The National Board of Revenue (NBR) has deferred the deadline for online Business Identification Number (BIN) issuance by three months for new taxpayers as the system is yet to be fully prepared for the task.
The NBR was scheduled to issue the new BIN for all taxpayers from today (April 1) as a ground work for implementation of the new Value Added Tax (VAT) and Supplementary Duty (SD) Act from July 1, 2016.
VAT officials said online BIN will be made available for all taxpayers from July 1. However, compliant taxpayers will get the BIN from the NBR from this month.
"There are some 32,000 compliant taxpayers who will receive BIN from the NBR. The VAT online project of the NBR already started the process of issuance of the new nine-digit BIN to the complaint taxpayers," said a senior official of the NBR.
Businesses that submitted at least two VAT returns in a year will be considered as compliant taxpayers by the NBR, he added.
All of the existing 8,40,000 BIN-holders will have to obtain fresh BIN numbers from the NBR under the new VAT law.
Existing 13-digit BIN numbers will not be considered as valid after issuance of the new BIN, the official said.
He said the number of BIN-holders will come down significantly after implementation of the new VAT law as there will be a provision to obtain one central VAT registration number.
"Currently, many companies obtained separate BINs for each of their business units but under the new law, they will have a single BIN for central units of their businesses," he added.
Although the number of BIN-holders stands at 8,40,000, only 32,000 are found as compliant taxpayers who regularly submit VAT returns, he added.
Submission of VAT returns is mandatory under the VAT law. There is also a penal provision for not submitting VAT returns including Tk 20,000 penalty. For tax evasion for not submitting VAT returns, monthly 2.0 per cent interest will be added to the unpaid tax. Maximum 50 per cent of the penal tax or the equivalent amount of evaded tax can also be slapped on the taxpayers.
Officials said if anybody needs new BIN before July 1, he will have to obtain existing 13-digit BIN. From July 1, he will be able to get a new BIN online.
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Source: The Financial Express