(1) The bank or any other financial institution extending any credit facility under a local letter of credit or any other financing agreement, not being a financing arrangement under sub-section (2), for purchasing any goods in Bangladesh by a person (hereinafter referred to as "Person A") from any person (hereinafter referred to as "Person B") for the purpose of finding, or of reselling after process or conversion shall deduct, at the time of paying or crediting to Person B, tax at the rate of 3% (three percent) of the amount so paid or credited in relation to the purchase by Person A.

(2) The bank or any other financial institution extending any credit facility to a distributor under a financing arrangement in which a person (hereinafter referred to as "Person C") receives payments from such bank or the financial institution against the invoice or sale of goods to its distributor (hereinafter referred to as "Person D") shall deduct, at the time of paying or crediting payment to Person C, tax at the rate of 1% (one percent) of the amount so paid or credited in relation to the goods invoiced to Person D.

(3) The bank or finance company shall deduct tax at the rate of 2% (two percent) on the amount paid or loaned by the bank or finance company in respect of the opening or making of local credit or any other financing agreement opened or made for the purchase of all kinds of products and computers or computer parts. 

(4) Rice, Wheat, Round Potato, Onion, Garlic, Beans, Chickpeas, Lentils, Ginger, Turmeric, Dry Chillies, Dal, Maize, Whole Flour, Flour, Salt, Edible Oil, Sugar, Black Pepper, Cinnamon, Nuts—the bank or finance company shall deduct tax at the rate of 1% (one percent) on the amount paid or loaned by the bank or finance company in respect of the opening or making of a local letter of credit or any other financing agreement opened or made for the purchase of cloves, bay leaf, jute, cotton, and yarn.

Explanation: For the purpose of this section, 'distributor' means a person who carries out the activity of supplying processed goods manufactured by another person to the ultimate purchaser either directly or through any other intermediary.

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