52. Deduction from payment to contractors, etc.-

¹52. Deduction from payment to contractors, etc.-

(1) Where any payment is to be made by a specified person to a resident on account of-

(a) execution of a contract, other than a contract for providing or rendering a service mentioned in any other section of Chapter VII;

(b) supply of goods;

(c) manufacture, process or conversion;

(d) printing, packaging or binding;

The person responsible for making the payment shall, at the time of making such payment, deduct tax at such rate, not exceeding ten percent (10%)of the base amount, as may be prescribed:

²[Provided that–

                           (a) the rate of tax shall be fifty percent (50%) higher if the payee does not havethe twelve-digit Taxpayer’s Identification Number at the time of making the payment;

                           (b) tax shall not be deducted in respect of clause (b) of sub-section (1) in respect of the purchase of direct materials that constitute cost of sales or cost of goods sold of a trading company or a manufacturing company, as the case may be;

                          ³[(bb) the rate of tax shall be 50% (fifty percent) higher if the payee does not receive payment by bank transfer or by mobile financial services or any other digital means approved by the Bangladesh Bank;"]

                           (c) where any imported goods on which tax has been paid at source under section 53 is supplied, tax at source on the said supply shall be B-A, where

                            A= the amount of tax paid under section 53,

                            B= the amount of tax applicable under this section if no tax  were paid under section 53.” |

Provided that the rate of tax shall be fifty percent (50%) higher if the payee does not have the twelve-digit Taxpayer’s Identification Number at the time of making the payment.

(d) where any goods on which tax has been paid at source under section 53E is supplied, tax at source on the said supply shall be B-A, where

A = the amount of tax paid under section 53E,
B = the amount of tax applicable under this section if no tax were paid under section 53E."⁴[;
 

(2) In this section-

(a) the specified person means-

(i) the government, or any authority, corporation or body of the government, including its units, the activities of which are authorized by any Act, Ordinance, Order or instrument having the force of law in Bangladesh;

(ii) a project, programme or activity where the Government has any financial or operational involvement;

(iii) a joint venture or a consortium;

(iv) a company as defined in clause (20) of section 2 of this Ordinance;

(v) a co-operative bank;

(vi)a co-operative society;

(vii) a financial institution;

(viii) a Non-Government Organization registered with the NGO Affairs Bureau; [or a Micro Credit Organisation having licence with Micro Credit Regulatory Authority]

(ix) a school, a college, an institute or a university;

(x) a hospital, a clinic or a diagnostic center;

(xi) a trust or a fund;

(xii) a firm; [(xiia) an association of person,]

(xiii) a public-private partnership;

(xiv) a foreign contractor, a foreign enterprise or an association or a body established outside Bangladesh; and

(xv) any artificial juridical person not mentioned above;

(xiii) a public-private partnership;

(xiv) a foreign contractor, a foreign enterprise or an association or a body established outside Bangladesh; ⁵[and

(xv) any e-commerce platform, not being any other specified persons, called by whatever name having annual turnover exceeding Taka one crore; and;

(xvi) any artificial juridical person not mentioned above;”]

(b) “contract” includes a sub-contract, any subsequent contract, an agreement or an arrangement, whether written or not;

(c) “base amount” means the higher of the-

(i) contract value; or

(ii) bill or invoice amount; or

(iii) payment;

And shall also be inclusive of মূল্য সংযোজন কর (value added tax);

(d) “payment” includes a transfer, a credit or an adjustment of payment ⁶[“or an order or instruction of making payment"]

..................................................................

 ¹ Subs. by F.A. 2016

 ²Subs. by F.A. 2017

³ Omitted by F. A. 2019

⁴ Subs. "colon" for "full stop" and ins new provise by F. A. 2020

⁵ Omitted `and` & subs. items (xv) and (xvi) instate of item (xv) by F. A. 2021

⁶ Ins. by F. A 2020

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