Khan’s Kitchen raided for VAT evasion

The VAT Intelligence Directorate on Monday found that popular food service Khan’s Kitchen had hidden Tk1.42 crore in sales transactions between July and December 2019.

The team, led by VAT Intelligence Deputy Director Tanvir Ahmed, conducted a drive at the firm in Boro Beraid area in Dhaka, following an allegation of VAT evasion posted by a customer on Facebook.

The actual sales of the firm were Tk1.77 crore in those months, but it declared only Tk35.82 lakh in its VAT returns to the National Board of Revenue.

The team also found that Khan’s Kitchen evaded Tk22.66 lakh in VAT, including Tk4.84 lakh in interest on payable VAT, and similar mismatch between sales and declaration for other months.

The team seized commercial documents from the premises and found that the firm had used duplicate and illegal VAT challan.

VAT Intelligence is now determining the actual sales and payable VAT scrutinising the seized documents.

It will also file a case under VAT law against the firm for non-compliance.