Tax- Main Copy Final

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Introduction:

To the majority of the people in our society when you say to them food and beverage

they think fast food and restaurants. Rarely do they take into consideration the tons

of other food and beverage outlets that encompass this industry and make it one of the

largest ever growing industries in the world. Food is a necessary part of life and willalways be needed. Those are some reasons why this industry has an above average

future outlook.

The food and beverage industry includes a vast amount of venues. It is a very

diverse industry consisting of commercial operations and non-commercial operations.

Commercial operations can be classified as either part of the restricted market or the

general market. Examples of the restricted market would be some institutional

employee catering, or private clubs. The general market includes but is not limited to

hotels, fast foods, vending machines, pubs, amongst others. Non-commercial

operations are establishments where meals and snacks are prepared / served as an

adjunct, supportive service to the primary purpose of the establishment. For

example: hospitals, schools, and prisons. These may also fall under the subsidized

category of either private or public ownership which may include employee catering

or institutional catering. These foodservice operations financial goal does not involve

generating profit from the sales of food and beverage product, and may also be called

institutional foodservice. Some of the different types of food and beverages

establishments are: bars & pubs, cafes, canteens, coffee shops, fast food outlets, food

courts, hawker stalls, restaurants, snack bars, cafs, coffee houses & snack bars,

coffee shops, eating houses & food courts, fast food restaurants, food caterers, food

stalls, hawker stalls, restaurants. All of these fall under different categories.

Origin of Tax:

Late 13 bc., from Old French. Taxers impose a tax" (13bc.), from L. taxare

"evaluate, estimate, assess, handle," also "censure, charge," probably a frequentative

form of tangere "to touch" (see tangent). Sense of "burden, put a strain on" first

recorded 1672; that of "censure, reprove the first known system of taxation was in

Ancient Egypt around 3000 BC - 2800 BC in the first dynasty of the Old Kingdom.

The earliest and most widespread form of taxation was the corve and tithe. The

corve was forced laborprovided to the state by peasants too poor to pay other formsof taxation (labor in ancient Egyptian is a synonym for taxes). Records from the time

Principles of Taxation1
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document that the pharaoh would conduct a biennial tour of the kingdom, collecting

tithes from the people. Other records are granary receipts on limestone flakes and

papyrus Middle English (also in the sense 'estimate or determine the amount of a

penalty or damages', surviving in from Old French taxer, from Latin taxare 'to

censure, charge, compute', perhaps from Greektassein 'fix.

Definition of Tax:

Government levy on persons, groups, or businesses. Taxes are a general obligation of

taxpayers and are not paid in exchange for any specific benefit. They have existed

since ancient timesproperty taxes and sales taxes were known in ancient Rome

but tariffs was favored over internal taxes as a source of revenue. In modern

economies, there has been a trend away from tariffs in favor of internal taxes, which

provide the majority of revenues. Taxes have three functions: to cover government

spending, to promote stable economic growth, and to lessen inequalities in the

distribution of income and wealth. They have also been used for nonfiscal reasons,

such as to encourage or discourage certain activities. Taxes may be classified as direct

or indirect. Direct taxes are those that the taxpayer cannot shift onto someone else;

they are mainly taxes on persons and are based on an individual's ability to pay as

measured by income or net wealth. Direct taxes include income taxes, taxes on net

worth, death duties and gift taxes. Indirect taxes are those that can be shifted in whole

or in part to someone other than the person legally responsible for payment. These

include excise taxes, sales taxes, and value-added taxes. Taxes may also be classified

according to the effect they have on the distribution of wealth. A proportional tax is

one that imposes the same relative burden on all taxpayers, unlike progressive taxesand regressive taxes.

Overview of Tax:

The legal definition and the economic definition of taxes differ in that economists do

not consider many transfers to governments to be taxes. For example, some transfers to

the public sector are comparable to prices. Examples include tuition at public

universities and fees for utilities provided by local governments. Governments also

obtain resources by creating money (printing bills and minting coins), through

voluntary gifts (contributions to public universities and museums), by imposing

penalties (traffic fines), by borrowing, and by confiscating wealth. From the view of

economists, a tax is a non-penal, yet compulsory transfer of resources from the private

to the Public sectorlevied on a basis of predetermined criteria and without reference to

specific benefit received.

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Pieter Brueghel the Younger, The tax collector, 1640

In modern taxation systems, taxes are levied in money; but, in-kind and corve taxation

is characteristic of traditional or pre-capitalist states and their functional equivalents.

The method of taxation and the government expenditure of taxes raised is often highly

debated inpolitics and economics.

About Food and Beverage:

F&B is a common abbreviation in the Commonwealth countries. F&B is typically the

widely accepted abbreviation for "Food and Beverage", which is the sector/industry that

specializes in the conceptualization, the making of, and delivery of foods. The largest

section of F&B employees are in restaurants and bars, including hotels, resorts, and

casinos.

Nature of food and beverage in Bangladesh:

After independence the food habit of Bangladeshi p eople has been changed

a lot. Besides our traditional food consumer of Bangladesh like to take western food

also after 1980s. As a result of global marketing this was not too hard for the

consumers. Different foreign food companies were established in Bangladesh. Beverage industry is

one of them. But more interestingly we dont know beverage is also our cultural

food because beverage doesnt mean only carbonated drinks. Yoghurt, soup and litchi

are a l s o b e v e r a g e o f o u r o w n t r a d i t i o n w h i c h c o n s u m e d f o r

t h e l a s t 1 0 0 y e a r s i n Bangladesh. But carbonated beverage is new in

Bangladesh and today our research is on carbonated beverage market in Bangladesh and

consumer reaction to it. Carbonated beverage entered into our market in the later part of

1980. At that time there were only few companies in Bangladesh. But by the change

of time and western culture influences its become very popular in Bangladesh. By year 2000

more than 12 Beverage Company operating business in Bangladesh and most of them

are foreign companies. (Bangladesh Beverage: 2006)Th i s p a pe r i s d iv id ed i n t o s ix

sec t ion s . T he f i r s t s ec t ion con ta in s in t roduc t ion , objectives and

methodology. Section two is designed to focus on the literature review. The third

section i s dedicated to the conceptual analys is of beverage. In the

fourth sec tion, an overview of the beverage market in Bangladeshexplained.

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Food and Beverage directly do:

Most hotels and large restaurant chains have a food and beverage director. This is an

individual who manages the entire food and beverage operation of a company. He is

responsible for coordinating the management of large banquets, weddings,conferences, and restaurant activities. This director is responsible for the oversight of

employees, inventory, and budgets of the food and beverage department.

The education for a food and beverage director is typically either a hotel restaurant

management program or a culinary degree. The director should understand basic hotel

management and restaurant management. This type of curriculum is available at many

culinary colleges throughout the world. Many directors work through their way up

through various disciplines of restaurant management operations. This typically

includes cooking, serving, and shift management training. The director is responsible

for the entire restaurant and banquet facility team. His staff size can range from 50 to

100 employees, depending on the size of the company.

Most food and beverage director positions require the management of the alcohol

budget. This requires strict monitoring of bartenders, the bar area, and pouring

techniques. The director is required to perform daily inventory of liquor sales and

usage to ensure adequate profit margins are maintained in the bar area

Food & Beverage Department:

It requires a big effort to keep those three-million visitors from going hungry.

Joining the Food & Beverage Department means being part of a team that creates and

serves food in one of many food outlets around the park. We hire more than

1,000 people each season to work in our formal dining rooms, fast food outlets, delis

and cafeterias. The Food & Beverage department is the largest department on board

comprising of various areas working together to cater to our guests food and

beverage needs. From mouth-watering meals to deliciously refreshing cocktails, the

food and beverage department works around the clock to ensure our guests receiveworld class service, award winning cuisine and memorable experiences at all our bars,

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restaurants and lounges. Entry level positions within this department include waiters,

cooks, bar servers, hotel stewards and galley stewards, however there are numerous

management and supervisory positions as well as opportunities for career

advancement.

About Bangladesh Market:

The food processing industry is a 4.5

bill USD industry in Bangladesh Processed food represents one of the major potential

sectors in terms of its contribution to value addition and employment. The sector

accounts for over 22% of all manufacturing production and employs about 20% of the

labor force. All food processing enterprises account for 5% of GDP (around 4.48 bill

USD). There are nearly 700 processed food manufacturing enterprises in the country.

These include processing of bakery confectionary, fruits and vegetables, cereals,

dairy, carbonated and non carbonated fruits juices, drinks, others beverages andvarious other food products. At the moment Bangladesh exports around 90 kinds of

agro-processed food products to over 70 countries throughout the world. However,

value-wise 81% of the products are exported to ten major importing countries

including Italy and UK in Europe, USA and to a smaller extent Canada in the

Americas and a number of Middle East Countries with KSA, UAE and Kuwait taking

the lead.

Food & Beverage Management

The management positions within this department require self motivated candidates

with strong leadership skills, a positive attitude, and a keen eye for detail. They must



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have a pleasant personality, be fluent in conversational & written English and be able

to positively motivate and lead our Food & Beverage team. Must be extremely quality

conscious and be familiar with accounting systems and practices, food costs and

beverage cost structures and inventory management. Computer skills (MS Office) are

another strong requirement.

Food and Beverages Rules and Regulations:

Any food or beverage which is prepared to the order of the purchaser or which is

cooked and/or maintained at or near the cooking temperature or kept at or above room

temperature to make it or for it to remain palatable and suitable prior to sale, shall be

considered to be made available for immediate consumption and subject to the

Prepared Food and Beverage Tax.

Sales from vending machines are specifically exempt from the Prepared Food

and Beverage Tax

Sales of prepared food and beverages are subject to the Tax unless prepared by

someone other that the retailer for immediate consumption and merely placed on

display for sale purposes. Examples include prewrapped sandwiches, packaged

crackers, prepacked ice cream, etc.

Sales of prepared foods and beverages available for immediate consumption

that are sold on a "take-out", "to-go" or delivery basis are subject to the PreparedFood and Beverage Tax.

Any alcoholic or nonalcoholic beverage sold by the drink or as part of a meal

is subject to this tax. Exceptions would be soft drinks and alcoholic beverages (i)

purchased in unopened package form (i.e., six pack, cans, bottles, cases) and (ii) not

to be consumed on the premises of the retailer or where otherwise served by a

caterer. Examples of taxable beverages include a bottled drink sold by a caterer or

bar for opening and consumption by a customer on the retailers premises or

whenever served by a caterer and orange juice and milk served at a fast food

establishment; nontaxable beverages include can drinks sold by a convenience storeand a bottle of wine sold by a retailer for "take-out" by the consumer.

Prepared Food and Beverage sales made to the general public or employees

that are paid for, directly or indirectly, by cash, charge card, payroll deduction, meal

ticket, voucher or other means are subject to this tax and must be collected by the

retailer or employer.

Sales derived from Salad Bars (i.e. cut-up fruits and vegetables) sold in

various sized servings, usually by the pound or plates are subject to this tax.

Salad items such as potato salad, cole slaw, macaroni, bean and congealed

salads including chicken salad, etc., and sliced or unsliced meats that the retailer has



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not altered by heating or combining two or more foods (i.e. retailer is merely

repackaging), which are sold in carry-out containers, are not subject to this tax; any

of the forgoing sold as part of a meal, deli tray or otherwise as part of a steamed

table products is subject to this tax.

Whole pies and cakes altered on-site in any way (icing added, decorated, baked, etc.)

are subject to this tax.

In addition to the foregoing, the following rules and regulations apply

to the category or retailers set forth below:

Independent Bakeries:

Food and beverages prepared by an independent bakery are subject to this tax if

baked, decorated or altered in any way on the retailer's site.

Artisan Bakeries (effective January 1, 2009):

Bakery items (bread, rolls, buns, biscuits, bagels, croissants, pastries, donuts,

Danishes, cakes, tortes, pies, tarts, muffins, bars, cookies and tortillas) sold without

eating utensils by an artisan bakery are exempt from the Prepared Food and Beverage

Tax. An "artisan bakery" is a bakery that derives over 80% of its gross receipts from

bakery items and whose annual gross receipts, combined with the gross receipts of all

related persons as defined in NCGS 105-163.010, do not exceed $1,800,000.

Caterers and Food Delivery Services:

Any food or beverages prepared by a caterer or food delivery service (regardless of

the primary place of business or place of food preparation) and served within Wake

County is subject to the Prepared Food and Beverage Tax. All charges are subject to

this tax except gratuities of 20% or less that are separately stated on the invoice and

distributed to service personnel.

Any food or beverage prepared by caterers or food delivery services located within

Wake County to be served outside the County will not be subject to the Prepared

Food and Beverage Tax.

Convenience Stores:

Examples of food and beverages subject to this tax include hot dogs (whether placed

on rotisserie by customer or retailer), brewed coffee, fountain drinks and dip ice

cream, etc. Prepackaged sandwiches prepared by someone other than the retailer are

not subject to this tax.

Temporary Vendors:



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All temporary food and beverage vendors that operate as such, must make a fifty

dollar ($50) cash prepayment at least one (1) week in advance prior to

commencement of business to the Wake County Revenue Department and any

additional tax monies due must be paid with the Prepared Food and Beverage Tax

Return. A refund will be made if determination is made by the Revenue Departmentthat the tax amount due (plus penalties, if any) is less than the original prepayment

amount.

Grocers, Independent Delicatessens and Other Diversified Retail Establishments

Sales of prepared food and beverages in independent delicatessens and in the

delicatessen or similar department of a grocer or other diversified retail establishment

that are subject to taxation under the Ordinance shall be limited to the sale of any

Prepared Food or Beverage that is (i) heated when sold, (ii) sold as a single serving, or

(iii) sold as a steamed table product, (iv) altered in any way (except sliced or

repackaged) or, (v) any two or more foods and or ingredients combined to make a

single item sold as a single serving or sold as a whole packaged item or sold in bulk.

For purposes of the Regulation, a "steamed table product" shall mean any one or more

foods and beverages sold collectively as a meal available for immediate consumption,

including without limitation both heated and cooled foods and beverages.

Deli trays (meat, cheese, fruit, etc.) are subject to the Prepared Food and

Beverage Tax.

Sales derived from Salad Bars (i.e. cut up fruits and vegetables) sold in

various sized servings, usually by the pound or plates are subject to this tax.

Beverages

Akher gurer Sorbot sugarcane liquid jaggery's juice

Akher Rosh Sugarcane juice

Ampanna unripe boiled mango juice

Borhani inspired by Awadhi cuisine; salted curd with mix spices juice

Ghol whisked salted milk

Khejurer Rosh local dates juice

Tea inspired by Chinese and British culinary.

Alcohol

Bhang a wild leaves mix with milk, fruits & jaggery

Gorgora local Hukka mix with betel leaves & wild weeds.

Mohua alcohol formed from wild flowers

Tari alcohol formed from fermented rice

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Bangladesh Tax Rates:

According to the 2011 WTO data, Bangladesh's tariff rates on

commodities are as follows:

Live animals: 7.3864%

Cereals (corn, rice, barley, rye, wheat, etc): 3.5469%

Cocoa: 16.7273%

Coffee and tea: 23.4731%

Sugars (and products): 18.75%Metals: 12.8917%

Mineral Fuels (oil, natural gas, coal, etc): 10.7102%

The tariff on food products in Bangladesh is 22.5939%, according to the 2011

WTO data.

Principles of Taxation

Food, Beverage, 20%

Bangladesh

Income Tax Rate 25%

Bangladesh

Corporate Tax Rate 27.5%

Bangladesh

Sales Tax / VAT Rate 15%

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Food & Beverage on Agricultural overview Dhaka & Bangladesh,

May 2010

Agriculture is the single most important sector of Bangladesh's economy. Over 80%

of the population is engaged in agriculture (70% of the labour force). 57% of the labor

force is engaged in the crop sector which represents about 78% of the value addition

in the agricultural sector and more than 50% of the population depends on agriculture

for their livelihoods. The share of agriculture in GDP has fallen from around 57% in

the 1970s to 20% in the last few years. It is also the source of many of the small

industrial sector's raw materials, such as jute, and accounts for 10% of the value of all

exports. In short, agriculture is one of the driving forces behind economic growth in

Bangladesh and, as a result, increasing food and agriculture production have always

been major concerns of Bangladeshi policy-makers. With the current economic crisis

in the world, food insecurity remains an important issue in Bangladesh.

Bangladesh's major crops include: rice, wheat, sugarcane, potatoes, pulses, oilseeds,

spices, fruit, beef, milk, and poultry. Rice, with an average 70% share of the gross

output value of all crops leads the table. As a result, growth in the agricultural sector

essentially mirrors the performance of rice production, although the share of livestock

and fisheries has increased steadily in recent years to 22% of the value added in

agriculture.

Bangladesh's dependence on food imports and, in particular, food aid throughout the

years has been a cause for concern. Assuming normal weather conditions,

Bangladesh's food grain production in 2010-11 is forecasted to be around 33.3 million

tons (32.3 million tons of rice and 1.0 million tons of wheat), up 2 percent from

current productions. Imports of food grains are predicted to include 400,000 tons of

rice and 2.5 million tons of wheat.

In 2009, agri-food imports in Bangladesh represented approximately $1.10B, 4.7% of

total imports ($20.53B) and absorb about 10% of total export earnings. The import

figure may increase based on country's production year to year. Natural disaster(floods in particular) may cause abnormal increases in imports to the agribusiness

sector. The government legislation for agricultural products changes with the

country's production and import requirements. For example, the government currently

allows tax free import of wheat and pulses due to a significant shortage between

demand and level of local production.

The Bangladesh Agricultural Research Council (BARC) estimates the future

requirement for food grains to be about 45 million tonnes in 2030 compared to 33

million tonnes in 2010-11.



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Total Bangladesh/Canada agricultural trade was valued at over $542 million in 2009,

representing over 86% of Canadian exports to Bangladesh and 38% of total trade

between the two countries. Top Canadian agricultural exports to Bangladesh were

wheat valued at $246 million accounting over 45% of all agri food exports, and pulses

and peas at $242 million or 44% of total agri-food exports. Bangladesh imports largequantities of wheat as it is a staple of the Bangladeshi diet. Consistent demand in this

commodity represents an excellent opportunity for Canadian wheat exporters to

increase sales. Ukraine and Russia together were Bangladesh's largest wheat

suppliers, accounting for over 50% of Bangladesh's wheat imports. Other wheat

suppliers include the US, Australia and Argentina. No. 2 Canada Western Red Spring

wheat is already established in the market; a variety popular due to its price and

quality.

The 2009/10 wheat crop, currently in its vegetative stage, is enjoying favorable

weather conditions and is estimated to produce 1 million tons from 400,000 hectaresof land. Assuming normal weather conditions, wheat production in 2010/11 is

forecast at 1.02 million tons with cultivated area remaining the same. Wheat

consumption in 2009/10 is estimated at 3.4 million tons, up by about 10 percent from

2008/09. Wheat consumption by middle and high income populations in the urban

areas is growing steadily due to changes in food habits and the growth in the

hospitality industry. The growing bakery sector is also contributing to the increase in

wheat consumption. While coarse wheat flour, known as Atta, is sold in bulk in

rural areas, urban millers are marketing packaged refined wheat flour under brand

names.

In 2010 wheat imports are forecasted to be 2.5 million tons consisting of 500,000 tons

public sector imports and 2 million tons private commercial imports. The public

sector procurement in Bangladesh is based on price competition therefore suppliers

from Ukraine enjoy the greatest success in this procurement. In contrast, the private

sector sources much of its wheat from Canada, Australia, Russia and Ukraine. If India

continues their wheat export ban, demand for Canadian wheat will remain strong this

year as well.

Pulses are a very important dietary component of the people of Bangladesh. Themajor types of pulses grown are lathyrus, lentil, chickpeas, mungbean and blackgram.

Pulses are Canada's second largest export to Bangladesh. In 2009, Canada exported

over 0.6 million MT of pulses (125,860 MT Red Lentils and 475,000 MT Yellow

Peas) worth of over $242 million. Consumption of pulses has been growing faster

than local production and has resulted in an increasing amount of pulse crops

imported into the country. Canada is the leading supplier of Red lentils and Yellow

peas to Bangladesh.



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Due to the lack of interest by farmers to grow lentils, planted acres have fallen in the

last five years at an alarming rate. It is expected that the acreage will continue to

shrink further and eventually make Bangladesh a net lentil importing country.

According to the last available statistics, Bangladesh produced 115,000 MT of red

lentils in 2007. The main sources of supply of pulses in to Bangladesh are Australia,

Turkey, Syria, India and Nepal. India has recently banned all their pulse export to

Bangladesh and if this ban continues in the next year, Bangladesh will continue to

import pulses from Canada.

Oilseeds are Canada's third largest export item to Bangladesh. In 2009, Canada

exported over $54 million of oilseeds (canola and master seeds) to Bangladesh.

Ukraine, France and Russia are Canada's main competitor for oilseed in the markethere. Wheat, pulses and oilseeds imports are currently duty free. There is also no

quantitative restriction on imports of these items.

The possibility of natural disasters is a constant threat for Bangladesh. The country is

particularly vulnerable to sudden floods, cyclones and even droughts. Agriculture

growth in 2009/2010 is likely to remain strong due to favorable conditions. However,

vulnerability to natural disasters, a heavy reliance on annual rains and adequate

supplies of fertilizer for crop performance result in severe fluctuations in food grain

production and prices as well as very erratic GDP growth.

Bangladesh has an agriculture-dependent economy with a growing population and one

of the world's lowest land areas per capita. Not surprisingly, the most important issue

in Bangladesh agriculture is to enhance and sustain growth in crop production, the

most pressing problem is therefore the current state of stagnating yields and declining

productivity in a range of food and non-food crops. Projections of food grain supply

and demand are consistent in their conclusions that there is a widening food grain

supply gap.

With negligible scope for area expansion, as most of the arable lands of Bangladeshare already under cultivation, future growth will have to continue to rely on raising

productivity per unit of land. For this reason, continuous efforts are being made

towards developing new improved seed varieties. It is also felt that the agricultural

sector has by no means exploited its full potential for crop production and that there

are various opportunities for substantially increasing cropping intensities. Currently

only 45 percent of the potential irrigated area is covered by modern varieties and,

most important, there are wide gaps between the potential and the realized yields for

all crops in the country.



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Vat:

VAT is a tax you pay when you buy goods and services in the European Union,

including in the UK. If you have to pay VAT on something it will normally be

included in the price you see on the shelf. In some circumstances you might be able to

get a refund of any VAT you have paid, for example if you live outside the EU and

are visiting the UK.

Unless there is anything repugnant in the subject or context, in this Act-

a) "exempted" means goods and services exempted from the added value tax under this

Act;b) "output tax" means the added value tax or, as the case may be, the added value tax

and additional duties of customs imposed under this Act;

c) "inputs" means all kinds of raw materials, services and equipments; but it shall not

include labor, land, buildings, small parts of machines, parts of machines, office

equipment and vehicles;

d) "input tax" means the added value tax payed on articles imported by any registered

person or purchased by such person from any other registered person;

e) "tax period" means a period of one month or any such period as the Government

may, by notification in the official Gazette, specify in this behalf;

f) "taxable goods" means any such goods as are not included in the first schedule;

g) "taxable services" means the services mentioned in the second schedule;

h) "collector" means any collector, added value tax, appointed under section 20;

i) "current account" means the account kept by a registered person with a controller in

the prescribed form, in which shall be stated in writing his purchases, sales, treasury

deposits, payable and remittable added value tax and, if required, other tax;

j) "invoice" means the invoice made out under section 32;

k) "turnover" means the total amount of money received or receivable by any person at

any prescribed time from the supply of taxable goods produced or manufactured by him

or the supply of taxable services;

1. Levy of added value tax:

(1) The added value tax shall be charged and paid at the rate of fifteen per cent on thebasis of the value stated in section 5 on all goods imported into Bangladesh except the

goods mentioned in the First Schedule and on the supply of goods except the goods

mentioned in the said Schedule and on all services mentioned in the Second Schedule.

(2) Notwithstanding anything contained in sub-section (1), the rate of the tax chargedon the following goods or services shall be nil, namely:-



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a) goods or services which have been or are deemed to have been exported from

Bangladesh;

b) food and other provisions supplied for consumption outside Bangladesh on any

conveyance proceeding from Bangladesh to any foreign destination in accordance

with section 24 of the Customs Act, 1969 (IV of 1969), hereinafter referred to as theCustoms Act:

Provided that this sub-section shall not be applicable in the case of the following

goods, namely:-

i) any goods reimported or intended to be reimported into Bangladesh;

ii) any goods which have been cleared for exportation in accordance with section 131

of the Customs Act, but which have not been exported within thirty days after

delivery of the bill of export or within the period extended by the Collector.

(3) the added value tax shall be paid-

a) in the case of imported goods, by the importer;

b) in the case of goods produced or manufactured in Bangladesh, by the supplier;

c) in the case of services, by the supplier of the service.

2. Application of rate of tax:

(1) In the case of supply of taxable goods or taxable services, the rate of added value

tax shall be the rate applicable on such goods and services at the time mentioned in

sub-section (2) or, as the case may be, sub-section (3) of section 6.

(2) In the case of importation of taxable goods, the added value tax shall,-

a) in the case of clearance of such goods for home-consumption, be charged at the rate

in force on the date on which the bill of entry is presented under section 79 of the

Customs Act:

Provided that, where the bill of entry is presented before the arrival of the conveyance

on which the goods are imported, the date concerned shall be the date of delivery of

the manifest following next to the arrival of the said conveyance; and

b) in the case of clearance of such goods from a warehouse under section 104 of the

Customs Act, be charged at the rate in force on the date on which the said goods are

cleared from the warehouse.

3. Determination of value for charge of added value tax:

(1) In the case of importation of goods, the value on which added value tax is to be

paid shall be determined by adding the import duty and other duties, including

additional duties of customs, and taxes (if any), excluding advance income tax, to the

value chargeable with import duty under section 25 of the Customs Act.

(2) Subject to the provision of sub-section (3), in the case of supply of goods, the

value on which added value tax is to be paid shall be the price receivable from the

buyer by the producer or manufacturer of the said goods, in which shall be included

all the expenditures of the producer or manufacturer and, where applicable, all the



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duties and taxes including commissions, charges and additional duties of customs

(excepting advance income tax) paid by him.

(3) The Government may, by notification in the official Gazette, specify the goods in

respect of which added value tax shall be charged on the basis of the retail price and

in the case of charging added value tax the retail price of such goods shall be theprice, which shall include all kinds of expenditures, commissions, charges, customs

duties and taxes, determined by the producers or manufacturers on consent of the

officer concerned, and such goods shall be marked with a special brand or sign and

shall be sold to the average consumers at such price (which shall be printed in a

distinct, noticeable and irremovable manner on the surface of, or on each package,

bag or receptable containing, such goods).

(4) In the case of supply of services, added value tax shall be charged on the total

receipts:

Provided that, in the case of any ordered service, the Board may by rules charge the

tax on the basis of the real added value.

(5) In the case of goods on which a trade discount has been allowed, the added value

tax shall be chargeable on the price at which they are supplied after the allowance of

the trade discount:

Provided that the price at which such goods are supplied after the allowance of the

trade discount shall be mentioned in the invoice and that the amount of the trade

discount allowed shall be consistent with the ordinary business practice.

4. Time and manner of payment:

(1) The added value tax on imported goods shall be paid in the same manner and at

the same time as the import customs in accordance with the Customs Act and the

rules made thereunder as if it were an import tax under the said Act; and the rules,

orders or directions passed or issued under the said Act shall, subject to the rules,

orders or directions, if any, passed or issued under this Act for the purpose of

regulating any matters relating to such added value tax or, as the case may be,

additional duties of customs, be, as far as is possible, applicable to the added value tax

or, as the case may be, additional duties of customs in the same manner as they are

applicable to the import tax.

(2) The added value tax on goods produced or manufactured by any registered or

registrable person for the purpose of conducting or furthering a business shall be paid

at the time of such of the following operations as occurs first-

a) when the goods are delivered or supplied;

b) when the invoice regarding the supply of the goods is made out;

c) when any goods are used privately or are supplied for any other use;

d) when the price is received in part or in full.

(3) The added value tax on services supplied by any registered or registrable person in

the course of conducting or furthering a business shall be paid at the time of such of

the following operations as occurs first-



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a) when the service is supplied;

b) when the invoice relating to the supply of the service is made out;

c) when the price is received in part or in full.

(4) Notwithstanding anything contained in this section, the Board may, in such

manner as may be prescribed by rules, determine the time at which and the manner inwhich added value tax or, as the case may be, additional duties of customs is to be

paid in respect of any goods, classes of goods and services.

(5) Added value tax and additional duties of customs on the supply of goods produced

or manufactured in Bangladesh and added value tax paid on services shall, in such

manner as may be prescribed by rules, be paid from the current account or stated in

the return, respectively.

5. Levy of additional duties of customs:

(1) There shall be paid additional duties of customs at the rate stated in the Third

Schedule on such luxury articles, unnecessary and socially undesired goods and

services stated in the said Schedule as are supplied in or imported into Bangladesh.

(2) For the purpose of charging additional duties of customs, the value of goods and

services-

a) shall, in the case of imported goods, be the value on which is levied import tax

under section 25 of the Customs Act for the purpose of levying import tax;b) shall, in the case of goods produced or manufactured in Bangladesh, be the

consideration, which shall not include the added value tax and additional duties of

customs, received or receivable by the producer or manufactorer from the buyer of

such goods;

(3) Additional duties of customs are to be paid at the same time and in the same

manner as is to be paid added value tax.

6. Turnover tax:

(1) Every producer or manufacturer of taxable goods or supplier of taxable services who

is not subject to registration under section 15 shall pay a turnover tax at the rate of two

per cent of his annual turnover.

(2) The highest amount of turnover tax to be paid on turnover, the schedule of payers of

turnover tax, the assessment of the turnover tax to be paid and the manner of its

realization, appeals against assessments, offences and punishments, the detention,

adjudication, confiscation of goods and imposition of fines and all appeals in respect

thereof, the powers of the officers concerned, audits, the realization of underpaid or

outstanding tax, the refinement of erroneously paid or overpaid tax and other matters

concerned shall be prescribed by rules.



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7. Deduction of tax:

(1) Suppliers of taxable goods or suppliers of taxable services may, subject to the

provision of sub-section (2), credit input tax against the output tax payable on the

supply of goods produced or manufactured by them or on services rendered by them:Provided that, in the case of expensive materials, the input tax shall be deducted in

such manner as may be prescribed by rules.

(2) No supplier of taxable goods or taxable services shall be eligible for deduction of

input tax unless he holds an invoice proving that he has paid the added value tax

payable on equipments or a bill of entry proving that he has paid the added value tax

applicable on importations; and if any person makes an deduction without (such)

proof, the officer concerned may annul such deduction and direct such adjustment in

the current account or the return as may be required.

(3) Any supplier of taxable goods or taxable services who also supplies goods or

services on which no added value tax is to be charged, may, in such manner as may be

determined by rules, credit such proportion of the input tax against the output tax as is

attributable to the inputs used in the production or manufacture of goods, or in

services, on which added value tax is to be charged.

8. Exemption:

(1) The Government may, by notification in the official Gazette, subject to limits and

conditions mentioned therein, exempt the import or supply of any goods or classes of

goods or any services supplied from added value tax or, as the case may be, additionalduties of customs chargeable under this Act.

(2) The Board may, by special order, on statement of the reasons in each case, exempt

the import or supply of any taxable goods or any taxable services supplied from added

value tax or, as the case may be, additional duties of customs chargeable under this

Act.

9. Appointment of added value tax officers:

For the purpose of giving effect to this Act and rules, the Board may, by notification

in the official Gazette, appoint for any area mentioned in the notification any person

as-

a) Collector, Added Value Tax;

b) Collector (Appeal), Added Value Tax;

c) Additional Collector, Added Value Tax;

d) Joint-Collector, Added Value Tax;

e) Sub-Collector, Added Value Tax;

f) Assistant Collector, Added Value Tax;

g) Superintendent, Added Value Tax; orh) added value tax officer of any other rank.



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Food & Beverage:

1 General:

1.1 This Information Leaflet sets out the rates of VAT on supplies of food andbeverage.

1.2 Most food and beverage sold by retail shops is chargeable to VAT at the zero-

rate. This includes most basic foodstuffs, for example, bread, butter, tea, sugar,

meat, milk, vegetables etc. Certain items of food and beverage are specifically

excluded from the scope of the zero-rate. These are taxable at

the standard and reduced rates of VAT. Food liable at the reduced rate includes flour

or egg based bakery products e.g. cakes, crackers, certain wafers and biscuits. Food

and beverage liable at the standard rate includes sweets, chocolates, confectionery,

crisps, ice-cream and soft drinks.In addition food and beverage liable at the standard rate includes:-

frozen desserts, frozen yogurts and similar frozen products, and prepared mixes and

powders for making any such product or similar products;

uncooked confectionery;

savory snack products made from cereal or grain, fried bread segments, pork scratching,

and similar products and

Soft drinks and alcohol.

2 Food and beverage supplied in the course of operating a catering business

(including Vending Machines, Take-Always, and Supermarkets):

2.1 Food and beverage normally chargeable to VAT at the zero-rate becomes liable

to VAT at the reduced rate when supplied in the course of operating hotels,

restaurants, cafes, canteens, public houses, caterers and other similar businesses or

by means of vending machines.

2.2 Food and beverage normally liable to VAT at the standard rate becomes liable

at the reduced rate when supplied in the course of provision of a meal by any of

the specified classes of business (see preceding paragraph) excluding alcohol,

soft drinks and vegetable juice.

2.3 Alcohol, soft drinks, bottled waters and health drinks are liable to VAT at the

standard rate in all circumstances.

2.4 All hot take-away food is liable at the reduced rate irrespective of the rate which

would apply if it were supplied otherwise

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2.5 Vending machine sales ofzero-rated food and beverage are liable at the

reduced rate. Food and beverage other than zero-rated food and beverage sold by

means of a vending machine are taxable at the appropriate rates e.g. cakes the

reduced rate, confectionary the standard rate.

2.6 Zero-rated food and beverage remains free of VAT so long as it is not suppliedby means of a vending machine or in the course of operating any of the specified

classes of business

2.7 Cold take-away food and beverage supplied by supermarkets, etc. are taxable at

the zero, reduced or standard rate, as appropriate

3 Summary:

The rates of VAT appropriate to the supply of food and beverage through the

various outlets are set out below. A tabular summary is attached.

4 Retail shops including supermarkets:

4.1 Food and beverage supplied by retail shops is liable at the zero, reduced or

standard rate as appropriate. The supply of freshly baked bread which may have

retained some heat after baking but which has not been maintained heated and which

is supplied in the course of a grocery business is liable at the rate appropriate to the

same food when cold. However, hot food, including hot cooked chickens is liable to

VAT at the reduced rate.

4.2 Supermarkets which operate restaurants or cafs are generally regarded ascarrying on a separate restaurant business. Food and beverage supplied in the course

of the restaurant business is normally liable at the reduced rate. This includes fruit

juices, ice cream, and confectionery supplied in the course of the provision of a meal

(but the supply of such foods for taking away is liable at the standard rate). As

already stated alcohol, bottled waters and soft drinks other than fruit juices are

always liable at the standard rate.

4.3 Food and beverage sold by means of vending machines is liable at the reduced

rate or standard rate, as appropriate. The zero-rate never applies and food and

beverage which might otherwise be zero-rated is liable at the reduced rate when soldby means of vending machines. The sale of zero rated food and beverage by means

of a vending machine is considered to be a service for VAT purposes.

5 Hotels, Restaurants, Cafs, Canteens, Public Houses, Caterers and Similar

Businesses:

5.1 Food and beverage, including fruit juices, supplied with a meal, but excluding

alcohol, bottled waters, soft drinks and vegetable juice is liable at the reduced

rate. This is so even if the food or drink would have been liable at the standard rate

if supplied otherwise (for example, fruit juice or ice cream, liable at the standard



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rate, is liable at the reduced rate when supplied in the course of the provision of a

meal).

5.2 Alcohol, bottled waters and soft drinks are liable at the standard rate in all

circumstances.

5.3 Staff meals, when taxable, are liable at the reduced rate.

5.4 Receipts from admissions to dinner dances are liable at the standard rate

including the dinner element in the charge. If there are separate charges for the

dinner and the dance and payment of the charge for dinner is not a condition of

admission to the dance the dinner charge is liable at the reduced rate and the charge

for admission to the dance is liable at the standard rate

6 Take-aways: Traders whose business consists entirely of take-aways:

6.1 Food and beverage supplied will be taxable as follows:

Hot take-away food and beverage the reduced rate.

Cold take-away food and beverage zero %. (E.g. sandwich/cold milk) or the reduced rate.

(E.g. cold apple tart) or standard (e.g. chocolate bar), as appropriate.

Alcohol, bottled waters and soft drinks the standard rate.

6.2 If cold take-away zero-rated food or drink is supplied with hot take-away food

for an inclusive price (for example, coleslaw with hot chicken) the entire charge isliable at the reduced rate. Soft drinks supplied with hot take-away food for an

inclusive price are liable at the standard rate. It will be open to the proprietor of a

take-away business to charge separately for the different constituents of a take-away

meal and to pay tax accordingly.

6.3 The term hot take-away food and beverage should be understood as including

cooked food which is supplied while hot for the purpose of consumption while hot,

that is, at a temperature above the ambient air temperature. It includes items such as

burgers which consist of hot meat enclosed in a cold bun, cooked chickens and

similar food. The term does not include freshly baked bread which may be hot at thetime of purchase.

7 Take-aways: Traders whose business does not consist entirely of take-aways:

Although, strictly, zero-rated food supplied in the course of operating a hotel,

restaurant, public house, canteen or similar business is liable at the reduced rate,

application may be made to the Revenue District responsible for your tax affairs to

have the take-away activities treated concessional as a separate activity and, to the

extent that the take-aways consist of zero-rated food, relieved accordingly.



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8 Waste foods:

8.1 Waste food of all kinds which is sold as animal food may be regarded as

qualifying for the zero-rate of VAT.

8.2. Waste oils sold for reprocessing are liable to VAT at the standard rate.

9 Location Catering:

This service is liable at the reduced rate but alcohol, bottled waters and soft drinks

supplied are liable at the standard rate.

10 Catering on off-shore oil rigs outside territorial waters and on foreign-going

ships and aircraft:

The zero-rate effectively applies.

11 Catering in schools and hospitals:

Catering services are exempt from VAT where supplied

a. to patients of a hospital or nursing home in the hospital or nursing home; and

b. to students of a school in the school.

Further information:

Enquiries regarding any issue contained in this Information Leaflet should beaddressed to the Revenue District responsible for the taxpayer's affairs.

Food and Beverage Regarding Tax:

Guidelines for the tax on prepared food and beverages:

The Prepared Food and Beverage Tax (Meals Tax) was established by Ordinance No.

28631 and was adopted by the City Council on May 18, 1987. In the case of any

conflict between these guidelines and the provisions of the City Code (1979), as

amended, or other ordinances, the Code or ordinance will prevail.

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Food and beverage: Rates of VAT:

Food and beverage: Rates of VAT

Type of Food or

Beverage

How supplied

With meals in

hotels,

restaurants,

canteens, pubs

etc.

By hotel

other than

with meals

By means of

vending

machines

By retail

stores(see

note)

By 'take-

away' only

business

All food and

beverage except

alcohol and soft

drinks

reduced reduced,

standard

reduced,

standard

0%,

reduced,

standard

0%,

reduced,

standard

Zero-rated food reduced reduced reduced 0% (cold),

reduced

(hot)

0% (cold),

reduced

(hot)

Cakes, biscuits

(other than

chocolate covered

biscuits)

reduced reduced reduced reduced reduced

Chocolates,confectionary,

chocolate biscuits,

crisps, ice cream

reduced standard standard standard standard

Alcohol, bottled

waters and soft

drinks including

health drinks

standard standard standard standard standard

Fruit Juices

including freshlysqueezed juices

reduced standard standard standard standard

'Take-aways' - hot reduced reduced reduced

'Take-aways' - cold 0%,

reduced,

standard

0%,

reduced,

standard

0%,

reduced,

standard

'Take-aways' - hot

and cold for

inclusive price

reduced,

standard

reduced,

standard

reduced,

standard



23/35

Food and beverage: Rates of VAT

Type of Food or

Beverage

How supplied

With meals in

hotels,

restaurants,

canteens, pubs

etc.

By hotel

other than

with meals

By means of

vending

machines

By retail

stores(see

note)

By 'take-

away' only

business

Chips (cooked) reduced reduced reduced reduced

Dinner Dances standard

Service Charges reduced

Note: Retail Stores including supermarkets

This information leaflet which sets out the current practice at the date of its issue is

intended for guidance only and does not purport to be a definitive legal

interpretation of the provisions of the Value-Added Tax Act 1972.

VAT Rates (Current and Historic):

Current and Historic VAT Rates

Date

Effective

From

Standard

Rate (%)

Reduced

Rate (%)

Second

Reduced

Rate (%)

Farmers' flat-

rate addition

(%)

Livestock (%)

1 January

2012

23 13.5 9 5.2 4.8

1 July 2011 21 13.5 9 5.2 4.8

1 January

2010

21 13.5 5.2 4.8

1 December2008 21.5 13.5 5.2 4.8

1 January

2007

21 13.5 5.2 4.8

1 January

2005

21 13.5 4.8 4.8

1 January

2004

21 13.5 4.4 4.4

1 January2003

21 13.5 4.3 4.3



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Date

Effective

From

Standard

Rate (%)

Reduced

Rate (%)

Second

Reduced

Rate (%)

Farmers' flat-

rate addition

(%)

Livestock (%)

1 March

2002

21 12.5 4.3 4.3

1 January

2001

20 12.5 4.3 4.3

1 March

2000

21 12.5 4.2 4.2

1 March

1999

21 12.5 4.0 4.0

1 March

1998

21 12.5 3.6 3.6

1 March

1997

21 12.5 3.3 3.3

1 March

1996

21 12.5 2.8 2.8

1 March

1993

21 12.5 2.5 2.5

1 March

1992

21 16 12.5 2.7 2.7

1 March

1991

21 12.5 2.3 2.3

1 March

1990

23 10 2.3 2.3

1 March

1989

25 10 5 2 2

1 March

1988

25 10 5 1.4 1.4

1 May 1987 25 10 1.7 1.7

1 March

1986

25 10 2.4 2.4

1 March

1985

23 10 2.2 2.2

1 May 1984 35 23 5,8,18 2 2



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Date

Effective

From

Standard

Rate (%)

Reduced

Rate (%)

Second

Reduced

Rate (%)

Farmers' flat-

rate addition

(%)

Livestock (%)

1 July 1983 35 23 5,18 2 2

1 May 1983 35 23 5,18 2.3 2.3

1 March

1983

35 23 5,18 2.3 2.3

1 May 1982 30 18 1.8 1.8

1

September

1981

25 15 1.5 1.5

1 May 1980 25 10 1 1

1 March

1979

20 10 1 1

1 March

1976

20 10 Discontinued Discontinued

1 March

1975

19.5 6.75 Suspended in

relation to live

cattle

Suspended in

relation to live

cattle

3

September

1973

19.5 6.75 1 1

1

November

1972

16.37 5.26 1 1

Abolished/Repealed VAT Rates:

Increased Rates (Discontinued with effect from 1 March 1979)

Effective

From

Applied to radios, TV sets, record

players and records

Applied to passenger motor

vehicles

1 March 1976 40 35

1 March 1975 36.75 36.75



26/35

Increased Rates (Discontinued with effect from 1 March 1979)

Effective

From

Applied to radios, TV sets, record

players and records

Applied to passenger motor

vehicles

3 September

1973

36.75 36.75

1 November

1972

30.26 30.26

The standard rate applied to these goods from 1 March 1979

Special Rates:

A special rate of 11.11% applied to dances from 1 November 1972 was abolished on

1 March 1976.

A special rate of 10% which continued in relation to domestic dwelling development

contracts entered into before 25 February 1993 was repealed on 23 November 2010.

What is the prepared food and beverage tax?

Effective August 1, 1987, a tax was levied on the purchase of all prepared food and

beverages served in and from these places of business:

Restaurants

Eating Houses

Dining Rooms

Eateries

Grills

Bowling Alleys

Coffee Shops

Drug Stores

Cafeterias

Lunch Wagons/Lunch Trucks

Cafes

Pushcarts

Snack Bars

Carry-Out

Confectioneries

Food Concessions

Bakeries

Motels

Hotels

Doughnut Shops

GroceryStore

Delicatessens

Carnivals

Ice Cream Stores Dinner Theaters

Movie Theaters

Festivals

Bed & Breakfast Inns

Private Clubs

Who collects the prepared food and beverage tax?

All businesses that come under the definition of restaurant or caterer and that are

listed above must collect this tax from their customers when the charge for the food



27/35

and beverages is paid. The tax is to be paid whether the customer pays by cash or by

credit card. The seller adds the tax to the gross amount and collects the total from the

customer.

SELLERS MUST NOT in any way suggest or indicate that they will relieve the

customer of payment of part or all of this tax. The customer alone must pay the totaltax amount due.

Are tips taxable?

In the past, tips were taxable when added to the price of food or automatically added

onto the bill. An amendment to the Code of Virginia effective July 1, 2006 states that

gratuity, service charges or tips that are mandatory or automatically added to the price

of a meal by the seller are not subject to the Meals Tax unless the service charges or

tips are in excess of 20%. This exemption only applies if the service charge added to

the price of the meal does not exceed 20%. Those service charges or tips that are 20%or more and added to the price of the meal remain subject to the Meals Tax.

Monthly remittance:

The seller must complete and sign a monthly report indicating the amount of the food

and beverage charges collected and the tax required to be reported. All forms will be

provided at NO CHARGE with a return envelope. If the forms are delivered in

person, they must be received by the City Treasurer's Office on or before the 20th of

the month. If the forms are mailed, they must be postmarked on or before the 20th of

the month. Currently, coupon booklets are provided to sellers for reporting andremittance.In either case, if the 20th of the month falls on a weekend or holiday, the

next business day becomes the due date.

Records retention:

The seller must retain for three years auditable records of:

1. Gross Receipts for all food and beverages, records of food and beverage purchases,

records of spoilage, waste or any other purchases to support the food and beverage

operation.

2. Amount charged the buyer for each purchase.

3. Date of each sale, deposit records, cash register tapes, voids, daily worksheets, etc.

4. The amount of tax collected from each sale.

5. Exempt sales.

Closing of a business:

If you should close your business or that part of your business that is applicable to thistax, you must IMMEDIATELY complete your tax remittance and pay all taxes due.

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You must also complete the reverse side of the remittance form and list the New

Owner's Name and Address, if known and applicable.

Catering businesses located outside of the city of Roanoke:

On February 4, 1991, Ordinance 30394-20491 amended the Code of the City of

Roanoke to provide that the situs for meals taxation is the locality in which the sale is

made. Section 32-284 states that "the tax is levied and imposed on the purchaser of all

food sold in the city . . . or by a caterer regardless of place of delivery or

consumption." Therefore, catering businesses located inside the City of Roanoke must

collect the tax and remit it to the City even if the food is delivered to a destination

outside of the City of Roanoke. However, when mobile trucks, booths or caterers with

businesses located outside the City of Roanoke set up to sell or prepare food in the

City of Roanoke, they are liable to the City for the tax.

Catering businesses located outside of the City of Roanoke are not required to collect

and to remit the tax to the City unless they establish a point of sale within the City

such as a mobile truck, booth, pushcart, etc.. or they prepare and cook food within the

City. The Prepared Food and Beverage Tax does not apply to catering

services such as rental of tablecloths, napkins, flower arrangements, candles, etc.

Exemptions:

Snack Foods are not taxable by this Ordinance.The term "snack" includes items such as:

Unopened bottled or canned drinks

Chewing Gum

Candy

Popcorn (packaged for home consumption)

Peanuts and other nuts

Unopened bags of prepackaged or factory sealed chips, popcorn etc

And other items of a similar nature consumed as a snack.

The following purchases of food are not subject to this tax:

Foods furnished by restaurants to employees as part of their compensation when

no charge is made to the employee.

Foods sold by non-profit day care centers, public or private elementary or

secondary schools or foods sold by any college or university to its students or

employees.

Foods for use or consumption by the Commonwealth, any political subdivision ofthe Commonwealth, or the United States.



29/35

Foods furnished by a hospital, medical clinic, convalescent home, nursing home,

home for the aged, infirm or handicapped or other extended care facility to

residents thereof.

Foods furnished by non-profit charitable organizations to the elderly, infirm,

handicapped, or needy persons in their homes or at central locations. Foods sold by non-profit, educational, charitable or benevolent organizations on

an occasional basis.

Any other sale of food ordered exempt by the Virginia Retail Sales and Use Tax

Act.

Penalties:

If the tax remittance and report is not received in the City Treasurer's Office a 10%

penalty will be assessed if the failure is not for more than 30 days and a 20% penalty

will be assessed if the failure is not for more than 60 days. The penalty will be notexceeding 25% and the minimum penalty is $2. The penalty for filing a false or

fraudulent report is fifty percent (50%) of the amount of tax due.

Failure to comply with any provision of the Tax on Prepared Food and Beverages

Ordinance constitutes a Class 1 misdemeanor. Agreements to pay delinquent taxes in

installments do not relieve you of criminal liability until the taxes and penalties are

paid in full.

Examples of items not taxable:

Unopened bottle, can or six-pack of beer or bottled wine purchased for off

premises consumption.

Chewing gum purchased at a restaurant.

Church supper prepared by a church on an occasional basis.

Cold unopened drink from a case at a convenience store.

Food provided to a patient in a hospital or nursing home

Food purchased as part of a rescue squad or church fund-raising effort on an

occasional basis.

Frozen TV dinner or grocery item purchased in a grocery store.

Pre-sealed, pre-packaged sweet roll purchased from a snack bar or a cafeteria. For

example, "Tasty Kake" cinnamon bun, "Little Debbie" brownies or "Rainbow"

honey buns.

http://www.roanokeva.gov/85256a8d0062af37/CurrentBaseLink/N2535KWE123JEASENhttp://www.roanokeva.gov/85256a8d0062af37/CurrentBaseLink/N2535KWE123JEASEN


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Peanuts or other nuts from a peanut or candy shop.

Candy from a movie theater.

Vending machine sales.

Examples of taxable items:

Baked, fried, or barbecued turkey, chicken, seafood or ribs from a restaurant,

delicatessen or grocery store delicatessen for on or off premises consumption.

Beer, wine or mixed drinks at any bar, tavern, or restaurant.

Beer, wine or mixed drinks delivered to hotel or motel rooms or any "roomservice" food.

A church supper provided by a caterer.

Cup of coffee.

Doughnuts served and eaten on premise (non packaged).

Food and beverages at a country club or private club.

Food and beverage at a company or hospital cafeteria.

Fountain drink from a fast food chain or movie theater.

Hot dog from a convenience store or pushcart.

Exemptions; limits on application:

A. The tax imposed under this article shall not be levied on the following items when

served exclusively for off-premises consumption:(1) Factory-prepackaged candy, gum, nuts and other items of essentially the same

nature.

(2) Factory-prepackaged donuts, ice cream, crackers, nabs, chips, cookies and items

of essentially the same nature.

(3) Food sold in bulk. For the purposes of this provision, a "bulk sale" shall mean the

sale of any item that would exceed the normal, customary and usual portion sold for

on-premises consumption (e.g., a whole cake, a gallon of ice cream); a bulk sale shall

not include any food or beverage that is catered or delivered by a food establishment

for off-premises consumption.

(4) Alcoholic and nonalcoholic beverages sold in factory-sealed containers.

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B. A grocery store, supermarket or convenience store shall not be subject to the tax

except for any portion or section therein designated as a delicatessen or designated for

the sale of prepared food and beverages.

C. The tax imposed hereunder shall not be levied on the following purchases of food

and beverages:(1) Food and beverages furnished by food establishments to employees as part of their

compensation when no charge is made to the employee.

(2) Food and beverages sold by day-care centers, public or private elementary or

secondary schools or food sold by any college or university to its students or

employees.

(3) Food and beverages for use or consumption and which are paid for directly by the

Commonwealth, any political subdivision of the Commonwealth or the United States.

(4) Food and beverages furnished by a hospital, medical clinic, convalescent home,

nursing home, home for the aged, infirm, handicapped, battered women, narcotic

addicts or alcoholics or other extended care facility to patients or residents thereof.

Food and beverage Tax Calculator:

Figuring out food and beverage tax are actually very simple if you know how. Most

businesses use some form of food and beverage tax calculator as food and beverage

tax are required to be charged to customers for most types of goods and in most states.

These calculators are usually pre-programmed with the food and beverage tax

percentage to enable the food and beverage tax to be calculated with the simple push

of a button. The food and beverage tax percentage, as well as which goods areactually taxed, varies from state to state.

Some states have food and beverage tax on food; others dont tax food but they do tax

everything else. Prices that you see at stores may or may not already include the food

and beverage tax. For instance, if you buy clothing, the food and beverage tax are

generally not included; however, if you buy gasoline, you probably know that the

food and beverage tax are already added into the price listed on the pump.

Calculating Food and beverage Tax:

Food and beverage tax are calculated by taking the total price of the product and

multiplying by the food and beverage tax percentage. You then take the results and

add it to the product price to get the total price for the product. For example, consider

a product that costs $1.00 and is purchased in a state with 6% food and beverage tax.

You would take $1.00 and multiply by 0.06 to come up with $0.06. You would then

would add the $0.06 to the $1.00, which would be $1.06, which would be the total

price for the product.

This site provides an online food and beverage tax calculator that can be used in twodifferent ways. On the first tab, you can enter the total price of you purchase, and then

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select which state you are purchasing those goods in. The calculator will inform you

of the food and beverage tax based on the food and beverage tax percentage for that

state. On the second tab of the food and beverage tax calculator, you can manually

enter the food and beverage tax percentage to come up with the correct results. Both

tabs use the same formula, but if you do not know what the food and beverage taxpercentage is for your state, you can simply select the state you live in to

automatically calculate the food and beverage tax.

Food and beverage Tax Differences With Different States:

It is very important that you select the correct state because every state has a different

food and beverage tax percentage. Some states tax everything that you buy. Others

dont tax food. Some states require merchants to collect food and beverage tax for

online food and beverage if they have part of their company or an affiliate in that

state. The items that are taxed vary widely. For instance, Michigan food and beveragetax are 6%. They do not tax food that you buy in a grocery store. But they do tax food

from a restaurant, such as McDonalds or Pizza Hut. If you are renting a hotel room,

you are also charged food and beverage tax.

Connecticut also charges a 6% food and beverage tax, however the Connecticut law

reads that food products for human consumption are exempt from food and beverage

tax, but there are exceptions to this. Beer, wine and liquor are taxed. Beverages, such

as soft drinks, that are dispensed from a fountain or a bar are also taxable. Items sold

in vending machines are exempt from food and beverage tax. Anything else that is notedible has food and beverage tax on it. Some candy is also taxable. There is also tax

on meals that you eat at restaurants or any prepared meal. It depends on what state

you are in as to how much food and beverage tax are applied and what it is applied to.

If you are selling things or buying things in several different states, you should be

aware of the food and beverage tax laws.

Cash registers can generally be programmed to account for these discrepancies in the

food and beverage tax law. Some cash registers require you to press one subtotal item

if the good is taxable and another if the good is not. Some newer systems know if

food and beverage tax needs to be charged or not based on the SKU of the item. It isimportant to know the individual food and beverage tax calculator laws for the state

you live or work in. States change the amount of food and beverage tax there is on

items from time to time, so it is important to keep up to date. Try our Food and

beverage Tax Calculator today!

Tax Liability Calculation:

Examples:

Total income of X Company is 20, 50,500 taka.



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X companys tax liability is given below:

Mr. X

Income Year: 2010-2011Assessment Year: 2011-2012

Calculation of Tax liability

Step Taka Rate Amount

1st 1,80,000 0% 0

Next 3,00,000 10% 30,000

Next 4,00,000 15% 60,000

Next 3,00,000 20% 60,000

Rest 8,70,500 25% 2,17,625

3,67,625

Findings:

Positive sight:

This system gain the property from person to person on legal way;

It provides legal documents on buy and sales ;

When it maintain the level of people living it maintain the society living scale

;

Increase the country welfare fund;

It helps the business sector to concern about food and beverage;

Maintain the rules and regulatory in food ad beverage business sector;



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Negative sight:

Tax requirement on food and beverage are not available;

Less awareness for low publicity;

Remain backward than other country;

Use of website are poor;

Govt. are unconcern to providing information;

Advantages:

Rise govt. fund

Increase well monitoring to all sectors by govt.

Increase the bindings with govt. and business holder

Capital use for public welfare

Disadvantages:

Avoid the tax fee for high rate

Hidden tax or indirect tax are effect the general people

Intentionally people want to avoid tax.

Conclusion:

The food and beverage industry includes a vast amount of venues. It is a very diverseindustry consisting of commercial operations and non-commercial operations.

Commercial operations can be classified as either part of the restricted market or the

general market. Examples of the restricted market would be some institutional

employee catering, or private clubs. These may also fall under the subsidized category

of either private or public ownership which may include employee catering or

institutional catering. These foodservice operations financial goal does not involve

generating profit from the sales of food and beverage product, and may also be called

institutional foodservice.

References:



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Annual report of tax policy on food and beverage in Bangladesh.

Bangladeshi Cuisine - Shawkat Osman - Google Boeken.

Bangladesh - Mariam Whyte, Yong Jui Lin - Google Books

Bangladesh - Stuart Butler - Google Books.

http://en.wikipedia.org/wiki/Food_and_Beverage . http://jessicamudditt.com/2011/07/10/special-report-supermarket-sob-story

http://www.ai.org/dor/3330.htm

http://www.americasfoodandbeverage.com

http://www.bls.gov/ooh/food-preparation-and-serving/food-and-beverage-

serving-and-related-

http://www.fsg.org/Portals/0/Uploads/Documents/PDF/Role_of_Food_and_B

everage_Sector_in_Eco

http://www.google.com

http://www.guardian.co.uk/money/2012/may/29/vat-what-how-much-why

http://www.irs.gov/irm/part4/irm_04-023-007.html

http://www.mass.gov/dor/individuals/taxpayer-help-and-resources/tax-

guides/meals-tax-guide.html

http://www.reuters.com/article/2012/10/19/us-obesity-who-industry-

idUSBRE89I0K62012http://www.wisegeek.com/what-does-a-food-and-

beverage-director-do.htm

http://www.thefreedictionary.com/tax

http://www.wakegov.com/tax/business/preparedfood/pages/default.aspx 1019

http://www2.dupont.com/food-beverage/en-us/fb/index.htm

Multicultural Handbook of Food, Nutrition and Dietetics - Google Books

Tax policy on food and beverage in Bangladesh.

Website: annual report of tax policy on food and beverage.

World and Its Peoples: Eastern and Southern Asia - Marshall Cavendish

Corporation - Google Books
http://books.google.com/books?id=XHNRPgAACAAJhttp://books.google.com/books?id=RFywfJunO1wC&pg=PA123&lpg=PA123&dq=Bangladeshi+cuisine&source=bl&ots=n6cb1GStoU&sig=xvd-EccnBml92J6h_qd3KRbXQe8&hl=en&sa=X&ei=CQw5UJG2FM3qiQK4yoGwDw&ved=0CC8Q6AEwADgK#v=onepage&q=Bangladeshi%20cuisine&f=falsehttp://books.google.com/books?id=pxcRDuFIYUsC&pg=PA40&lpg=PA40&dq=Bangladeshi+cuisine&source=bl&ots=DdE1OSAdcQ&sig=FYmkYbHzTDlAQ-dki4cM2Ifrn-M&hl=en&sa=X&ei=Qws5UImqCsWJiwKk1YDICA&ved=0CEkQ6AEwBQ#v=onepage&q=Bangladeshi%20cuisine&f=falsehttp://en.wikipedia.org/wiki/Food_and_Beveragehttp://www.ai.org/dor/3330.htmhttp://www.americasfoodandbeverage.com/http://www.bls.gov/ooh/food-preparation-and-serving/food-and-beverage-serving-and-related-http://www.bls.gov/ooh/food-preparation-and-serving/food-and-beverage-serving-and-related-http://www.fsg.org/Portals/0/Uploads/Documents/PDF/Role_of_Food_and_Beverage_Sector_in_Ecohttp://www.fsg.org/Portals/0/Uploads/Documents/PDF/Role_of_Food_and_Beverage_Sector_in_Ecohttp://www.google.com/http://www.guardian.co.uk/money/2012/may/29/vat-what-how-much-whyhttp://www.irs.gov/irm/part4/irm_04-023-007.htmlhttp://www.mass.gov/dor/individuals/taxpayer-help-and-resources/tax-guides/meals-tax-guide.htmlhttp://www.mass.gov/dor/individuals/taxpayer-help-and-resources/tax-guides/meals-tax-guide.htmlhttp://www.wisegeek.com/what-does-a-food-and-beverage-director-do.htmhttp://www.wisegeek.com/what-does-a-food-and-beverage-director-do.htmhttp://www.thefreedictionary.com/taxhttp://www.wakegov.com/tax/business/preparedfood/pages/default.aspxhttp://www.reuters.com/article/2012/10/19/us-obesity-who-industry-idUSBRE89I0K620121019http://www2.dupont.com/food-beverage/en-us/fb/index.htmhttp://books.google.com/books?id=b00t9YCAzagC&pg=PA74&lpg=PA74&dq=Bangladeshi+cuisine&source=bl&ots=fwlZxR3dYY&sig=H13MAe_SSjCkc4-nVjhogmjb-OI&hl=en&sa=X&ei=Qws5UImqCsWJiwKk1YDICA&ved=0CE4Q6AEwBg#v=onepage&q=Bangladeshi%20cuisine&f=falsehttp://books.google.com/books?id=5ZBaVhmRvCkC&pg=PA482&lpg=PA482&dq=Bangladeshi+cuisine&source=bl&ots=2yAzTKfr7f&sig=q7cuWcjpkHAPMkCWFdNde8OKoPY&hl=en&sa=X&ei=Qws5UImqCsWJiwKk1YDICA&ved=0CDwQ6AEwAg#v=onepage&q=Bangladeshi%20cuisine&f=falsehttp://books.google.com/books?id=5ZBaVhmRvCkC&pg=PA482&lpg=PA482&dq=Bangladeshi+cuisine&source=bl&ots=2yAzTKfr7f&sig=q7cuWcjpkHAPMkCWFdNde8OKoPY&hl=en&sa=X&ei=Qws5UImqCsWJiwKk1YDICA&ved=0CDwQ6AEwAg#v=onepage&q=Bangladeshi%20cuisine&f=falsehttp://books.google.com/books?id=XHNRPgAACAAJhttp://books.google.com/books?id=RFywfJunO1wC&pg=PA123&lpg=PA123&dq=Bangladeshi+cuisine&source=bl&ots=n6cb1GStoU&sig=xvd-EccnBml92J6h_qd3KRbXQe8&hl=en&sa=X&ei=CQw5UJG2FM3qiQK4yoGwDw&ved=0CC8Q6AEwADgK#v=onepage&q=Bangladeshi%20cuisine&f=falsehttp://books.google.com/books?id=pxcRDuFIYUsC&pg=PA40&lpg=PA40&dq=Bangladeshi+cuisine&source=bl&ots=DdE1OSAdcQ&sig=FYmkYbHzTDlAQ-dki4cM2Ifrn-M&hl=en&sa=X&ei=Qws5UImqCsWJiwKk1YDICA&ved=0CEkQ6AEwBQ#v=onepage&q=Bangladeshi%20cuisine&f=falsehttp://en.wikipedia.org/wiki/Food_and_Beveragehttp://www.ai.org/dor/3330.htmhttp://www.americasfoodandbeverage.com/http://www.bls.gov/ooh/food-preparation-and-serving/food-and-beverage-serving-and-related-http://www.bls.gov/ooh/food-preparation-and-serving/food-and-beverage-serving-and-related-http://www.fsg.org/Portals/0/Uploads/Documents/PDF/Role_of_Food_and_Beverage_Sector_in_Ecohttp://www.fsg.org/Portals/0/Uploads/Documents/PDF/Role_of_Food_and_Beverage_Sector_in_Ecohttp://www.google.com/http://www.guardian.co.uk/money/2012/may/29/vat-what-how-much-whyhttp://www.irs.gov/irm/part4/irm_04-023-007.htmlhttp://www.mass.gov/dor/individuals/taxpayer-help-and-resources/tax-guides/meals-tax-guide.htmlhttp://www.mass.gov/dor/individuals/taxpayer-help-and-resources/tax-guides/meals-tax-guide.htmlhttp://www.wisegeek.com/what-does-a-food-and-beverage-director-do.htmhttp://www.wisegeek.com/what-does-a-food-and-beverage-director-do.htmhttp://www.thefreedictionary.com/taxhttp://www.wakegov.com/tax/business/preparedfood/pages/default.aspxhttp://www.reuters.com/article/2012/10/19/us-obesity-who-industry-idUSB

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