According to the Value Added Tax and Supplementary Duty Act, VAT returns are mandatory within the next 15 days of the prescribed month
The National Board of Revenue (NBR) has extended time till June 9 to file VAT returns for March and April without penalty and interest.
According to the Value Added Tax and Supplementary Duty Act, VAT returns are mandatory within the next 15 days of the prescribed month. However, due to the extended general holidays and lockdown for coronavirus pandemic, the NBR has given this special facility for two months.
The order was issued on Tuesday by amending the law from the VAT section of the NBR.
Earlier in last week, President Mohammad Abdul Hamid issued an ordinance empowering the NBR regarding the amendment.
According to the NBR directive, the amendment to the law with the approval of the President has given the opportunity to file VAT returns without interest and penalty even after the time allotted for emergencies like natural calamities or epidemics.
Traders could not file their March and April VAT returns on time due to public holidays. In this case, they have the opportunity to submit their return by June 9. If anyone submits a return within this period, the prescribed fine of Tk 10,000 and interest at the rate of 2 percent has been waived.
On the other hand, according to the current May VAT return law, it has been directed to submit it by June 15.
Earlier on Wednesday (May 20), the President gave this power to the NBR by amending Section 64 of the VAT Act. The law, with the permission of the NBR and the government, has created an opportunity to extend the deadline for filing submissions by waiving interest and fines for emergencies.
According to NBR sources, 42,600 VAT returns (April) have been filed across the country for the month of April till May 15. 31,400 were submitted in March. But the new law has registered 1.5 lakh organizations online. On an average, more than 1 lakh companies submit VAT returns every month.