A business must register when its turnover from taxable supplies exceeds the registration threshold set by law, while businesses below that level may be covered by turnover tax. Certain businesses must register regardless of turnover, including importers, exporters and some specified sectors. The thresholds and categories have changed through successive Finance Acts, so the current figures should be checked at the time of registration. Registration is made online and produces a BIN. We review the business model and advise on whether, when and how to register, including how branches should be treated. Late registration can attract penalties.

Specified buyers, including government bodies, banks, insurance companies, NGOs and many companies, must deduct tax from payments for certain supplies and deposit it with the treasury, giving the supplier a deduction certificate. The supplier then accounts for the amount deducted in its own return. Mismatches between the buyer's deduction and the supplier's return are a common audit issue, and buyers that fail to deduct can become liable themselves. We advise both buyers and suppliers on the rules, documentation and reconciliation needed to avoid duplicate payments, missing credits and penalty proceedings. Monthly matching of certificates to returns catches differences early.

Not always. Input tax credit is generally available only for tax paid on inputs used to make taxable supplies, supported by valid Mushak invoices or import documents and claimed within the time allowed. Credit may be restricted for certain categories of purchase, for exempt supplies and for inputs used in both taxable and exempt activities, where apportionment is needed. Credit can also be disallowed if the supplier did not deposit the tax or the invoice is defective. We review the credit position and supplier controls so that legitimate credits are protected and can be defended in an audit.

Tax can apply to services supplied from abroad to customers in Bangladesh. Depending on the type of service and the customer, the Bangladeshi recipient may be required to account for the tax under a reverse charge, or the foreign supplier may need to register, often through a local representative, particularly for digital services sold to consumers. Contracts should state who bears the cost and how deduction at source will be handled. We advise foreign suppliers and local customers on the rules, registration options and the drafting of tax clauses before services begin, so that remittances are not delayed.

Customs value is based primarily on the transaction value, meaning the price actually paid or payable for the goods when sold for export to Bangladesh, adjusted for items such as freight, insurance, certain royalties and assists. Customs may question the declared value where buyer and seller are related, the price appears low against reference data, or the documents are inconsistent. The Customs Act 2023 provides alternative valuation methods when the transaction value cannot be accepted. We help importers prepare valuation support and respond when customs proposes a higher value at clearance. Declared values should match across documents.

If customs considers that goods fall under a different heading with a higher rate, it may assess additional duty and tax, delay clearance and propose penalties. The importer can present technical evidence, such as product specifications, test reports and the explanatory notes to the Harmonized System, and may be able to clear goods on payment under protest or against security while the dispute continues. Further remedies include adjudication and appeals. We prepare classification arguments and advise on clearing goods without conceding the point for future shipments. Keep samples and lab reports for each product.

Seized goods can sometimes be released on payment of duties and fines, on provision of security, or after adjudication finds that the seizure was unjustified. The route depends on the reason for seizure, such as misdeclaration, prohibited or restricted goods, missing permits or suspected undervaluation. Time matters, because demurrage and storage charges accumulate quickly at ports and inland depots. We review the seizure documents, communicate with customs officials, prepare written submissions and, where necessary, seek urgent relief from the tribunal or the High Court Division to protect the importer's goods and commercial position. Gather all shipping documents at once.

Start by checking the notice, the legal basis and the deadline for response. Many demands arise from reconciliation differences, disallowed input tax credit or deduction at source mismatches, and can be resolved by producing records. If the authority issues a final order, the taxpayer can appeal to the commissioner and then to the appellate tribunal, usually subject to a deposit requirement, with further recourse to the High Court Division on points of law. We review the demand, prepare the response, protect the deadlines and represent the business at each stage. Do not let a response date pass.