Letter of Transmittal

26 december,2011 Dr. Dhiman Kumar Chowdhury Professor MBA (Evening) Program Department of Accounting & Information System. University of Dhaka Subject: Submission of Assignment on Administration of Value Added Tax and Customs in Bangladesh. Sir As assigned, we are pleased to submit the Assignment on Administration of Value Added Tax and Customs in Bangladesh. Despite my shortcomings, we are pleased to say that I have successfully completed this challenging task. In preparing this assignment efforts have been exerted on gathering information and maintaining relevance as well as accuracy in order to avoid any sort of unintentional mistakes. We express our gratitude to you for paving me such a way in broadens of our knowledge on this subject. Sincerely yours Mahzabeen Nahid ID: 11120008 Noshin Tabassum ID: 11120004 Tasmia Batch: 20th Department of Accounting & information System. University of Dhaka ID: 111200 MBA (Evening) Program

Acknowledgement

First of all we would like to thank the Almighty for giving us a chance to complete this Assignment. This assignment would never been completed without the help and contributions of a number of people. Therefore, we would like to thank to those people for giving such valuable supports. First and foremost, we are extremely grateful to our course teacher Dr. Dhiman Kumar Chawdhury. Nikhil Chandra Shil, Mohammad Zakaria Masud and Mohammad Faridul Alam the author of the book Bangladesh Income Tax. Those people are not only helps me in selecting an appropriate topic for the report, but also assisted me in developing a precise and completing outline. Finally, we would like to thank to my classmates, friends for their never-ending support, assistance.

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Executive Summery
Value Added Tax is one of the most important sources of tax revenues in Bangladesh. Since its introduction in 1991, VAT is one of the most effective and efficient tools in resource mobilization. According to section 20 of the Value Added Tax, 1991, the Board appoints certain officials for the purpose of effective application of the VAT law and rules. These officials as a whole are known as Value Added Tax Authorities. VAT authorities may be classified into two major groups depending on their functions and powers namely Administrative authorities & Judicial Authorities. These two authorities with office bearers are depicted in the following chart in order of their respective power, authorities and responsibilities. National Board of Revenue (NBR) an organ of the Ministry of Finance. NBR was constituted in 1972 under the National Board of Revenue Order 1972, which repealed and replaced the Central Board of Revenue Act 1924. It lies at the apex of the whole revenue organization of the government and is responsible for the administration of almost all the direct and indirect taxes. The main direct taxes are the income tax, wealth tax (collected as a surcharge of income tax since assessment year 1999-2000) and gift tax, while the indirect taxes are the customs duty, excise duty, VALUE ADDED TAX (VAT), turnover tax, supplementary duty and infrastructure development surcharge. The Commissioner, Value Added Tax is appointed by the National Board of Revenue. The term Collector has been renamed by the term Commissioner through the Finance Act 1995. He is responsible to exercise the authority conferred on him by the VAT Act 1991 also can exercise full authority while controlling the sub-ordinates within his jurisdiction and territory.Director General, Central Intelligence Cell,he is appointed by the NBR and carries out functions like inspection, investigation of VAT related cases involving leakage of revenue or evasion of value added tax. Commissioner Value Added Tax. Commissioner, Large Taxpayer Unit, DG, Central Intelligence Cell, DG, Audit

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Intelligence and Investigation-VAT, DG, Duty Exemption and Drawback Office Joint Commissioner or Director, VAT, Assistant Commissioner or Assistant Director, VAT, Superintendent, VAT, Inspector, VAT.VAT Officer Additional Commissioner or Additional DG, VAT Customs wing is primarily responsible for collection of all duties and taxes at the import stage. Apart from collection of government revenue it is also responsible for trade facilitation, enforcement of government regulations, protection of society and environmental protection, preparation of foreign trade statistics, trade compliance and protection of cultural heritage. Customs collects 42% of the NBRs total revenue. The revenue target for the year 200708 was Tk. 17,812 Cr. and actual revenue collection so far (July 07 to May08) is Tk. 16, 987.06 Cr. that is 19.04% higher than the previous year. The target has been revised to Tk. 19385 Cr. for 2007-08 and with an increase of 16.25%; it has been set to Tk. 22,536 Cr. for the year 2008-09.

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