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8 November, 2019 00:00 00 AM
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NDE Ready Mix sued for ‘tax evasion’

Company denies wrongdoing
Staff Reporter, Dhaka

Dhaka West Customs and VAT authorities have said it unearthed Tk 20 crore tax dodging by a ready-mix concrete company in Savar area of the capital.  

Separate cases have been filed against NDE Ready Mix Concrete Ltd under VAT law-2012 and Customs Act-1969, said a statement by the authorities Wednesday.

In a drive on Wednesday based on a tip-off, the authorities concerned said it found NDE Ready Mix, which is one of the concrete makers of the country, to be engaged in fraud to enable tax dodging.

The company was producing concrete without the basic element of limestone making construction with NDE product risky, while selling limestone imported under special privilege in the open market, said customs officials.

Dhaka West Commissioner officials said they found that NDE Ready Mix Concrete used crushed stone, cement, sand and water to make its concrete at its workshop in Savar. Limestone was not one of its ingredients for concrete. The firm has been operating the business under vat registration number: 001111884-0403, the officials said.

However, the firm imported a huge amount of limestone, by claiming it as an ingredient, and applied the government’s special harmonized system code to use SRO facilities and pay a reduced amount of VAT. NDE Ready Mix used fraudulent means to give wrong information to the Savar revenue office regarding the raw material it used in making the concrete, allowing it to evade duties, said customs officials.

The firm sold the limestone in the open market which was illegal. As a result, the government lost a huge amount in revenue, the officials said.

According to the law, the firm was not permitted to import limestone using SRO with special facilities as it was not a limestone or cement manufacturer. VAT-7 facilitates allow such industries to use the 31 percent revenue-enabled code instead of 68.8 percent on the import of limestone products, said the release.

The company has released its products under 5 bills of entry on port. The entries are: BE C-1511324 (Date: 26.09.2019), C-1534547 (Date: 1.10.2019), C- 1569312 (Date: 9.10.2019), C-1598114 (Date: 15.10.2019) and C- 1668941 (Date: 28.10.2019).

The firm has illegally imported a total of 204,980 metric tonnes of lime stone using the facilities, the officials said. These imported products were estimated to be worth Tk 52 crore and 62 lakh and Tk 16.31 crore was paid as duty. According to standard revenue structure applicable for NDE Ready Mix, the payable tax was Tk 36.20 crore with tax rate of 68.8 percent. As such, the firm has dodged around Tk 20 crore by illegally claiming VAT-7 facilities.

Dhaka West Vat Commissioner Moinul Khan has already withdrawn the item limestone from the announcement for VAT-7 of the company. He has also directed customs houses in Dhaka and Chattogram not to release the products of the company under the mentioned SRO, said the press statement.

Meanwhile, NDE Ready Mix authorities, in a newspaper advertisement, claimed that news published in various media outlets yesterday about VAT evasion by the company were misleading and inaccurate.

The company said that it uses limestone during the manufacturing of ready-mix concrete, as is done by many other manufacturers in the country, and that their product is BUET certified.

The company also claimed said the allegation of dodging Tk 20 crore in VAT is false and a vested quarter is trying to establish this to tarnish its image.

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Editor : M. Shamsur Rahman

Published by the Editor on behalf of Independent Publications Limited at Media Printers, 446/H, Tejgaon I/A, Dhaka-1215.
Editorial, News & Commercial Offices : Beximco Media Complex, 149-150 Tejgaon I/A, Dhaka-1208, Bangladesh. GPO Box No. 934, Dhaka-1000.

Editor : M. Shamsur Rahman
Published by the Editor on behalf of Independent Publications Limited at Media Printers, 446/H, Tejgaon I/A, Dhaka-1215.
Editorial, News & Commercial Offices : Beximco Media Complex, 149-150 Tejgaon I/A, Dhaka-1208, Bangladesh. GPO Box No. 934, Dhaka-1000.

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