Robi Axiata has pledged to adopt Alternative Dispute Resolution (ADR), an out-of-the-court settlement, to resolve its VAT-related disputes with Large Taxpayers Unit (LTU) regarding renting of commercial space.
The second largest mobile phone operator placed an application Wednesday to the Customs, Excise and VAT appellate tribunal, seeking its approval to resolve the dispute through ADR.
This is the first move by any mobile phone operator to seek to resolve disputes through ADR.
In the application, signed by Mohammad Mamun Ali, manager, legal affairs, finance division of Robi, the company said it sought to resolve the dispute regarding LTU's demand for Tk 19.3 million in VAT on rented commercial space through ADR.
Robi has also deposited Tk 50,000 with the application to proceed with the ADR.
The LTU issued a demand for Tk 19.3 million by imposing VAT on Robi for renting commercial space and building for the period of July 2015 to February 2016.
"Robi appeared before the commissioner of LTU in relation to the demanded amount, stating that in accordance with the VAT Act, VAT will be paid by the service provider i.e. the lessor/landlord," the Robi said in the application.
Robi is the recipient of such service or lessee, and not liable to pay the VAT as demanded, it wrote.
"Furthermore, there is no such provision which enables the NBR to alter statutory arrangement by which VAT liability would be shifted from the service provider to the service recipient (Robi)," it said.
The commissioner of LTU rejected Robi's response by an order, issued on October 23, 2016.
Robi, however, filed a writ petition against the order and thereafter made appeal before the tribunal, it added.
National Board of Revenue (NBR) could not popularise the out-of-the-court settlement of disputes to expedite disposal of the pending cases, an LTU source said.
He said the tribunal gave its verdict last year on same issues in favour of NBR and asked mobile companies including Robi to pay the VAT as demanded.
Total pending demand to the Robi on account of VAT on rented space is Tk 550 million, he added.
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