52AA. Deduction from the payment of certain services.-

1[52AA. Deduction from the payment of certain services.-

 

[(1)Where any payment is to be made by a specified person to a resident on account of a service as mentioned in this section, the person responsible for making the payment shall, at the time of making such payment, deduct income tax at the rate specified in the Table below:-

Table

 

 

SL. No

 

Description of service and payment

Rate of deduction of tax

Where base amount does not exceed Tk. 25 lakh

Where base amount exceeds Tk. 25 lakh

1

Advisory or consultancy service

10%

12%

2

Professional service , technical services fee, or technical assistance fee

10%

12%

3

(i)    Catering service;

(ii)   Cleaning service;

(iii)  Collection and recovery

service;

(iv)  Private security service;

(v)    Manpower supply service;

(vi)  Creative media service;

(vii)  Public relations service;

(viii)  Event management service;

(ix)     Training, workshop, etc.

organization and

management service;

(x)       any other service of similar

nature-

(a) on commission or fee

(b) on gross bill amount

 

 

 

 

 

 

 

 

 

 

 

 

 

 

10%                                            1.5%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

12%                                            2%

4

Media buying agency service

a) on commission or fee

(b) on gross bill amount

 

10%  

0.5%                                                                                     

 

12%

0.65%                                                                                       

5

Indenting commission

 

6%                                           

8%                                            

6

Meeting fees, training fees or honorarium.

 

10%                                           

12%                                           

7

Mobile network operator, technical support service provider or service delivery agents engaged in mobile banking operations

 

10%                                           

12%                                           

8

Credit rating service

10%                                           

12%                                           

9

Motor garage or workshop

6%

8%

10

Private container  port or dockyard service

6%

8%

11

Shipping agency commission

6%

8%

12

Stevedoring/berth operation commission

10%

12%

13

Transport service, carrying service, vehicle rental service

3%

4%

14

 Any other service which is not mentioned in Chapter VII of this Ordinance and is not a service provided by any bank, insurance or financial institutions

10%

12%




Provided that if the amount for services mentioned in SL No. 3 and 4 of the Table shows both commission or fee and gross bill amount tax shall be the higher amount between (i) and (ii) where-

  1. tax calculated on commission or fee applying the relevant rate in the table; and
  2.  B x C x D, where

B = Gross bill amount

C = 10% for Sl. 3 and 3.5% for Sl. 4, and

D = rate of tax applicable on commission or fee:

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

 

 Provided further that where the Board, on an application made in this behalf, gives certificate in writing that the person rendering such service is otherwise exempted from tax under any provision of this Ordinance, the payment referred to in this section shall be made without any deduction or with deduction at a lesser rate for thatincome year.

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1 Subs. by F. A. 2017
 

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