Consequences to failure to deduct/collect VAT at sources and/or failure to deposit within prescribed time

Consequences are as follows:

Both the supplier and the person authorized to deduct/collect VAT will be equally liable for such default. VAT shall be collected from the person failing to deduct/collect VAT in such a manner as if the person were a VAT payer.

The amount not so deducted together with interest @ 2% per month on such amount shall be paid by the person who failed to deduct/collect VAT from the following day of such default.

If the deducted/collected amount was not deposited to the Government treasury within due time then the amount so deducted/collected together with interest @ 2% per month on such amount shall be paid by the person who failed to deposit VAT from the following day after expiry of the period in which it should have been deposited.

The concerned "Commissioner" can impose a personal penalty not exceeding Tk. 25,000 upon the person responsible to collect/deduct VAT or deposit deducted/collected VAT to Government treasury within due time.

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