The National Board of Revenue (NBR) has extended time for filing interest and penalty free value-added tax returns for the months of March and April by June 9 this year.
NBR’s VAT wing on Tuesday last issued a special order extending the deadline for submission of VAT returns for the months with exemption of penalty and interest on applicable VAT for March and April.At that time, the NBR did not extend the deadline despite repeated demand of trade bodies and associations saying that there was no such provision in the VAT and Supplementary Duty Act-2012.
Later on May 20, the President, Abdul Hamid, promulgated an ordinance empowering the NBR to extend time for submission of VAT returns with waiving penalty and interest on applicable taxes in situations like natural disaster, pandemic, any act of God and war.
NBR extended the deadline and offered the waiver based on the ordinance.
The NBR offered the benefit as many businesses could not file their VAT returns of March and April due to general holidays imposed to contain the spread of coronavirus, according to the order signed by NBR member (VAT policy) Masud Sadiq.
The order said that businesses would have to file VAT returns by June 9 deadlines to avail the exemption.
According to the VAT law, traders will be liable to pay a penalty of Tk 10,000 and two percent interest on payable VAT in case of failure monthly VAT returns.Traders have to file their VAT returns for a month and deposit VAT they collected from consumers by 15th day of next month.
Submission of VAT returns halved and stood at 30,781 in March and at 42,600 in April from on an average around 70,000 per month due to general holidays and lockdown situation.