NBR finds Tk 174cr VAT dodge by WASAStaff Correspondent
Dhaka WASA on Monday appealed to the National Board of Revenue to provide exemption from paying around Tk 174 crore, which, according to the NBR, the water supply utility had evaded paying as value-added tax over the last few years.
In a letter to NBR chairman Nasiruddin Ahmed, Dhaka Water Supply and Sanitation Authority, sought the exemption denying the allegation of VAT evasion.
‘On behalf of the WASA, around 200 branches of banks in Dhaka collect revenue and VAT from consumers against services and deposit to the government exchequer,’ it said.
So Dhaka WASA appealed to NBR to withdraw its order to pay the amount and consider the matter as settled, taking into account the utility being a life saving services provider to the citizens and regular VAT payers, the letter, signed by WASA managing director Taksim A Khan, said.
Earlier in May, the revenue board had asked Dhaka WASA to pay Tk 173.60 crore saying that the organisation dodged such amount as VAT.
Dhaka WASA had collected the amount as VAT from the clients from 2007 to 2011, but did not deposit the amount to the NBR, officials said.
Large taxpayers unit of NBR detected this irregularity and asked them to immediately pay the money, they said, adding that they were yet to pay the amount.
However, Dhaka WASA claimed that the tax administration demanded the money illogically as it has been paying VAT regularly.
‘Large taxpayers unit of the NBR demanded Tk 173.60 crore against billed amount which is not logical at all,’ the letter said.
In the fiscal years 2007-08 and 2008-09, the government water utility agency had paid around Tk 100 crore as VAT against collected revenue, it claimed.
During the period, WASA collected Tk 650 crore as revenue against Tk 717 crore billed amount from the clients, it added.
NBR officials, however, said that there was no chance of providing exemption of evaded taxes.
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