If you are looking for a practical guide to know everything about tax deduction in Bangladesh then this book is perfect for you.
Why is the “Tax Deduction 2021” book a practical guide for you?
Lots of real life examples have been provided in the “Tax Deduction 2021” book to show you how to calculate tax and VAT at source on invoice amount, what will be the penalty in case of failure to deduct or deposit the tax to the government treasury, how to calculate the penalty etc. You will get a detailed tax deduction guideline from this book.
And the most important issue is that whatever you will learn, it should be complete. Tax Deduction 2021 is a complete solution for you which includes tax and VAT calculation as well as how to prepare treasury challan, Mushak 6.3, Mushak 6.6 etc are discussed in the book. So, this book will help you to know everything about the withholding tax system in Bangladesh for the financial year 2021-22.
What areas are covered in the Tax Deduction 2021 book that I am telling you the book is an income tax deduction guide for you?
Let’s briefly discuss the areas covered in the book.
Tax Deducted at Source
You know tax deduction or collection shall be made according to Chapter VII of the Income Tax Ordinance 1984. Section 50 to 56 shall follow during making the payment to deduct or collect tax.
In Tax Deducted at Source chapter, all the important TDS like how to calculate TDS on salaries, how to calculate tax on cumulative basis under section 52 and 52AA, if tax was paid under section 53E at import stage and the same goods supplied under section 52, then how you will calculate tax are discussed using example in each scenario. So, this book will help businesses to know how to deduct tax at source during making any payment.
In the “Tax Deduction 2021” book, I have also shown what will be the tax on gross bill or commission amount or on the both amount if the service provider invoice under section 52AA.
Not only the above sections, a total of seventeen important sections are included in this chapter which are discussed in detail with examples in each complex situation.
And the Tax Collected at Source is included in a separate chapter so that you can understand when you have to deduct tax at source and when you have to collect tax at source.
Tax Collected at Source
As a responsible person, when you have to collect tax then you have to know how it will impact your responsibilities.
How to calculate tax during collection of tax like collection of tax from persons engaged in real estate or land development business under section 53FF or collection of tax on transfer of property under section 53H? And what will be the impact from whom the tax has been collected?
You know in the above two cases, there are implications of minimum tax under section 82C. How the tax collected at source under these sections shall be treated during tax calculation are discussed in this book. And what will be the impact of final settlement tax which fall under section 82C are also included in the “Tax Deduction 2021” book.
And in another chapter, Value Added Tax (VAT) Deducted at Source (VDS) has been discussed in detail where lots of examples and required Mushak forms are also discussed in the book.
You know each year a new SRO is issued and few changes are made in withholding VAT. This year a new SRO 240 has also been issued on 29 June 2021 and there are several changes made in withholding VAT.
Besides the changes, VAT deducted at source is generally complex due to several exceptions in the rules. Sometimes, VAT shall be deducted even if the rate is 15% but sometimes, the full amount shall be paid to the supplier even though the rate is below 15%.
So when do you have to deduct VAT or pay the VAT amount? And there are specified responsibilities that shall be followed by both supplier and withholding entity. All these VDS procedures that shall be followed by the both parties are discussed in detail in the book “Tax deduction 2021”.
And several forms are also required to be issued by the supplier and withholding entity like Mushak-6.3 and Mushak-6.6. How you will prepare these Mushak forms are shown in the book.
When you deduct or collect tax and VAT at source, you will require TDS rates with section references and VAT rates with H. S. Code. Because, without applicable rates, you could not deduct or collect tax and VAT at source.
Tax and VAT Rates
TDS and VDS rates are very important to know during making the payment. At the end of the book, an appendix section has been included where all the tax and VAT rates including section references and H. S. Code is included.
Whenever you are required to know any TDS and VDS rate, you can easily find out the rates. Not only the tax and VAT rates, full first schedule consisting exempted goods and services and a basic SRO related with exempted goods and services also provided in the appendix section.
So, you will be able to know which goods or services are exempted from VAT as well as if VAT is applicable then what is the rate. Additionally, a second schedule which consists of Supplementary Duty (SD) rates is also included at the end of the book in the appendix section.
You have understood that everything you should know about TDS and VDS are included in the book “Tax Deduction 2021” so that you do not need to search anywhere else. Whenever you require any explanation, TDS and VDS payment manner and deadline, preparation of treasury challan and Mushak form, tax and VAT rates then open the book and you will get your solution.