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NBR detects Tk 17m VAT evasion by two firms

Officials of Dhaka West Zone have detected evasion of Value Added Tax (VAT) worth Tk 17.2 million by two companies after conducting audit.

The VAT teams discovered the evasion after auditing the documents concerning the Sanji Stainless Steel Industries Ltd and the Protik Ceramic Ltd.

In a statement, the zone said the two audit teams have examined relevant documents on the basis of specific allegations.

The audit teams submitted their report on Monday to the commissioner.

The report said that the Sanji imported their raw materials for the production of steel pipes through Chittagong Custom House (CCH) but did not keep the records in the relevant register.

This way, the steel maker concealed the information of its actual production.

The team also found that the company refrained from deducting VAT at source on some of its own expenditures. The team found the irregularities through scrutinising the company’s financial reports provided by the chartered accountant firm.

The zone alleged that its team found information of VAT evasion worth Tk 15.9 million by the company.

The team examined the documents of the company for fiscal years 2015-16 and 2017-18.

Assistant commissioner Jewella Khanom led the five-member audit team for examining the company’s documents.

Another audit team scrutinised documents of Protik Ceramic between FY 2012-13 and 2016-17.

The team found irregularities in the deduction of VAT at source though VAT law makes such deduction mandatory.

The team also scrutinised the CA firm’s report of the company and found evasion worth Tk 1.3 million.

Revenue officer Harun or Rashid led the audit team for detecting VAT evasion of Protik Ceramic.

The zone filed cases against the companies under VAT law.

The VAT office said it might realise the VAT evaded and if proved, might impose fine.

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