(1) Notwithstanding anything contained in any other provision of this Act, the minimum tax shall be payable by the taxpayer, subject to the provisions of this section.

(2) Subject to sub-section (3), the following minimum tax shall be paid on income from such sources deducted or collected under certain sections:

(a) the tax deducted or collected under the clauses mentioned in clause (b) shall be deemed to be the minimum tax on the income of one or more sources from which the tax is deducted or collected;

(b) the tax referred to in clause (a) shall be deemed to be tax deducted or collected under sections 88-92, 94-95, 100-102, 105, 106, 108, 110-118, 120-129 and 132-139;

(c) account shall be kept regularly in accordance with the provisions of section 72 for such source or sources of income to which the minimum tax is applicable;

(d) the income from any such source to which minimum tax is payable under this sub-section shall be determined in a regular manner and tax shall be calculated on such income at the applicable rate; if the tax so calculated is more than the minimum tax under clause (a), such higher tax shall be payable on the said income;

(e) Income or loss computed under clause (d) shall not be adjusted against income or loss computed for any regular source respectively.

(3) Tax deducted or collected from the following sources shall not, for the purpose of sub-section (2), be treated as minimum tax, namely:-

(a) Tax collected under section 89 from the following persons any oil company contractor or, as may be prescribed, a sub-contractor of any oil company;

1) oil marketing companies and their dealers or agents, but shall not include petrol pump stations;

1. IV) any company engaged in the transmission or distribution of gas;

(b) tax collected under section 120 on goods imported by any industrial undertaking other than an industrial undertaking engaged in the manufacture of cement, iron or ferrous products, ferro alloy products or perfumes, carbonated beverages and toilet water for its own use as raw materials.

(4) Where a taxpayer derives income from regular sources in addition to income from one or more such sources to which minimum tax is applicable under sub-section (2),-

(a) regular tax shall be assessed on income from regular sources;

(b) the tax of the said taxpayer shall be the sum of the tax assessed under sub-section (2) and the regular tax under clause (a).

(5) Subject to the provisions of sub-section (6), the minimum tax on any person, firm or company shall be as follows, namely:-

(a) A taxpayer-

(i) any such person having gross receipts of not less than Tk. 3 (three) crores;

(ii) any such firm or association of individual having gross receipts not less than Tk. 50 (fifty) lakhs; or

iii) any company,

In any assessment year, whatever his profit or loss may be from any reason, including consequential loss, adjustment of loss in one or more previous years or allowance (including depreciation allowance) or deduction allowed under this Act, the minimum tax payable in any assessment year at the rate specified in the table below.

Table

Provided that in the case of any industrial establishment engaged in the production of goods, for the first 3 (three) years of commencement of its commercial production, the said rate shall be 0.1% (zero point one percent) of such receipts;

(b) where the taxpayer has any such sources of income which are exempted from tax, the total receipts derived from such one or more sources shall be shown separately, and the minimum tax under this sub-section shall be governed by the following, namely:-

(i) shall be taxed at the regular rate in respect of receipts from such sources, the minimum tax shall be calculated by applying the rate specified in clause (a);

(11) in the case of income derived from a source receiving tax exemption or reduced tax rate, the minimum tax shall be calculated by reducing the rate mentioned in clause (a) at a rate proportionate to the exempted or reduced tax rate;

(iii) The minimum tax under this sub-section shall be the sum of the minimum tax calculated under sub-sections

(i) and (ii).

(6) Where both the provisions of sub-section (2) and sub-section (5) apply to a taxpayer, the minimum tax payable by such taxpayer shall be-the minimum tax under sub-section 2); or

(b) the minimum tax under sub-section (5), whichever is higher.

(7) Minimum tax paid under this section shall not be refundable or adjusted against refundable dues in one or more previous years or refundable dues of any tax year from any source.

(8) Where any surcharge, any additional interest, any additional sum, etc., is payable under the provisions of this Act, shall be payable in addition to the minimum tax.

(9) Where the regular tax computed in any tax year exceeds the minimum tax under this section, the regular tax shall be payable.

(10) For the purposes of this section-

(a) “Regular Source” means any such source in respect of which the minimum tax under sub-section (2) is not applicable;

(b) “Regular Tax” means tax computed on regular income using the regular method;

(c) “Regular Rate of Tax” means the rate of tax which would have been applicable unless an exemption or reduction rate of tax had been allowed;

(d) “Gross Receipts” means-

(i) all proceeds derived from the sale of goods;

(ii) all fees or charges received for providing services or facilities, including commissions and discounts;

(iii) All receipts from any source of income.