VAT & SD Act 2012
Section 86 - Monetary limits of VAT officers in initiating proceedings for adjudication
(as updated till Finance Ordinance 2025)
1[ (1) To carry out the purposes of this Act or the rules made thereunder, or for imposition and collection of taxes,-
(a) in relation to imports and exports, the Customs Officers shall initiate proceedings in accordance with the provisions of the Customs Act;
(b) in relation to the supply of goods or services, the VAT officers shall, subject to the monetary powers specified in the following TABLE, initiate proceedings under the provisions of this Act, namely:–
2[ TABLE
| SL. No. | Officer | Power |
| (1) | (2) | (3) |
| (a) | Commissioner | value of goods or value of taxable service exceeding Tk. 1 (one) crore only; |
| (b) | Additional Commissioner | Value of goods or value of taxable service not exceeding Tk. 1 (one) crore only; |
| (c) | Joint Commissioner | value of goods or value of taxable service not exceeding Tk. 50 (fifty) lakh only; |
| (d) | Deputy Commissioner | value of goods or value of taxable service not exceeding Tk. 30 (thirty) lakh only |
| (e) | Assistant Commissioner | value of goods or value of taxable service not exceeding Tk. 20 (twenty) lakh only; |
| (f) | Revenue Officer | value of goods or value of taxable service not exceeding Tk. 5 (five) lakh only: ] |
Provided that the proceedings, which do not have any financial involvement, i.e., related to irregularity, those proceedings shall be disposed of by 3[any official not below the assistant commissioner].
Explanation.- For the purpose of determination of “value of goods or value of taxable service” mentioned in this Table, the value of vehicle carrying the seized goods or service shall not be included.
(2) Every VAT official shall, in each proceeding taken up under the provisions of this section, allow the concerned person an opportunity of being heard through service of a notice upon such person.]
4[(3) If any person 5[in the case of his failure, irregularity of evasion of tax], applies for summary adjudication, then in that case, the adjudicating officer can complete adjudication procedure in the said case without issuing show cause notice and without taking hearing.]
1 Section 86 was substituted by section 89 of the Finance Act, 2019 (Act No. 10 of 2019) with effect from 01 July 2019.
2 The table of section 86(1)(b) was substituted by section 22 of the Finance Act, 2023 (Act No. 14 of 2023) with effect from 01 July 2023.
3 The words “specified VAT officials” were substituted by section 51(a) of the Finance Act, 2021 (Act No. 11 of 2022).
4 Section 83(4) was Inserted by section 73 of the Finance Act, 2020 (Act No. 09 of 2020) with effect from 01 July 2020.
5 The words “in the case of failure or irregularity” were substituted by section 51(b) of the Finance Act, 2021 (Act No. 11 of 2021) with effect from 01 July 2021.
Disclaimer: This is the authentic English text of The Value Added Tax and Supplementary Duty Act 2012, as published under SRO No. 440-Law/2025/326-Mushak dated 05 November 2025. In the event of any inconsistency or conflict between the content on this website and the official Government publications or gazette notifications relating to laws, rules, regulations or SROs, the official Government publications and notifications shall prevail.