The National Board of Revenue has fixed the rate of clearing and forwarding agents’ commission on export of some items including jute and jute goods, sacks, bags, carpets, fishes and shrimps for smooth collection of advance income tax on the commission, officials of NBR said.
The revenue board last week set the rate of C&F agents’ commission on bill of export of the products as the customs authorities were facing difficulties in deducting ITC in automated ASYCUDA World System, they said.
Currently, C&F agents’ commission is determined based on the number of packets of the exported goods such as Tk 10 for per bale or roll of jute, Tk 7 for per bale of raw jutes, Tk 4 per packet of other jute goods, Tk 10 for per roll of carpets.
Commission and ITC fixation are quite a complex process as types and weight of packets of export products are not specified in the current system.
C&F agents have to pay 10 per cent advance income tax on income from commission.
A NBR senior official said that some exporters prepared packets of their products with different weights. For example, someone prepare a packet of fish with a weight of 20 kg while some do it 50 kg.
In the system, C&F agents get same commission for clearing and forwarding products with different weights that create disparity among them, he said.
On the other hand, customs officials assess advance income tax on commission manually and some times C&F agents do not pay the taxes.
‘We found many mismatch in amount of taxes between manual calculation and automated ASYCUDA World System,’ an NBR official told New Age on Monday.
Considering the overall circumstances, the revenue board has fixed the rate of commission to remove the scope of tax evasion and complexities in fixing commission, he said.
According to an NBR order, C&F agents will get 0.054 per cent as commission on valuation price of export items up to Tk 10 lakh, 0.035 per cent on valuation price of Tk 10 lakh and 0.023 per cent on valuation price above Tk 20 lakh.
Minimum commission, however, has been fixed at Tk 1,000.
The rate will be applicable for jute, jute goods, jute and other textile based fibres, single yarn of jute and of other textile based fibres, woven fabrics of jute, sacks and bags of jute used for packing goods, all kinds of carpets and other textile floor coverings, frogs’ legs, fishes, shrimps and prawns
-With New Age input
