Machinery Sales from EPZ

CBC OPTRONICS (BD) CO., LTD. Who will deduct Buyer References   In EPZ Area Outside EPZ (Bonded Area) Outside EPZ (Non-bonded Area Buyer will deduct by treating CBC Optronics as Supplier till 15 Lakh-2%exceeds 15 Lakh to 50 Lakh- 3%exceeds 50 Lakh to 1 Crore- 4%above 1 crore- 5% till 15 Lakh-2%exceeds 15 Lakh to 50 Lakh- 3%exceeds 50 Lakh to 1 Crore- 4%above 1 crore- 5% till 15 Lakh-2%exceeds 15 Lakh to 50 Lakh- 3%exceeds 50 Lakh to 1 Crore- 4%above 1 crore- 5% As per section 52 of Income Tax Ordinance 1984, Rule 16 (16) of Income Tax Manual Part II To sale of Imported Machinery and equipment1. Need to get permission from BEPZA2. Tax Deducted Source:3. VAT : Who will deduct or impose Buyer References   In EPZ Area Outside EPZ (Bonded Area) Outside EPZ (Non-bonded Area CBC Optronics (BD) Co., Ltd. will impose from Buyer Zero Rated VAT Zero Rated VAT 15% As per New Value Added Tax & Supplementary Duty Act, 2012, Rule-2 clause-60, Rule-15, Rule-16. 4. When the machineries are sold by more than the purchasing Price. It will be treated as Capital Gain. Tax will be charged 15% on the capital gain at the time of Tax Assessment. As an example, if purchase price of an asset is BDT 100 and it will be sold by BDT 120. Then Capital Gain is (120-100) = BDT 20. Tax will be (20*15%) = BDT 35. When the machineries are sold by more than the Book Value and less than the purchasing Price, it will be treated as Revenue gain and Regular Company Tax will be applicable. Revenue gain is the difference between purchase value and book value.As an example, if purchase price of an asset is BDT 100 and its useful life is 5 years. After 3 years its Book value is 40. But after 3 years at the time of selling, it will be sold with BDT 60. Then the revenue gain will be (60-40) = BDT 20 and Tax will be (20*32.5%) = BDT 6.