Classical Hometex sued on charge of evading Tk 6cr VAT

The Value Added Tax (VAT) Intelligence has filed a case against an outlet of Classical Hometex at Islampur of Dhaka on a charge of evading VAT worth around Tk 6 crore.

In a press release, the VAT Intelligence on Thursday said that the business house dodged around Tk 6 crore by concealing information of its actual sale price worth Tk 141 crore.

The VAT Intelligence came to know that the business outlet has been evading since long by concealing its actual sale price.

Based on secret information, the law enforcers-led by its Deputy Director Tanvir Ahmed carried out a raid at the business house on December 11 and found anomalies in its VAT return.

During the raid, Shamim Hossain, managing director of the business institution, failed to provide necessary papers to the law enforcers according to their requirements.

Later, they seized many documents kept in its computer and claimed to have found huge anomalies in VAT-related papers.

The business institution sold out products worth Tk 200.67 crore from May 2017 to October 2021 but information of monthly sale amount worth Tk 76.85 crore was shown to the local VAT circle.

The VAT Intelligence unearthed anomalies worth Tk 141 crore between its return and actual sale amount at that time.

By doing so, the business institution denied the government Tk 4.43 crore and around Tk 1.55 crore will be added to the actual figure with two percent monthly interest rate according to the existing VAT law.

There are six branches of the Classical Hometex Ltd and it prepares bed sheets, comforters, blankets and other home textile items and sells those across the country.

According to the VAT law a 7.5 percent VAT is applicable for these items.

The report has been sent to Dhaka South VAT Commissionerate for taking the next course of action to realise the VAT the company evaded, said the press release.