–Impress Telefilm, a leading TV production house in Bangladesh, did not deduct tax at source during 2006-07 fiscal, leading to loss of Tk 61.19 million for the government, a CAG report has revealed.
The comptroller and auditor general's (CAG) office, after screening the documents at the Large Taxpayers' Unit of National Board of Revenue (NBR) for 2006-07, found that the company did not properly deduct tax at source during that financial year.
The CAG has recommended the tax office to recover the money.
The report noted that as per VAT Act, 1991, after receiving service clients must deduct tax at source and submit the money to the exchequer, no matter how the products are purchased.
"(But) in this case the company did not deduct tax at source properly and submit it to the exchequer," the report said.
The report detailed that in 2006-07 fiscal the company enjoyed services such as motorcar workshop, printing, consultancy, security, and repair and maintenance but did not deduct tax at source.
'PENDING WITH NBR'
Finance director of Impress Zahiruddin Mahmud Mamun told that the issue is pending with the appellate court of the NBR.
He said it is not practical to collect VAT from all service providers. "They are saying I did not deduct VAT for repairing cars at workshop. But how can I collect VAT chalaan from the workshop?" he asked.
"VAT is applicable when a person buys a pack of cigarette from retail store but no one pays the Value Added Tax," he said. "I want to pay tax – as a matter of fact, my company pays Tk 8 million to Tk 10 million tax per month -- but there must be a taxpayer-friendly system in place," he added.
Impress Telefilm is engaged in a wide range of activities, including production of drama and drama serials, music videos, variety shows, magazine programme, musical programme, documentaries and TV commercials.
The comptroller and auditor general's (CAG) office, after screening the documents at the Large Taxpayers' Unit of National Board of Revenue (NBR) for 2006-07, found that the company did not properly deduct tax at source during that financial year.
The CAG has recommended the tax office to recover the money.
The report noted that as per VAT Act, 1991, after receiving service clients must deduct tax at source and submit the money to the exchequer, no matter how the products are purchased.
"(But) in this case the company did not deduct tax at source properly and submit it to the exchequer," the report said.
The report detailed that in 2006-07 fiscal the company enjoyed services such as motorcar workshop, printing, consultancy, security, and repair and maintenance but did not deduct tax at source.
'PENDING WITH NBR'
Finance director of Impress Zahiruddin Mahmud Mamun told that the issue is pending with the appellate court of the NBR.
He said it is not practical to collect VAT from all service providers. "They are saying I did not deduct VAT for repairing cars at workshop. But how can I collect VAT chalaan from the workshop?" he asked.
"VAT is applicable when a person buys a pack of cigarette from retail store but no one pays the Value Added Tax," he said. "I want to pay tax – as a matter of fact, my company pays Tk 8 million to Tk 10 million tax per month -- but there must be a taxpayer-friendly system in place," he added.
Impress Telefilm is engaged in a wide range of activities, including production of drama and drama serials, music videos, variety shows, magazine programme, musical programme, documentaries and TV commercials.
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