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BDSERVICE

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BDSERVICE 18-Feb-2018

(Continuation news of BDSERVICE): of the supreme Court of Bangladesh. However, as per an order dated 13 September 2017 the civil petition has been dismissed. The hotel management are reviewing the matter and discussing with competent lawyers to decide next course of action. Since this is an industry-wide issue involving a number of other five star hotels, management is also discussing this matter with other stakeholders. It is worthwhile to note that an amendment has been made vide (Cont. 16)

BDSERVICE 18-Feb-2018

(Continuation news of BDSERVICE): Supreme Court of Bangladesh challenging validity of the alleged claim by VAT LTU. Other five star hotels operating in Bangladesh at that time also received similar demands from VAT LTU and they also filed their respective writ petitions. On 10 September 2017, the high Court Division has passed a judgement maintaining the demand of VAT LTU. A civil petition number 1425 of 2017 was filed for leave to appeal against this judgement with the appellate Division (Cont. 15)

BDSERVICE 18-Feb-2018

(Continuation news of BDSERVICE): and organization of floor show. The said letter also claimed that since the hotel has in-house restaurants where alcoholic beverages are served and also floor show is organized, supplementary duty shall be payable on such receipts. The letter further alleged that total supplementary duty of Tk. 188,390,994 is payable by the hotel for the period from July 2005 to 2009. The Hotel has filed a writ petition on 31 May 2009 with the High Court Division of the (Cont. 14)

BDSERVICE 18-Feb-2018

(Continuation news of BDSERVICE): its hotel business after taking Value Added Tax (VAT) registration from relevant authority. As per SRO no 152/Law/2005/443-VAT dated 9 June 2005, hotels under service code S001.10 was exempted from supplementary duty. However, VAT Large Tax Payer unit (LTU) vide a letter dated 30 March 2009, alleged that for those hotels which also provide in-house restaurant services, supplementary duty shall be paid on receipt from supply of alcoholic beverages (Cont. 13)

BDSERVICE 18-Feb-2018

(Continuation news of BDSERVICE): deposited to the Government exchequer. Since these matters are pending and the company believes on reasonable ground that such alleged objection shall be quashed in favor of the company in due course by the appropriate authority no provision has been made for such disputed claims. D. Additional supplementary duty and VAT on sale of alcoholic beverage and floor show: The erstwhile Dhaka Sheraton Hotel (now renamed as Ruposhi Bangla Hotel) has been conducting (Cont. 12)

BDSERVICE 18-Feb-2018

(Continuation news of BDSERVICE): at restaurant of the Hotel and taking rebate on restaurant services without price declaration. The company is defending these objections as it believes that these were neither factually corrected nor consistent with the prevailing VAT legislation. The company maintains its position that all VAT rebates claimed are legitimate, relevant requirements of the VAT Act 1991 have been appropriately followed and any withholding VAT are duly (Cont. 11)

BDSERVICE 18-Feb-2018

(Continuation news of BDSERVICE): as deducted at source from suppliers for the period July 2005 to June 2010. Pursuant to an audit conducted by the Local and Revenue Audit Department on the Hotel operation of the company, the LTU-VAT has also issued demand notices of Tk. 282,159,786 for the years 2010-2011 and 2011-2012 and Tk. 120,220,847 for the year 2012-2013 on the grounds of not collecting supplementary duty and VAT on supplementary duty from sale of alcoholic beverage (Cont. 10)

BDSERVICE 18-Feb-2018

(Continuation news of BDSERVICE): as the company has reasonable grounds to believe its appeal against such unjust additional demand will be ultimately successful and these would be set aside at the time of disposal of final appeal. C. Value added tax (VAT) and supplementary duty: Large Taxpayer Unit (LTU)-VAT has issued a demand notice to the company for Tk. 24,732,744 which allegedly resulted from claiming VAT rebates on certain items, not paying VAT on rent received and unpaid VAT (Cont. 9)

BDSERVICE 18-Feb-2018

(Continuation news of BDSERVICE): No provision has been made in these financial statements against the above. B. Income Tax Pending Matters: The income authority has made an additional claim for the assessment years 2007-2008 and 2008-2009 amounting to BDT 5,945,210 and BDT 9,340,009 respectively against which the company has made appeals to relevant appeal authority which are still pending. No provision has been made in the accounts for the additional amount claimed by the tax authority (Cont. 8)

BDSERVICE 18-Feb-2018

(Continuation news of BDSERVICE): the ultimate outcome of which is uncertain. To comply with the terms of the contest petition, the company issued a bank guarantee in favor of the court amounting to Taka 9,200,346 which has been shown as contingent liability being letter of guarantee in the books of the company. Against the guarantee, the company has paid a sum of Taka 920,215 as margin against bank guarantee and the amount is shown under sundry debtors in these financial statements. (Cont. 7)

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