Export-oriented companies would enjoy value added tax (VAT) waiver on transfer of capital machinery and spare parts on three conditions.
One of the conditions is that both companies must have valid bond licences, according to a new General Order (GO) issued by the VAT wing of the National Board of Revenue (NBR) on Wednesday.
It was a long-awaited demand from the exporters to waive the 5% VAT on transfer of capital machineries from one company to another.
In the GO, along with the condition of having bonded warehouse licence, the NBR also tagged two other conditions to avail the tax-break facility, signed by Md Badruzzaman Munshi, second secretary of the VAT policy wing.
Export-oriented companies have to apply to the VAT commissioner for transfers by submitting necessary documents and VAT returns of both the companies must have the details of the capital machinery and spare parts, according to the GO.
Around 3,000 export-oriented companies have bonded warehouse licence to import raw materials without paying duty taxes.
