53E. Deduction Or Collection At Source From Commission, Discount Of Fees.

   
¹[53E. Deduction or collection at source from commission,discount, fees, etc.- (1) Any company making a payment or allowing an amount to a distributor, called by whatever name, or to any other person by way of commission, discount, fees, incentive or performance bonus or any other performance related incentive or any other payment or benefit of the similar nature for distribution or marketing of goods, shall deduct or collect tax at the time of payment or allowing the amount at the rate of ten percent (10%) of the amount of payment or the amount allowed or the value of benefits allowed, as the case may be.

(2) Any company making a payment in relation to the promotion of the company or its goods to any person engaged in the distribution or marketing of the goods of the company shall, at the time of payment, deduct tax at the rate of one point five percent (1.5%) of the payment.

(3) Any company, other than an oil marketing company, which sells goods to-

      (a)   any distributor, or

       (b)  any other person under a contract, at a price lower than the retail price

              fixed by such company, shall collect tax from such distributor or such

              any other person at the rate of five percent (5%) on the amount equal to

              B x C, where-

              B = the selling price of the company to the distributor or the other   

              person

              C = 5%:

Provided that a cigarette manufacturer company shall collect tax at the time of sale of its goods to such distributor or to such other person at the rate of three percent (3%) of the difference between the sale price to the distributor or the other person and the retail price fixed by such company.

(4) In this section-

1. “payment” includes a transfer, credit or an adjustment of payment; ²[“or an order or instruction of making payment”]

        b.“contract” includes an agreement or arrangement, whetherwritten or not.” ³|;

        c. company includes a firm]

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¹ Ins. by F. A. 2017

2 Ins by F. A. 2020

3 Subs. ";" for "." new clause (c) by F. A. 2021

53E. Deduction Or Collection At Source From ¹[Commission, Discount Of Fees].

²[(1)  Any  person  being  a  corporation,  body  or  authority  established  by  or under  any  law  including  any  company  or  enterprise  owned,  controlled  or managed  by  it,  or  a  company  registered  under ³[⁴[the Companies Act, 1913 (VII of 1913) or]]  কোম্পানী  আইন,  1994 (1994 সনের ১৮  নং  আইন)  which makes any payment to any distributor or to any other  persons  by  way  of  commission,  or  fees ⁵[or  allows  any  discount] ⁶[or dealer's promotional charges or fees or commission or any other payement called by whatever name] for distribution or marketing of goods  ⁷[Manufactured by it], shall deduct or collect at the time of credit  of  such  commission,  or  fees  or  at the  time  of  payment  thereof, whichever is earlier,  ⁸[or at the time of allowing discount] as advance tax an amount  at  the  rate   ⁹[¹⁰[ten  percent].  of  commission,  or  fees  payable  or discount allowed]

¹¹[(2) Any company, other than an oil marketing company, whick sells goods to-

(a) any distributor; or
(b) any other person under a contract; at a price lower than the retail price fixed by such company shall collect tax from such distributor or such any other person at the rate of five percent(5%) on the amount equal to B x C where-

B= the selling price of the company to the distributor or the other person;
C= 12%

Explanation.- >For the purpose of this section, “contract” includes an agreement or an arrangement, whether written or not.]

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¹ Subs. for "by way of commission or fees" by F.A. 2001

² Existing law of section 53E is numbered as a sub-section (1) & ins new sub section (2) by F.A 2013
³ Subs. for "the Companies Act. 1913 (VII of 1913)" by F.A. 1995
⁴ Omitted by F.A. 2011
⁵ Subs. for "by way of commission or fees" by F.A. 2001

⁶ Ins. by F. A. 2015
⁷ Omitted by F.A. 2011
⁸ Subs. for whichever is earlier" by F.A. 2001
⁹ Subs. for "five per cent of commission or fees payable" by F.A. 2001
¹⁰ Subs. for "seven and half percent" by F.A. 2011
¹¹ Subs by F. A. 2016

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