The restaurant faked its actual sales in returns submission and did not submit the value added tax it collected from customers
The VAT Audit, Intelligence & Investigation Directorate has filed a case against Khana Khazana outlet in Dhaka's Gulshan area over value-added tax (VAT) anomalies.
In its monthly VAT returns, the Indian cuisine shop showed Tk62 lakh less than the actual sales in three months. Besides, it did not pay more than Tk9 lakh VAT during the time, though the restaurant charged the customers 15 percent value-added tax.
The VAT intelligence directorate apprehended that the upscale eatery has been evading VAT since its inception and asked the authorities to look into the matter.
According to evidence that the VAT intelligence directorate seized, sales of the Khana Khazana outlet amounted to around Tk78 lakh last December-January and February. But the eatery in VAT returns showed the sales to be only Tk15.71 lakh –Tk7.85 lakh in December, Tk7.85 in January and zero sales in February.
The VAT intelligence directorate said the restaurant evaded VAT worth around Tk62 lakh in those three months.
Besides, the outlet during the time collected Tk11.72 lakh from customers as 15 percent VAT levied on food items. But it paid only Tk2.36 lakh to the revenue board, embezzling around Tk9.37 lakh.
The restaurant owner Nizam Uddin was summoned to the VAT intelligence directorate where he could not provide any satisfaction answer to those anomalies.
On July 13, the VAT intelligence directorate raided an electric motor factory belonging to Nizam Uddin at Mohammadpur in the capital. During the search, the directorate found the food sales records saved in a computer at the factory.
Apart from the food outlet, Nizam Uddin was also found to have evaded Tk1.42 crore VAT at the electric motor manufacturing unit.