Retains 15pc VAT on 2G revenue sharing
The National Board of Revenue has exempted the mobile phone operators from giving 15 per cent value-added tax on their revenue from 3G services to be shared with the Bangladesh Telecommunication Regulatory Commission, NBR officials said.
The revenue administration, however, retained 15 per cent VAT on revenue from the 2G services shared with the BTRC as the order issued on Monday mentioned 3G revenue sharing only, the NBR officials said.
As per the conditions of 3G licensing, mobile phone operators would have to give 5.5 per cent of their net revenue to the BTRC after paying 15 per cent VAT to the NBR from their total earnings from the services, the NBR order said.
On the other hand, under the VAT Act-1991, the BTRC is responsible to collect VAT at source at the rate of 15 per cent on the amount given to it in the form of revenue sharing and that creates double taxation, it said.
In this context, the NBR has exempted the BTRC from collecting VAT at source from the revenue to be shared with it by the mobile operators as per the conditions of 3G licensing, it said.
The NBR officials said that telecom operators who would be providing 2G mobile phone services would have to pay 15 per cent VAT on revenue sharing as the revenue board provided the exemption only for 3G revenue sharing.
It was their [mobile phone operators] demand
for exemption from paying VAT on revenue sharing to participate in the 3G auction, they said.
Now, the government has provided the exemption with a hope that they will participate in the auction, they added.
-With New Age input
