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Finance Act, 1992

Act No.21 of 1992

An Act made to put into effect the financial propositions of the Government and to
amend certain Acts

Whereas it is expedient to put into effect the financial propositions of the Government and to
amend certain Acts for carrying out the purposes following hereinafter;

Now, therefore, it is herewith enacted as follows:-

1. Short title and commencement.- (1) This Act may be called the Finance Act, 1992.
(2) Subject to the Provisional Collection of Taxes Act, 1931 (XVI of 1931) and the declaration
issued thereunder, this Act shall have effect beginning from the first July, 1992.

10. Amendment of Act No.33 of 1988.- Section 11 and 12 of the Finance Act, 1988 (Act
No.33 of 1988) shall be cancelled.

11. Amendment of Act No.22 of 1991.- In the Added Value Tax Act, 1991 (Act No.22 of
1991),-

(1) everywhere, for the words "form" and "in the form" the words "form" and "in the form" shall be
substituted;
(2) in section 2,-

     (a) for the words "in the subject and context" the words "in the subject or context"
     shall be substituted;
     (b) in clause (b), the words and commas "or, as the case may be, the added value
     tax and additional duties of customs" shall be cancelled;
     (c) in clause (j), after the words "invoice made out under section 32" the words "and
     shall include a provisional invoice" shall be inserted;
     (d) in clause (qu), after sub-clause (v) the following sub-clause (vi) shall be added,
     namely:-
     "(vi) the production or manufacture against money of any goods by means of one's
     own plants, machinery or equipments using the raw materials or ingredients of any
     other person;";
     (e) in clause (v), for the words "advance income tax" the words and commas
     "advance income tax and supplementary duties of customs paid on any ingredients,
     which the Government may determine in this behalf by notification in the official
     Gazette, used in the production or manufacture of export goods" shall be
     substituted;
     (f) in clause (x), the words and commas "or, as the case may be, added value tax
     and additional duties of customs" shall be cancelled;

(3) in section 3, after sub-section (3) the following new sub-section (4) shall be added, namely:-
"(4) in the case of classification of imported or supplied goods for the purpose of levying and
paying added value tax under this section, the classification of the said goods under the Customs
Act shall be applicable.";

(4) in section 5,-

     (1) in sub-section (4), for the words "by rules" the words "by order" shall be
     substituted;
     (2) after sub-section (5) the following new sub-sections shall be added, namely:-
     "(6) Notwithstanding anything contained in sub-section (2) or (3), in the case of
     supply of goods produced or manufactured within the purview of sub-clause (vi) of
     clause (qu) of section 2, the value of the said goods shall, for the purpose of levying
     added value tax, not include the raw materials and ingredients of any other person,
     which had been used in the production or manufacture of the said goods:
     Provided that in such case no input tax within the purview of section 9 may be
     deducted.
     (7) Notwithstanding anything contained in this section, the Board may, if it is, on
     consideration of the importance of the case for the public interest and after adequate
     investigation, satisfied that it is, in the case of any taxable goods or services,
     expedient to ascertain the tariff value of such goods or services for the sake of
     levying added value tax or, as the case may be, added value tax and additional
     duties of customs ascertain the tariff value of such taxable goods or services by
     order issued in the official Gazette."

(5) in section 7, in sub-section (2),-

     (a) in clause (b), for the word "which" the words "in which" shall be substituted and
     the word "and" at the end of the clause shall be cancelled;
     (b) for the fullstop at the end of clause (c) a semicolon and the word "; and" shall be
     substituted and thereafter the new clause (d) shall be added, namely:-
     "(d) shall, in the case of goods on which is levied added value tax on the basis of
     their retail price, be deemed to the value of the retail price stated in section 5 (3) of
     this Act for the purpose of levying additional duties of customs.";

(6) in section 8, after sub-section (2) the following new sub-section (3) shall be added, namely:-

     "(3) The Board may, on consideration of the importance of the case for the public
     interests and after adequate investigations, exempt, by order issued in the official
     Gazette and subject to the limits and conditions mentioned in such order, any goods
     or services from turnover tax.";

(7) in section 13,-

     (a) in sub-section (2), for the words "income tax paid in advance" the words and
     commas "income tax paid in advance and additional duties of customs paid on any
     inputs, specified by the Government in this behalf by notification in the official
     Gazette, used in the production or manufacture of export goods" shall be
     substituted; and
     (b) after sub-section (2) the following new sub-section (3) shall be added, namely:-
     "(3) The Board may, by order issued in the official Gazette, direct, in the case of
     duties and taxes mentioned in sub-section (1), the refund of the amounts paid on
     inputs used in exported goods at the flat rate determined by the Board on the basis
     of the invoices made out to any exporter against the exports or, as the case may be,
     on the basis of the input-output co-efficient of the export goods.";

(8) in section 15, in sub-section (4), for the words "oblige to have himself registered" the words
"register the said person and inform him thereabout" shall be substituted;
(9) in section 18, for the words "if there have occurred changes, the registered person shall, within
fourteen days from such change" the words "if he wishes to make changes, the registered person
shall, no less than fourteen days before the date of such changes" shall be substituted;
(10) in section 36, in all sub-sections, for the words "tax" and "of the tax" the words and commas
"added value tax or, as the case may be, added value tax and additional duties of customs" and
"of the added value tax or, as the case may be, of the added value tax and additional duties of
customs" shall be substituted;
(11) in section 37,-

     (a) in sub-section (1), for the words "fufty thousand" the words "no more than fifty
     thousand" shall be substituted; and
     (b) in sub-section (2),-

          (i) after clause (a) the following new clause (aa) shall be inserted,
          namely:- "(aa) in the case of goods or services rendered by him, fails to
          pay added value tax or, as the case may be, added value tax and
          additional duties of customs, in spite of having been twice ordered by
          the officer concerned so to do, or fails to produce the registration, in
          spite of the expiration of the period settled for the production of the
          registration in any tax period;"; and
          (ii) for the words "fifty thousand", twice mentioned, the words "no
          more than one lakh" shall, at both places, be substituted;

(12) in section 38, for the words "fifty thousand" the words "no more than one lakh" shall be
substituted;
(13) in section 55,-

     (a) for sub-section (1) the following sub-section (1) shall be substituited, namely:-
     "(1) Where for any reasons any added value tax or, as the case may be, any added
     value tax and additional duties of customs payable on the supply of goods or
     services has not been levied or paid or has been short-levied or short-paid or has
     been erroneously refunded or any added value tax, additional duties of customs,
     import duties, exice duty or any other tax or duty within the purview of section 13
     (except advance income tax) has been erroneously refunded or has been
     erroneously or on account of a false declaration adjusted against any tax or duty
     paid on any goods or services rendered in Bangladesh, the person liable to pay the
     added value tax or, as the case may be, the added value tax and additional duties of
     customs or the person to whom it has been erroneously refunded or, as the case
     may be, to whom any tax or duty under section 13 has been erroneously refunded
     or erroneously or on account of a false declaration adjusted shall be served with a
     notice in writing of the officer concerned within three years of the date on which it
     was payable or of the date on which it had been paid or adjusted in the current
     account, if any, or of the date of the refundment, requiring him to pay such tax or
     duty.";
     (b) in sub-section (b), for the words "or short-paid" the words "or erroneously
     short-paid" shall be substituted;

(14) in section 72, in sub-section (3), for the words "fifty thousand" the words "no more than fifty
thousand" shall be substituted;