd. Buy raw materials costing 40 Lacs from XYZ Ltd.
10-Sep ABC Ltd. Buy raw materials costing 1.2 Core from XYZ Ltd.
10-Dec ABC Ltd. Buy raw materials costing 70 Lacs from XYZ Ltd.
Date Amount Cumulative amount TDS%
Cumulative Tax
amount
Single
transaction tax
amount
01-Jul 4,000,0004,000,000 3% 120,000 120,000
10-Sep 12,000,000 16,000,000 5% 800,000 680,000
10-Dec 7,000,00023,000,000 7% 1,710,000 930,000
23,000,000
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27. Deduction from payment to contractors u/s 52: Illustration-2
▪ the rate of tax shall be fifty percent (50%) higher if the payee fails to submit proof of submission of
return at the time of making the payment.
Mr Karim, a listed regular supplier of ABC Limited, supplies different stationery & office
equipment items against different work orders. But at the time of making payment, he fails to
provide proof of submission of return. The following transactions were incurred during the FY:
01-Jul ABC Ltd. Buy raw materials costing 40 Lacs from XYZ Ltd.
10-Sep ABC Ltd. Buy raw materials costing 1.2 Core from XYZ Ltd.
Date Amount Cumulative amount TDS %
Cumulative Tax
amount
Single
transaction tax
amount
01-Jul 4,000,000 4,000,000 4.5% 180,000 180,000
10-Sep 12,000,000 16,000,000 7.5% 12,00,000 10,20,000
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28. Deduction from payment to contractors u/s 52: Illustration-3
▪ the rate of tax shall be fifty percent (50%) higher if the payee does not receive payment by bank
transfer
Mr Karim, a listed regular supplier of ABC Limited, supplies different stationery & office
equipment items against different work orders. At the time of making the payment, Mr Karim
asked to pay the bill in cash. The following transactions were incurred during the FY:
01-Jul ABC Ltd. Buy raw materials costing 40 Lacs from XYZ Ltd.
10-Sep ABC Ltd. Buy raw materials costing 1.2 Core from XYZ Ltd.
Date Amount Cumulative amount TDS %
Cumulative Tax
amount
Single
transaction tax
amount
01-Jul 4,000,000 4,000,000 4.5% 180,000 180,000
10-Sep 12,000,000 16,000,000 7.5% 12,00,000 10,20,000
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29. Deduction from payment to contractors u/s 52
where any imported goods on which tax has been paid at source under section 53 is supplied, tax at
source on the said supply shall be B-A, where-
A= the amount of tax paid under section 53,
B= the amount of tax applicable under this section if no tax were paid under
section 53.
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30. Deduction from payment to contractors u/s 52: Illustration-4
where any imported goods on which tax has been paid at source under section 53 is supplied, tax at
source on the said supply shall be B-A, where-
A= the amount of tax paid under section 53,
B= the amount of tax applicable under this section if no tax were paid under
section 53.
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31. Deduction from payment to contractors u/s 52
where any imported goods on which tax has been paid at source under section 53 is supplied, tax at
source on the said supply shall be B-A, where-
A= the amount of tax paid under section 53,
B= the amount of tax applicable under this section if no tax were paid under
section 53.
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32. Deduction from payment to contractors u/s 52
where any goods on which tax has been paid at source under section 53E is supplied, tax at source on the
said supply shall be B-A, where-
A = the amount of tax paid under section 53E,
B = the amount of tax applicable under this section if no tax were paid under section 53E:]
[Provided that in case of the goods supplied by any distributor or any other person under a contract as
referred in sub-section (3) of section 53E, the term “B” as mentioned in paragraph (d) shall be computed
as follows:
B= {the selling price of the company to the distributor or the other person as referred in section 53E (3)}
x 7% x 5%.
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33. Deduction from payment to contractors u/s 52: Illustration-5
where any goods on which tax has been paid at source under section 53E is supplied, tax at source on the
said supply shall be B-A, where-
A = the amount of tax paid under section 53E,
B = the amount of tax applicable under this section if no tax were paid under
section 53E:]
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34. Exemption from TDS for Oil purchased from petrol [ump
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35. Deduction from payment to contractors u/s 52: Test your understanding
❖ During FY 22-23, ABC company purchases books from Liton Publication for Tk. 60,00,000. What
amount of tax is to be deducted by ABC at the time of making such payment?
❖ ABC Limited is a manufacturing company that purchases industrial raw materials from XYZ
Limited for its production for Tk. 40,00,000 in a FY. What amount of tax is to be deducted by ABC
at the time of making such payment?
❖ PQR Limited is a trading company that purchases trading goods from XYZ Limited (a trader) for
Tk. 40,00,000 in a FY. What amount of tax is to be deducted by PQR at the time of making such
payment?
❖ What will be the TDS rate for the purchase of software and customization services?
❖ Whether TDS has to be deducted on advance payment made to the seller?
❖ If the seller does not agree to deduct tax from its payment what purchaser can do to avoid
disallowance u/s 30?
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