Genex Infosys Limited is officially joining the Value Added Tax or VAT collection process at the retail level through digital channels from Tuesday. The company was stuck eight months after signing the contract due to the issue of evasion of source VAT.
According to Section 85 of the Value Added Tax and Supplementary Duties Act 2012, objections have been settled, now the company secretaryMd. Mostak Ahmed is going to start installing the electronic fiscal device (EFD) machine to collect VAT. According to the source, after depositing Tk. 12 lakh evaded in source VAT through Sonali Bank to the government treasury, the obstacle to start operations was cleared by the company contracted with NBR.
According to the agreement signed on November 3, 2022, the company will install EFD machines at various businesses and markets free of cost. A minimum of 20,000 EFD-SDCs to be supplied and installed in each zone in the first year. Three lakh EFDs and Sales Data Controllers are to be supplied and installed in phases in three zones with a total of one lakh in each zone within five years of the agreement. In return, every 100 taka will get 52 paisa as commission in VAT.
According to a letter signed by Wahida Rahman Chowdhury, Commissioner of Dhaka North Customs, Excise and VAT Commissionerate, the Directorate of VAT Audit, Intelligence and Investigation conducted an audit on Genex Infosys and issued a demand letter after uncovering the issue of VAT evasion in the last two years. Then the company deposited the money through Sonali Bank.
According to NBR sources, Genex Infosys Limited has evaded Tk. 11 lakh 33 thousand 439 in source VAT against various services during the period from June 2019 to July 2021. Where 86 thousand 642 taka interest will be applicable. In total 12 lakh 20 thousand 81 taka VAT is due.
The company did not object to the allegations. Agreeing with the evaded VAT, the money was paid through Sonali Bank and informed Dhaka North Customs, Excise and VAT Commissionerate. For which reason the objection is disposed of under Section 85 of the Value Added Tax and Supplementary Duties Act, 2012.
