NBR in a dilemma over two types of BIN

Dhaka,  Thu,  21 September 2017
Published : 14 Jul 2017, 01:14:55

NBR in a dilemma over two types of BIN

Seeks opinion of commissioners
Doulot Akter Mala

The National Board of Revenue (NBR) is now in a dilemma over deciding on two types of Business Identification Number (BIN) after the government backtracked from implementation of the new VAT law from the current fiscal year.

Currently, both nine-digit under new VAT law and 11-digit BINs under existing VAT Act-1991 are active for operation of businesses including export and import.

The VAT authority issued nine-digit electronic BIN (e-BIN) to some 50,000 businesses as a ground work for implementation of the new Value Added tax (VAT) and Supplementary Duty (SD) Act-2012.  

The government planned to implement the new VAT law by replacing the existing one, but following pressure from the business community, it deferred the execution of the new law for two years.

After rolling back from the implementation of the new law, field-level offices are facing operational problems as the terms and conditions of the e-BIN have been framed as per the new law.

Also, businesses are also confused over two active BINs.

BIN is mandatory for operating different business activities including export and import.

Following the confusion, the NBR sent a letter Thursday to all field-level VAT offices across the country seeking opinion of the commissioners on BINs.

The NBR has drafted a public notice on BIN and sought opinion of the commissioners on the draft on an urgent basis within 24 hours.

It instructed the commissioners to give their opinions keeping revenue collection flow and actual situation of field offices in mind.

In the draft public notice, the NBR has pledged to scrap the old 11-digit BIN by December 31, 2017. Until that time, both the BINs will be considered as active. It also decided not to issue 11-digit BINs for new businesses after issuance of the notice.

The NBR would continue the new nine-digit BIN under the existing VAT law-1991. But the VAT wing would amend the necessary provisions of the new BIN to resolve inconsistencies.

New BIN would be made mandatory under existing VAT law. Businesses will submit VAT returns under the commissionarates in their respective jurisdiction.

Central VAT registration will not be mandatory for new BIN holders, the draft notice said.

Nine-digit BIN holders will have to obtain e-BIN for each of their units despite having central registration.

Businesses will have to submit VAT returns in their respective jurisdiction unless the NBR issues further order.

The VAT wing is working on amendment of the relevant VAT-6 and VAT-8 forms and rules to accommodate nine-digit BIN with the existing VAT Act-1991.

However, businesses can obtain central registration under online system as per existing law upon some conditions.

In the draft public notice, the NBR said the e-BIN is not related with the new VAT law. It would help to ensure hassle-free taxpayers-friendly environment.

Officials said the draft public notice might be amended and will be finalised as per suggestions of the commissioners in 12 VAT commissionarates.

They said it would be difficult to monitor and supervise the nine-digit BIN-holding businesses unless the NBR amends relevant provisions and rules of the e-BIN.

Central VAT registration of a business unit may cause difficulties as a business unit has different natures of ventures, said a field-level VAT official.

Auditing and monitoring the revenue collection growth would be difficult if such businesses have a central BIN and submit one VAT returns for all units, he said.

Automation is necessary but it should be as per existing VAT law, he said.

The NBR started issuing e-BIN from March 23, 2017.

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