Value added tax

Value Added Tax (VAT)
---Part one

VAT is an indirect tax which is charged on the increase in value
of goods and services at each stage of production and
distribution with provision of set-off of tax paid on earlier
stage.
There are various VAT rate all over the world. It depends on
the economic systems of any country.
Value Added Tax (VAT)
3105 :: Principles & Practices of Taxation - I VAT

 VAT is an indirect tax applied on goods and services both
VAT is levied on only value addition
 Ultimately borne by the consumers of goods and services
 Consumption tax
 VAT is levied on the value of goods and services at each stage of
production until it reaches the final consumers
 Have option for tax credit
Characteristics of VAT

 Effective and efficient tool for resources mobilization
Zero rate is applicable in VAT systems
 VAT is imposed at Import stage, Production Stage, Wholesale
and Retail stage
Have option for exemption of goods (Schedule-1) and Services
(Schedule-2)
Ultimate consumer can neither shift nor adjust the VAT
General VAT rate is flat which is 15%
Characteristics of VAT

 Encourage personal savings and investment as it is a consumption tax
 Broader VAT net and has more revenue potential
 Eliminate cascading effects of taxes (tax on tax)
 VAT systems acts as deterrent to avoid/evade tax for having input tax
rebate
 It helps in cross checking among the parties
 VAT system is supported by documents which is easy to audit
 More equitable and transparent
Advantages of VAT

 It is one kind of regressive tax
(the poor pay more in comparison than the rich)
 VAT strengthens inflation
 Heavy burden on the labour intensive firm compared to the capital
intensive competitors
 VAT encourages cash transactions to avoid VAT
 Valuation on the basis of Retail price
 Mark up fixed by Govt for specific trading
Disadvantages of VAT Bangladesh Perspective

 One of the major sources of public revenue
 It provides for greater simplicity, transparency and authenticity in the
current tax system
 Increase the competiveness of local industry by eliminating the cascading
effect of tax
 Mobilizing the resources through encouraging savings and investment
 Encourage to pay tax through tax credit systems
 Helps to avoid tax evasion and under valuation
Rationale Behind Implementing VAT in BD

 Value Added Tax Act, 1991: Came into force on 1st July 1991; Has 73
sections and Three Schedules
 Value Added Tax Act, 2012 (To be effective from 2015)
 Value Added Tax Rules, 1991: Empowered by section 72 of the VAT Act
1991
 Finance Act
 SRO (Statutory Regulatory Orders): Empowered by section 21 of the VAT
Act 1991
 VAT Case Law
VAT Related Laws in Bangladesh

Value Added Tax Act, 1991 is comprised of three areas of taxation:
1. VAT : 15 percent VAT is applicable for all business or industrial units
with an annual turnover of Taka 2 million and above
2. Supplementary Duty : It is imposed at local and import stage under the
VAT Act, 1991. Existing statutory SD rates are as follows:
(a) On goods: 20%, 35%, 65%, 100%, 250% & 350%
(b) On services: 10%, 15% & 35%.
Coverage of VAT Act

Value Added Tax Act, 1991 is comprised of three areas of taxation:
3. Turnover tax: Turnover tax at the rate of 4 percent is leviable where
annual turnover is less than Taka 2 million.
Coverage of VAT Act

1. Chargeable
2. Exempted
3. Zero Rated
Categories of Goods & Services under VAT Act

Some features of VAT
Tax Base for VAT:
Import Stage
Customs Assessable Value + Customs duty +
Supplementary Duty
Domestic/Local Stage:
a) Goods (manufacturing): [Production cost + Profit
and Commission (if any) + Supplementary duty (if any)]
b) Services: [total receipts excluding VAT but
including supplementary duty (if any)]

Truncated Base / Fixed Value Addition:
Difficulties in availing VAT
Fixed bases such as 10%, 25%, 30%, and 60% value
addition is taken into account for calculation of VAT for a
number of goods and services. In such circumstances net
VAT rate for different rates of value addition comes to
1.5%, 2.25%, 4.5% and 9%.

VAT at the wholesale and retail stage:
In case of wholesalers and retailers, there is a special
provision for a 1.5% percent VAT known as Trade VAT on
the total sale, provided that the wholesaler/retailer do
not avail the facility of input credit/adjustment. Such tax
is also collected at the import stage from importers of
finished goods as an advance trade VAT.

Tariff Value for imposition of VAT:
Under the VAT Law, the government is empowered to fix
Tariff Value for some items for the collection of VAT.
Example: tariff value for mild-steel products produced is
TK 4000.00. Normal VAT input credit is also not available
under this system.

Deduction of VAT at source:
As deduction at source is also practiced in case of VAT
on certain services, Government, Semi-Government,
Autonomous Bodies, NGOs, Banks, Insurance Companies
and Limited Companies are authorized by the
government to deduct applicable VAT on the services at
source.

3 alternatives of VAT Computation:
1. The Addition Method: T (Wages + Interest + Profit)
2. The Subtraction Method: T (Output- Input)
3. The Tax Credit Method: T(Output) - T(Input)
Final Result must be equal.
Value Addition Measurement

VAT Calculation Procedure
Stage RM/
Input
CC Profit Value
Added
Output/
Selling
Price
Input
VAT
Output
VAT
Net VAT
Payable
1. Importer
(Import RM)
800 - - 800 800 - 120 120
2. Importer
(Sale of RM to the
Producer)
800 100 100 200 1000 120 150 30
3. Producer 1000 800 200 1000 2000 150 300 150
4. Wholesaler 2000 150 50 200 2200 300 330 30
5. Retailer 2200 50 50 100 2300 330 345 15
6. Consumer 2300 - - - - 345 N/A -
Total 1100 400 2300 2300 345

Definitions U/S 2:
‘Input' means –
(i) except labor, land, building, office equipment and transport,
all raw materials (any gas and any material used as fuels),
packaging materials, service, machinery and spare parts;
(ii) in the case of trading, goods imported, purchased, acquired or
otherwise procured in any way for sale, exchange or transfer in
any other manner;
Statutory Definitions

Definitions U/S 2:
‘Tax period' means a period of one month or such period as the
government by notification in the official Gazette, fix in this
behalf;
‘Input tax' means value added tax paid on inputs imported by
registered person or purchased by him from any other
registered person;
‘Output tax' means value added tax imposed under this Act

Definitions U/S 2:
‘Account current' means an account maintained with the
Commissioner by a registered person in a specified form in
which details of purchases, sales, treasury deposits, payable and
creditable value added tax and, where applicable, other taxes shall
be entered;
‘Turn over' means all money received or receivable by any person
from supply of taxable goods produced or manufactured by
him or rendering of taxable service for a particular period;

Definitions U/S 2:
‘Documents' means anything expressed or stated with the help of a
letter, number, symbol or sign on paper or on any other material
and shall include any kind of electronic data, computer program,
computer tape, computer disk or any kind of media that holds
any data;
‘Return’ means a return required to be submitted under section 35
of this Act;
‘Specified date' means, in the case of submission of a return, the
10th day of the month following the tax period;

Definitions U/S 2:
‘Goods' means all kinds of movable property, excluding shares,
stocks, coins, securities and recoverable claims;
‘Commercial importer’ means a person who imports goods, other
than those specified in the First Schedule, and sells or transfers
in anyway without changing its shape, features, characteristics
or quality to any other person in exchange of consideration;

Definitions U/S 2:
‘Producer' or ‘Manufacturer' shall include any person engaged in
any of the following activities, namely:-
(i) transforming or reshaping any matter by processing exclusively
or by changing, transforming or reshaping such matter in
combination with any other matter, material or component of
production into a different specific matter or goods so that the
said matter becomes useable differently or specifically;

Definitions U/S 2:
(ii) any incidental or complimentary process to complete the
manufacture of goods;
(iii) printing, publication, lithography or enameling process;
(iv) adding, mixing, cutting, liquefying, bottling, packaging, or
repackaging;

Definitions U/S 2:
(v) Distribution of assets of any insolvent manufacturer or producer
by an official receiver, liquidator, executor or supervisor engaged
as a trustee;
(vi) manufacturing or producing for monetary consideration any
goods in his own plant, machinery or equipment using raw
material or input owned by any other person.

Definitions U/S 2:
‘Commercial documents’ means book of accounts, files,
documents or papers maintained by a person to record his
commercial transaction showing financial condition of his
business, namely :- debit voucher, credit voucher, cash memo,
daily purchase and sale accounts, cash book, primary or journal
book, bank account and accounts or documents related thereto,
trial balance, ledger, financial statement and analyses, profit and
loss account, profit and loss appropriation account, bank account
reconciliation and balance sheet and all related documents
including audit report;

Definitions U/S 2:
‘Trader’ means a person who sells or otherwise transfers to any
other person in exchange of consideration any goods imported,
purchased or otherwise acquired by him without changing its
shape, feature, characteristics or quality;

Definitions U/S 2:
"zero-rated taxable goods or services" means goods or services
exported or deemed to have been exported or any food or any
material described in sub section (2) of section 3 on which value added
tax or, where applicable, supplementary duty shall not be imposed
and all other taxes and duties (excluding advance income tax and
supplementary duty paid on such inputs, used for manufacturing
producing export such goods as may be specified in this behalf by the
Government by notification in the official Gazette) shall be refunded;

Definitions U/S 2:
‘Supply' means sale, transfer, lease or disposal in any manner, for a
consideration, of goods manufactured or produced by a manufacturer or
producer or of goods imported, purchased, acquired or otherwise
procured by a trader.

U/S 16:
a) in relation to taxable import: the importer
b) in relation to any taxable supply in Bangladesh: the
supplier
c) in relation to any taxable supply of imported service: the
recipient; or
d) in relation to any sale of any goods by an auctioneer on
behalf of a registered person in the prescribed manner: the
auctioneer.
Persons liable to pay value added tax

U/S 28:
Determination of value of taxable imports.—The value of a
taxable import shall be the summation of the following
amounts‚ namely-
(a) the value of the goods determined for the collection of
customs duty under the Customs Act; and
(b) the amounts, if any, of customs duty, supplementary duty,
or other tax (other than VAT and advance income tax)
payable on the import of the goods.
Determination of Value for VAT charge

U/S 32
Determination of value of the taxable supply:
(1) Subject to this section the value of a taxable supply that is
made in Bangladesh is the consideration for the supply,
reduced by an amount equal to the tax fraction of that
consideration.
(2) The value of a taxable supply of an imported service shall
be the consideration of such supply or if the supplier and
recipient are related persons, then the fair market price
thereof shall be the value of such supply.
Determination of Value for VAT charge

(3) Save and except any matter determined under sub-
section (7) the value of a taxable supply a registered
person makes to an associate is the fair market value of
the supply, reduced by the tax fraction of that value, if—
(a) the supply is made for no consideration, or for a
consideration that is lower than the fair market value;
and
(b) the associate would not be entitled to a credit for all of
the input tax incurred on the acquisition of the thing
supplied.

(4) Unless otherwise specified, the value of a supply for no
consideration shall be zero.
(5) The value of a supply that is not a taxable supply is the
consideration for the supply.
(6) The value of a taxable supply of a sale of residential
premises shall be determined in the prescribed manner.
(7) The value of taxable supply of immoveable property by
a partner of a property development joint venture to a
landowner thereof shall be determined in the prescribed
manner.

Payment and adjustment of advance
tax
U/S 31
(1) Every person registered or required to be registered or
enlisted person who makes a taxable import through his
economic activities shall make payment of the VAT or
turnover tax on the supply of such commercially
imported goods in advance at the rate specified in sub-
section (2).
(2) An advance tax‚ at the rate of 3 (three) percent of the
value of the taxable import‚ shall be payable at the same
time, and in the same manner as VAT is payable on a
taxable import.

(3) Every registered or enlisted importer who has made a
payment of advance tax may‚ in the prescribed manner‚
claim‚ in the return of the related tax period‚ a
decreasing adjustment equal to the amount paid as
advance tax.
(4) Any person who has paid an advance tax but is neither
registered nor enlisted may‚ in the prescribed manner‚
make an application to the Commissioner for a refund of
such advance tax.

Time of payment of VAT on taxable
supplies.
U/S: 33
(1) The VAT imposed on a taxable supply shall become
payable on the earliest occurrence of any of the
following events‚ namely—
(a) when such supply is made;
(b) when a tax invoice for such supply is issued; or
(c) when any part or full of the consideration for such
supply is received.

(2) Where a progressive or periodic supply is treated as a
series of separate supplies, any VAT imposed on each
such supply becomes payable on the earliest of—
(a) if separate invoices are issued for each such supply, the
day on which the applicable invoice is issued;
(b) the day on which any part of the payment
corresponding to the supply is received;
(c) the day on which the payment corresponding to the
supply is due; or
(d) if the amount payable is certain at that time, the first
day of the period to which the progressive or periodic
payment relates.

(3) Notwithstanding the provision of sub-section (2)‚ if a
progressive or periodic supply of any goods (such as:
water, gas, oil, electricity, or thermal energy) or services is
made through a distribution network‚ the VAT shall
become payable within 90 (ninety) days after the day on
which the invoice for such each supply is issued.

Manner of assessing net payable tax on
supplies, and payment thereof
U/S 45
(1) The net payable tax, for any tax period, shall be
assessed by a taxpayer in the following manner,
namely—
(a) all of the output taxes and supplementary duty payable
in such tax period shall be added together;
(b) all of the input tax credits entitled to claim in such tax
period shall be subtracted from the amount assessed
under clause (a); and
(c) all of the increasing adjustments required to be made in
such tax period by the taxpayer shall be added to; and

Manner of assessing net payable tax on
supplies, and payment thereof
(d) all of the decreasing adjustments allowed to be made
in such tax period by the taxpayer shall be subtracted to.
(2) The net payable tax assessed under sub-section (1)
shall, in the prescribed manner, be paid by the taxpayer
before filing the return for such tax period.

Input Tax Credit
U/S 46:
(1) Except as provided otherwise, a registered person is
entitled to an input tax credit for the VAT imposed on a
taxable supply or import if, —
(a) the supply was made to, or the import was made by,
the person in the course of the person’s economic
activity; and for the purpose of taxable supplies made, or
to be made by, the person; and
(b) in the case of a supply: the person paid, or is liable to
pay, the consideration for the supply.
(2) No input tax credit shall, in the following cases, be
claimed, namely-

Input Tax Credit
(2) No input tax credit shall, in the following cases, be
claimed, namely-
(a) if the value of any taxable supply exceeds Taka 1,00,000
(one lakh); and
(b) if full or part of the consideration against any supply is
paid by cash other than a banking channel.

(3) No credit is allowed for input tax incurred on an
acquisition or import if,
(a) the acquisition or import is of a passenger vehicle, or of
spare parts or repair and maintenance services for a
passenger vehicle
(b) the acquisition or import is of entertainment or is used
to provide entertainment
(c) the acquisition is of a membership or right of entry for
any person in a club, association, or society of a
sporting, social, or recreational nature; or
(d) the acquisition is of transport services, other than when
acquired to supply transport
(e) (e) the acquisition is of dutiable goods that are subject
to a special scheme

(4) At the time of filing return by a registered person, the
following documents are required to be submitted in
support of an input tax credit claimed, namely-
(a) in the case of import: a bill of entry
(b) in the case of a supply: a tax invoice issued by the
supplier
(c) in case of a withholding entity: a combined tax invoice
and withholding certificate issued by the supplier.

(5) The recipient of supply of any imported service shall
not be entitled to claim an input tax credit against such
supply unless he includes in the return the output tax
imposed on the supply of such imported service.
(6) Every claim of an input tax credit by a registered person
shall be made either in the tax period in which VAT
becomes payable or in any one of the two succeeding
tax periods, and such claim of input tax credit thereafter
shall be time-barred.

Imposition of Supplementary Duty
U/S 55
(1) Supplementary duty shall be imposable and payable on
the import of supplementary dutiable goods‚ on the
supply of supplementary dutiable goods manufactured
in Bangladesh and on the supply of supplementary
dutiable services made in Bangladesh.
(2) Notwithstanding anything contained in sub-section (1)‚
no supplementary duty shall be imposed on an import
of a dutiable goods if the goods are imported for export
but not for home-consumption.

(3) Notwithstanding anything contained in sub-section (1)‚
no supplementary duty shall be imposable on a supply
of supplementary dutiable goods or services that are
zero rated.
(4) The amount of supplementary duty payable shall be‚—
(a) if a rate of supplementary duty is specified for the
dutiable goods or services in the second schedule: the
amount arrived at by multiplying the dutiable value of
the goods or services by such rate; or
(b) if a specific amount of supplementary duty is specified
for the dutiable goods or services in the column (4) of
the second schedule: such amount.
(5) Supplementary duty on the supply of supplementary
dutiable goods or services is imposable at only one
stage.

Imposition and collection of turnover tax
U/S 63
(1) Every person enlisted or required to be enlisted shall
pay turnover tax at the rate of 3 (three) percent on the
turnover of his economic activities. Provided that the
amount of the advance tax paid shall be adjusted by
such person with the amount of turnover tax.
(2) The turnover tax payable in a tax period by any enlisted
person shall be paid before filing the return.
(3) Manners in respect of assessment and collection of the
payable turnover tax, of keeping accounts, of claiming
refund or adjudication thereof, and other ancillary
matters shall be determined by rules.

Turnover tax (Rule-4)
Any producer or manufacturer or trader of taxable goods
or provider of taxable services, who is not required to be
registered, shall pay turnover tax at the rate of four percent
of his annual turnover.
U/S 10: If a person, on carrying on an economic activity
after quarter of any 12 (twelve) month time, exceeds the
enlistment threshold, but does not exceed the registration
threshold, then such person shall make, within 30 (thirty)
days from the ending date of such quarter an application
to the Commissioner for the enlistment as a turnover
taxpayer.
51

When and how Registration for Turnover
Tax is Done
If Turnover of any trader of goods or provider of taxable
services less than Tk. 20 lakh, he will apply to the
superintendent of VAT circle office in the form Mushak–6
for registration for the purpose of Turnover Tax.
If the superintendent is satisfied, he will issue a certificate
of registration within seven days of application.
If once registered, no renewal of registration is required. No
fee is payable for registration for the purpose of Turnover
Tax.
52

When and how Registration for Turnover
Tax is Done
If after registration, the turnover of registered person
exceeds Tk. 20 lakh during a continuous period 12 months,
he will apply within 30 days after end of the 12 months for
registration for the purpose of VAT to VAT Divisional Officer.
However, contractors, C & F agents, suppliers, lessor, rent-
a-car, service provider, Board meeting participants, land
seller, letter of credit service provider, shall not be allowed
for registration for turnover tax though their annual
turnover falls below Tk. 20 lakh.
53

When and How Turnover Tax is Paid
The turnover tax shall be payable, monthly, quarterly or
yearly, as specified by the registered person in his
application @ 4% of the turnover during the month,
quarter or year, as the case may be
The turnover tax is payable in advance in the case of yearly
payment, within 30 days of the date of declaration; and
in other cases; in the case of first payment, within 30 days
of the date of declaration based on declared turnover; and
in the case of subsequent payments, within 15 days of each
month or quarter, as the case may be.
54

In the case of subsequent payments of turnover tax, the
Paid Treasury Challan along with Turnover Tax Return
Form Mushak-4 shall be submitted to the Superintendent
of the VAT Circle Office within 15 days of the end of each
month or quarter, as the case may be.
55

If any tax payer of turnover tax fails to pay tax on due date,
the Superintendent of the VAT Circle Office may impose on
that tax payer fine up to Tk 5,000; and additional tax @
2% per month for the delayed or non-payment period.
No input tax is allowed as credit to the tax payer of
turnover tax. No person can also claim credit for payment
of turnover tax through invoices against his turnover tax or
VAT.
56

Books and Documents Required to be
Maintained for Turnover Tax Purposes
1 Daily Purchases and Sales Register in Form Mushak-17A;
2 Cash Memos in serial order;
3 Paid Treasury Challan;
4 Turnover Tax Return in Form Mushak-4; and
5 Declaration of Turnover in Form Mushak-28B.
These books and documents shall be maintained for at least
4 years.
57

Penalty for False Declaration for Turnover Tax
If a tax payer makes false declaration for turnover tax by
understating his turnover, he may be penalized to the
extent of at least the tax evaded and at best 2.5 times of
the tax evaded; and also required to pay unpaid tax.
58

Cancellation of enlistment
U/S 11:
(1) Every enlisted person may make to the Commissioner
an application for the cancellation of an enlistment for
the following reasons‚ namely—
(a) if he ceases to carry on any economic activity; or
(b) if the turnover of his economic activity remains below
the enlistment threshold proportionately for three
consecutive tax period.

Differences between VAT and Turnover Tax
Subject VAT Turnover Tax
1) Application for
registration
1) Application to be made to
the authority not below the
Assistant Commissioner
1) Application to be
made to the
Superintendent
2) Tax rate
2) Taxpayer pays VAT @15%
on the value added which
may be full or part invoice
thereof, as the case may be.
2) Taxpayer pays
turnover tax @4% on
the full invoice value.
3) Credit of Input
Tax
3) Tax payer can take credit
of input tax paid by him
3) Turnover tax payer
cannot take credit of
input tax paid by him
4) Credit of VAT
paid by purchaser
4) The purchaser can take
credit of VAT paid by him
4) The purchaser cannot
take credit of VAT paid
by him
60

Differences between VAT and Turnover Tax
Subject VAT Turnover Tax
5) Tax payment
5) Tax payer pays VAT before
each delivery of goods or
rendering of services
5) The tax payer pays
turnover tax monthly,
quarterly, yearly as the
case may be.
6) Maintenance of
books and
documents
6) The tax payer maintains
purchase register, sales
register, current account and
invoices
6) The turnover tax
payer maintains daily
purchase and sales
register
7. Return
7) The tax payer submits
Return in Form Mushak-19
monthly
within 10 days of the end of
the month
7) The tax payer submits
Return in Form Mushak-
4 monthly or quarterly
within 15 days of the
end of the month or
quarter, as the case may61

VAT Registration
U/S 6:
(1) Every person required to be registered shall make an
application to the Commissioner for VAT registration.
The following documents shall be submitted along with
the application form:-
(a) Trade License;
(b) TIN Certificate (if any);
(c) IRC/ERC Certificate(if any);
(d) List of all related Selling Centers in the case of “central
registration”;

(e) Declaration in Form Mushak-7 of the production or
business premises, plant, machinery, fittings, finished or
tradable goods, stocks, and inputs.
(2) The Commissioner shall, after registering such person
issue a VAT registration certificate inserting a business
identification number therein.
(3) If the application under sub-section (1) is not made
accordingly, the Commissioner shall inform the matter to
the applicant in writing.

VAT Registration
U/S 7:
The Board shall prepare a list of the registered persons
from time to time, and print, circulate and preserve such
list from time to time.

VAT Registration
U/S 9: Cancellation of VAT registration
(1) If a registered person refrains from carrying on his
economic activity‚ then he shall make, within such time,
on such terms and in such manner as may be
prescribed, an application to the Commissioner for the
cancellation of VAT registration thereof:
Provided that the VAT registration shall not be cancelled
until the tax due is paid in full.

VAT Documents to be maintained
U/S 51: Tax Invoice
Every registered person shall, at the date when the taxable
supply is made, issue a serially numbered tax invoice
containing the following information, namely-
(a) the date and time on which it is issued;
(b) the name, address and business identification number
of the supplier;
(c) the name, address and business identification number
of the buyer if the value of the supply is more than 25
000.00 (twenty five thousand);

U/S 51: Tax Invoice
(d) the description, quantity of goods supplied and‚ actual
time and date of supply;
(e) the value of the supply (exclusive of VAT);
(f) the VAT rate applicable to the supply;
(g) the amount of VAT payable;
(h) the summation of the price of supply and VAT payable;
and
(i) any other information prescribed by the Board.

U/S 52. Credit notes and debit notes.
(1) Every credit or debit note shall include the following
information, namely—
(a) the serial number, time and date on which it is issued;
(b) the name, address and business identification number
of the supplier;
(c) the time and date and serial number of the original tax
invoice;
(d) the nature of the adjustment;

U/S 52. Credit notes and debit notes.
(e) the effect on the amount of VAT; and
(f) the name, address and business identification number
of the recipient of the supply if the amount of VAT
payable on the supply is more than 5000.00 (five
thousand); and
(g) any other information necessary to identify the amount
of any increasing or decreasing adjustments because of
the adjustment event.

U/S 53: Combined tax invoice and withholding
certificate.—
(1) A registered person, other than a withholding entity,
who makes a supply to a withholding entity shall, on or
before the date of making such supply, issue to the
withholding entity a combined tax invoice containing
the prescribed information, and a withholding
certificate for such supply. U/S 52. Credit notes and
debit notes.

Submission of Return
A manufacturer or producer or trader of taxable goods
or renderer of taxable service shall submit a return to the
concerned officer in the form and in the manner
prescribed by rules for every tax period, showing therein
all of his tax liabilities under this Act.

Rule-24:
Every manufacturer or producer or businessman of
taxable goods or renderer of taxable service shall have to
deposit in the local value added tax office two copies of
a return in Form "Musak-19" for each tax period within
10 (ten) working days of the month next after the tax
period:
Provided that in the case of an Insurance company, for
each tax period two copies of the return shall have to be
submitted to the local value added tax office within 20
(twenty) working days of the month next after the tax
period.

Rule-24:
A person who, after purchasing or manufacturing or
producing goods, supplies or exports it shall have to
append to his return the following documents, namely:-
the original copy of account current register (where
applicable);
the bill of entry or Mushak-11 relating to purchase of
inputs or raw material during the concerned tax period
or any other document relating to purchase during that
period; and
any other document demanded by the Commissioner.

Rule-24:
A person who renders or supplies taxable service shall
have to furnish with the return the following documents,
namely:-
the original and second copy of the treasury Challan
(where applicable) as an evidence of payment of the
payable tax;
bill of entry relating to the inputs or raw material
purchased or Musak-11 or any other document relating
to purchase during the relevant period; and
any other document demanded by the Commissioner.

Value added tax

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