Narayanganj:Customs officials have initiated legal proceedings against Jamal Yarn Trading, a yarn importer and supplier in Narayanganj, over accusations of VAT evasion amounting to Tk 40.39 crore between January 2022 and August 2026.
According to United News of Bangladesh, the Customs, Excise and VAT Commissionerate in Narayanganj filed the case following an inspection that revealed inconsistencies in the company's sales records and VAT returns. The enforcement team conducted their inspection at the company's premises located at 56 SM Maleh Road in Tanbazar, Narayanganj Sadar, where they reviewed stock and accounting records.
During the inspection, the company was unable to provide the necessary VAT-related documents. Consequently, officials confiscated several registers, notebooks, invoice books, guard files, and Excel documents retrieved from a computer, as well as a statement signed by a company representative. A preliminary examination of these documents indicated that Jamal Yarn Trading recorded total yarn sales of Tk 659.15 crore from 2022 to 2026, with applicable VAT rates of 5 percent and 7.5 percent calculated at Tk 40.40 crore.
However, the company's VAT returns, known as Mushak-9.1, reported sales of only Tk 39.17 crore for the same period. During this time, the company deposited merely Tk 1.33 lakh in government revenue via treasury challans. After accounting for this deposited amount, authorities calculated the outstanding VAT at Tk 40,39,10,942.
The commissionerate has accused the company of breaching Sections 15, 32, 45, 49, and 64 of the Value Added Tax and Supplementary Duty Act, 2012, along with Rules 25, 40, 42, and 47 of the VAT and Supplementary Duty Rules, 2016. These allegations are subject to punishment under Section 85 of the Act. The case seeks to recover the allegedly evaded VAT, along with applicable penalties and interest, as per Section 127.