NBR-BTRC row over VAT audit continues

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Doulot Akter Mala
The National Board of Revenue (NBR) and the Bangladesh Telecom Regulatory Commission (BTRC) still are at loggerheads over auditing the Value Added Tax (VAT) collected from the telecom operators.
The audit wing of the VAT department sought documents from the BTRC on deduction of VAT from mobile phone companies but the commission is reluctant to give those.
Sections 26 and 34 of the VAT law empowered the VAT authority to audit VAT payment of all government, semi-government and autonomous bodies, local authority, private companies, non-government organisations, banks, insurances and other industries.
Talking to the FE Thursday, director general (DG) of the VAT audit, intelligence and inspection directorate Md Lutfor Rahman said the VAT audit wing is expecting cooperation from the BTRC in its task of monitoring properly the VAT collected from the mobile phone operators.
"We have sent a total of three letters requesting the BTRC to provide us the required documents for auditing but the commission declined to give those," he said.
A senior BTRC official said the telecommunication law of the BTRC is supposed to conduct two audits---one through chartered accountant firms and another from the comptroller and auditor general office.
"We are not clear what types of documents the VAT authorities need from us. They should come in the office and proceed through the proper channel," he said.
The BTRC got a letter from NBR on Thursday and will respond to it soon, he said.
In the letter, the VAT wing has requested the BTRC to either submit the required documents by next 15 days or show a copy of exemption order, if any, from VAT auditing.
Officials said the VAT audit wing has the authority to confiscate official documents of any company in case of non-compliance with its order.
The BTRC deducted VAT from cell phone operators at the rate of 15 per cent and deposited the amount with national exchequer.
"We will examine whether the BTRC is following the rules while collecting VAT from cell phone operators. The VAT wing wants to collect the information from the BTRC through mutual understanding rather than being involved in a row," Rahman said.
Earlier, the BTRC sent a letter responding to the request from the NBR on providing the information.
In its letter, the commission said its income and expenditures are regularly audited by chartered accountant firms. Comptroller and Auditor General Office also audits all the accounts including income tax and VAT deduction every year.
The BTRC said the above mentioned sections of the VAT law are not applicable in the case of BTRC.
DG of the VAT directorate said the BTRC neither clarified why these sections will not be applicable for the commission nor showed any documents of exemption from VAT audit.
"It is our responsibility to audit VAT payment of all state-owned and private companies. Co-operation of the companies is needed for carrying out the job," he added.