S Alam Group wants VAT refund illegally

Fails to supply edible oil to TCB on time

Staff Correspondent: S Alam Vegetable Limited, a subsidiary of the controversial S Alam Group, has sought reverse VAT benefits despite failing to supply oil on time. The company failed to supply edible oil to the government agency Trading Corporation of Bangladesh (TCB) on time. It was said that if the company can supply the edible oil within the stipulated time, the company will get VAT exemption on the product supplied. Now S Alam Vegetables is rightly asking for VAT exemption even though they can’t supply the products as per the rules. In a letter sent to the Ministry of Commerce, TCB asked to know whether the company will be given VAT benefits or not. A copy of that letter has also been given to NBR. However, NBR has not given any decision in this regard yet.
The most controversial-criticized business group of the time was S Alam Group. It is known to be a group close to Sheikh Hasinawho lost power in a mass coup. It is alleged that this group has stolen huge amount of money anonymously from some banks on the basis of closeness with the top echelons of that government. Due to these reasons, the tax department has already ordered to check the bank accounts of the group’s owner S Alam and his family.
There is instability in the banks. At such a time, the government failed to supply edible oil on time and now efforts are being made to get VAT benefit instead.
According to the source of TCB Chairman Brigadier General Mustafa Iqbal’s letter, TCB entered into an agreement with S Alam Vegetables for the supply of edible oil. TCB was supposed to supply edible oil by bottling it. In continuation of that, between April 8 and April 15, one and a half thousand tons of edible oil is supposed to be supplied. However, S Alam Vegetables supplied only 500 tonnes of edible oil during that period. As a result, the company could not supply a large part. It amounts to breach of contract with TCB. For this failure, S Alam Vegetable has given Eid holiday as an excuse at that time. But on breach of contract, TCB rightly deducted VAT against the unsupplied edible oil.
Later, S Alam sent a letter to TCB seeking refund of the VAT charged on vegetable cutting. However, TCB’s letter said, as per the terms of the contract with the company, the VAT exemption facility was valid till April 15. The company supplied another 693,594 liters of soybean oil after this period. Therefore, TCB deducts applicable VAT. Now the TCB has asked the NBR through the Ministry of Commerce whether the deducted VAT on S. Alam vegetables will be refunded, or credited to the government treasury.
Will be done?
In this regard, an officer of the VAT branch of NBR said on the condition of anonymity that usually VAT should be applied in case of violation of the terms of the contract. However, what decision will be made in this case has not been discussed yet. NBR will do what will happen according to the rules after discussion.