BSRM evades tax of Taka 110 crore
Allegations against the capital market enlisted BSRM steels limited have arisen of evading tax of Taka 110 core. The company has done the mischief by selling their products inside the country but they showed it as export, as alleged by National Board of Revenue (NBR).
This has been unearthed in an investigation of Chattogram Commissionerate of NBR. NBR, Chattogram branch has already sent a letter to this debt ridden organization to deposit the evaded money to government exchequer. Though the company took the cognizance of the letter but has gone to higher court for the contents of the letter.
In the reports of NBR, it has been told that the company under the definition of ‘exportable goods’ the BSRM from 2014 to 2018 have evaded the tax and VAT by not depositing to government exchequer. They have evaded Taka 110 crore 56 lakh 48 thousand 715. The NBR after examining their documents and registers have found out this tax evasion information.
In 2016, from June to December the company took the facility of duty exemption of Taka 3.56 crore and VAT exemption of Taka 14 lakh against supplying 2500 tons of goods. In 2017 in two phases the company has evaded tax of more than Taka 12 crore against supplying 10 thousand tons of goods. In 2018 from January to November the company took tax exemption of Taka 91 crore and VAT of Taka 44 lakh.
In total the company kept the amount of Taka 106 duty tax and Taka 4 crore as VAT unpaid showing their goods under ‘exportable definition.’
When the BSRM authority was contacted about the allegation of tax evasion by NBR, the DMD of BSRM Topon Sen Gupta told bartatwentyfour.com that, ‘BSRM never evaded tax. We did not evade tax. We will prove it in the higher court that the claim of NBR is faulty.’
He further said that for the last 25 years BSRM has been supplying their goods in foreign financing project as a result the duty exemption matter has come up. NBR claims are not acceptable. Recently NBR has given an explanation in favor of their demand which is conflicting with the existing law.
Customs, Excise and Vat commissioner of Chattogram Mohammad Enamul Haque maintaining a different opinion told bartatwentyfour .com that to get tax exemption under ‘exportable definition’ there are some processes which were not observed by the company. Theses are mandatory to get exemption, he said.
The commissioner further said that the project is being implemented in foreign currency support by a Chinese company. The BSRM is not listed in the contractors’ list. They did not get payment through Bangladesh Bank.
However, there is scope of tax exemption in a project being implemented within the country by foreign financing. But the material supplying company’s name must be listed in the original tender notice. BSRM took the tax exemption from such type of projects but they are not listed as main contractor there.
The work order was given to a foreign company. BSRM supplied their goods in that project. So they are not entitled to get the exemption of NBR. So the NBR has asked them to refund the exempted money.