Introduction:
Valued Added Tax (VAT) is a very important matter of today’s life. Everybody comes across different aspects of VAT in course of his daily life and professional life. Be it an industry or any business house or any government or non-government office, there lies either the need for paying VAT or deducting VAT at source. All retail buyers require knowing the need for and importance of taking VAT Challan. So, it is important for everyone to obtain basic knowledge on VAT. It is more important for them whose decisions matter for their businesses, industries and offices. Moreover, people dealing with income tax, audit, management, finance, procurement, bills payable etc. sections in different businesses and industries require knowing many things regarding VAT, some of those matters are tricky in nature. Updated knowledge in the area is needed to lead a team in corporate houses. An executive or a corporate team leader not only requires to know the rules and regulations currently in practice but for promoting the purposes of the organizations, they require to know what rules and regulations are in the offing that will impact them. The Value Added Tax and Supplementary Duty Act, 2012 (new VAT law) has been passed by the parliament in 2012. Preparatory work is now going on to make the law fully effective from 1 July 2019. The executives and corporate leaders require knowing promptly what are the basic features of the new VAT law and how the new VAT law differs from the VAT law currently in force. The new VAT law shall be implemented through automated system. So, it also requires knowing what shall be the role of the VAT payers in the automated process. VAT deduction at source is a very important aspect of our VAT system today. People serving in the VDS withholding entities require knowing in details the provisions regarding VDS. This program is designed to provide the participants the VAT knowledge in these areas.
How will participants benefit after this training?
The purpose of this program is to provide the participants basic understanding regarding the features of the new VAT law and to make them understand how the new VAT law is different from the current VAT law (VAT Act, 1991). Another purpose is to make them understand the features of the automated system through which the new VAT law shall be implemented. In addition, providing working knowledge regarding the provisions of the current VDS system is also a purpose of this training. Thus, attending the program, the participants:
— Can develop knowledge regarding the basic features of the new VAT law & Customs law;
— Can develop knowledge regarding how the new VAT law is different from the current VAT law;
— Can understand the basic features of the automated system through which the new VAT law & Customs law shall be implemented;
— Can understand their role to implement the new VAT law;
— Can understand the basic provisions of current VDS system;
— Can plan strategies for their organizations ahead to face future challenges;
Contents of training:
| Day-1: Value Added Tax (VAT) System in Bangladesh: An Overview
1.Brief History of Value Added Tax System. 2.Value Addition & Value Added Tax (VAT). 3.VAT & Supplementary Duty (SD) Act-2012 & Rule-2016. 4.Schedules of VAT & SD ACT- 2012. 5.VAT, SD, Turnover Tax (TT) & Advance Tax (AT) Rates. 6.Important Definitions Under VAT & SD Act. 7.Statutory Regulatory Order (SRO)/General Order/Special Order. 8.Excise Duty and Surcharge, Rate, Imposition & Calculation.
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Day-2: VAT Registration: Eligibility, Procedure and Practical Aspect
1.VAT Registration & Turnover Tax Enlistment (Mushak-2.1). 2.Enlistment Threshold & Registration Threshold. 3.Mandatory, Voluntary & Force Registration. 4.Central VAT Registration, It’s Process & Terms Conditions. 5.Unit Registration & Registration Process. 6.Amendment, De-registration & Cancellation of Registration. 7.Special Provision for Registration & Use of VAT Registration. 8.Registration Related SRO, Order, and Explanation.
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| Day-3: Imposition and Calculation of VAT, Zero Rate & VAT Exemption
1.Legal Provisions for Imposition of VAT, SD, AT & TT. 2.Economic Activity, Supply and Time of Supply. 3.Value of Taxable Import, Supply and Trade. 4.Adjustment and Net Tax Calculation. 5.VAT on Imported Services (Reverse Charged to Recipient). 6.Zero Rate, Export, Deemed Export and Considered as Export. 7.VAT Liability, Time of Payment & Procedure. 8.Supplementary Duty (SD) Special Scheme.
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Day-4: VAT Rebate, AT Adjustment and Refund Procedure.
1.Input and Input-Tax. 2.Input Tax Credit and it’s Mechanism. 3.Legal Provisions for Input Tax Credit. 4.Terms and Conditions for Input Tax Credit. 5.Partial Input Tax Credit & Calculation Method. 6.No Cascading Effect When Rebate Allowed. 7.Documents Required for VAT Rebate. 8.Difference Between Rebate, Refund & Drawback.
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| Day-5: VAT Books of Accounts & Input-Output Co-efficient
1.Accounting and Business Accounting. 2.VAT Accounting and It’s Importance. 3.VAT Accounting Related Act-Rule, Records & Documents. 4.Importance of Record-Keeping in VAT System. 5.Credit Note & Debit Note (Musak 6.7 & 6.8). 6.Accounting Related Register (Musak 6.1, 6.2, 6.2.1, 6.6, 6.10). 7.Accounting Related Invoice (Musak 6.3, 6.4, 6.5, 6.6, 6.9). 8.Input-Output Co-Efficient (Musak 4.3)& it’s Importance.
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Day-6: Practical demonstration of most necessary VAT forms
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| Day-7: VAT Deduction at Source (VDS) and it’s Procedure.Incoterm
1.VAT Deduction at Source (VDS) and It’s Importance. 2.Legal Provision and Related Rules for VDS. 3.Product & Services Under VAT Deduction. 4.Deducting Authority, Supplier & Their Responsibility. 5.Procurement Provider Under VDS. 6.Time of Deduction & Payment Procedure. 7.Adjustment by Deducting Authority & Supplier. 8.Penal Provision for Non-compliance of VDS.
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Day—8: 4.3: price declaration, detailed discussion.
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| Day—9: VAT-TT Return (9.1, 9.2, 9.3, 9.4) Preparation and Submission.
1.Return. VAT & Turnover Tax Return. 2.Fill-up and Submission of VAT-TT Return (Musak 9.1/9.2) 3.Late Submission and Amendment of Return (Musak 9.3/9.4) 4.Supply, Purchase and Their Entry in Return. 5.Adjustment (Increasing and Decreasing) in Return. 6.Different Sub Forms and Their Utilization. 7.Negative Balance and It’s Carry Forward. 8.Case Study (VAT/TT Return Preparation)
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Day—10: VAT Authority, Irregularities/Non-Compliance, Adjudication & Appeal
1.VAT Authority, Their Duty and Responsibility. 2.Irregularities & Non-Compliance Under VAT Act. 3.Penalty for Irregularities & Non-Compliance Under VAT Act. 4.Adjudication & Adjudicating Authority. 5.Adjudication Order and Procedure. 6.Appeal, Time and Procedure of Appeal. 7.Appellate Authority and Their Responsibility. 8.Appeal Disposal Procedure.
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| Day—11: Offence and Penalty, Trial, ADR and Arrear Collection.
1.Accounting and Business Accounting. 2.VAT Accounting and It’s Importance. 3.VAT Accounting Related Act-Rule, Records & Documents. 4.Importance of Record-Keeping in VAT System. 5.Credit Note & Debit Note (Musak 6.7 & 6.8). 6.Accounting Related Register (Musak 6.1, 6.2, 6.2.1, 6.6, 6.10). 7.Accounting Related Invoice (Musak 6.3, 6.4, 6.5, 6.6, 6.9). 8.Input-Output Co-Efficient (Musak 4.3)& it’s Importance.
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Day-12: VAT Audit, VAT Agent, VAT Consultant.
1.Audit and VAT Audit. 2.Importance of VAT Audit Manual for Effective Audit. 3.Risk Criteria and Other Issues Considered for VAT Audit. 4.Audit Techniques and Documents Required for Effective Audit. 5.Type of Documents & Keeping Methods for Smooth VAT Audit. 6.VAT Agent, Procedure of Appointing VAT Agent. 7.VAT Consultant, Procedure for Accreditation. 8.Role & Function of a VAT Consultant and VAT Agent.
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| Day—13: Net VAT Calculation & Financial Treatment
1.Net VAT Liability Calculation, 2.Accounting Treatment of VAT related Transaction, 3.Practical demonstration and discussion of all form for VAT Accounts |
Day—14: Special Review Session on VAT: Determination and Payment of VAT & SD |
