Thursday, April 8th, 2021

Chittagong Club evades VAT of Tk 20 crore

Thursday, 08 April 2021 | 3:22 am | 36 times

Chittagong Club evades VAT of Tk 20 crore

The Chittagong Club Limited, the club of big industrialists and businessmen of the port city, has evaded VAT of more than Tk 20 crore in the last five years by selling goods and services worth Tk 115 crore and purchasing goods worth Tk 60 crore.

The matter was revealed in an on-the-spot investigation by the Chittagong VAT Commissionerate.

Chattogram Customs Excise and VAT Commissionerate Commissioner Akbar Hossain confirmed this information to risingbd on Wednesday (April 07).

The VAT Commissionerate has taken the initiative to serve show cause notice to the Chittagong Club authorities over the VAT evasion.

It was learned that Chittagong Club Limited sells a variety of services and products including bars, banquet halls, lounges, guest houses and bakeries.

From the 2015-16 fiscal year to the 2019-20 fiscal year, the club has provided services and sold products worth Tk 114 crore 84 lakh 38 thousand and 529, against which the applicable VAT is Tk 17 crore 4 lakh 43 thousand 773.

According to the organization’s VAT return, the club authorities have paid only Tk 4 crore 15 lakh 78 thousand only. The remaining Tk 14 crore 32 lakh 7 thousand 608 has been evaded by the club.

On the other hand, at the same time, liquor of different brands worth Tk 4 crore 88 lakh 74 thousand 376 has been supplied to the club’s own bar, against which the applicable VAT is 87 lakh 97 thousand 387 taka and supplementary duty is Tk 97 lakh 74 thousand 875.

Besides, VAT on liquor of different brands collected locally at the same time is applicable at Tk 55 lakh 44 thousand 446 and supplementary duty at Tk 61 lakh 60 thousand 496. The total VAT applicable on imported liquor is about Tk 1.5 crore and the supplementary duty is Tk 1 crore 59 lakh 35 thousand 371.

According to the submission of the club, only the supplementary fee of Tk 79 lakh 73 thousand 178 has been paid by the club. The club authorities have evaded the remaining 79 lakh 62 thousand 193 taka VAT.

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