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Advance Tax Cut

The Income Tax Act provides for tax cuts in advance at fixed rates at the time of payment on certain specified payments, known as the Advance Tax Cut (TDS). It is based on the principle of Pay as You Earn. Such a system is adopted to reduce taxpayer tax payments and government tax collection costs

Advance tax deduction should be made while paying or writing down the expenses.

The amount of advance tax deducted by the payer has been filed in the specified bank or office under the relevant revenue heading and the details of the same and the information of the revenue filing has been obtained from the office or the nearest / affiliated & nbsp; Having & nbsp; Must be filed with the Inland Revenue Office within 25 days of the end of the month

There is also a facility to submit advance tax deduction details from the internet. To do so, you must first obtain a Password from the relevant office. e-TDS must be verified by the relevant office.

In Nepal, income from employment, business, investment and contingency sources is taxed. Wages, wages, allowances, bonuses, pensions, allowances or any payments received from the investment of labor are included in the income from employment. Profits, benefits, service charges, proceeds from the sale of goods or services, capital gains related to the business and payments related to the business are considered to be income from the source of the business. In any case, dividends, interest, royalties, rents, natural resource payments, investment insurance or retirement fund benefits, capital gains or other payments related to investment are included in the investment income. Lottery, gift, prize, bounty, winnings and any other contingency benefits are included in contingency income.

House rent is subject to 10 percent income tax. Such a tax is a last resort for natural people. In the case of retiring companies, the income should be determined automatically by submitting the details. A.W. From 2075/76, natural persons have to pay the rent at the local level at the rate fixed by the local level, while in the case of the body, the body dealing in rent has to pay the rent at the rate of 10% to the Inland Revenue Office / Taxpayer Service Office.

The following institutions are tax exempt.

  1. Non-profit organizations of public nature established for the purpose of non-profit with the certificate of tax exempt organization from the Inland Revenue Department. Non-profit organizations formed for the purpose of promoting social or sports related facilities without benefiting the members.
  2. Political parties registered with the Election Commission defined by the Income Tax Act, 2058 BS as income tax exempt institutions.

Institutions receiving tax exemption should obtain permanent account number (PAN) from the offices under the Inland Revenue Department. The registration certificate must be renewed within 6 months from the end of the annual income year. The financial statements of the organization should be filed annually. Also, details of advance tax deduction and tax amount should be filed on time. If the transaction is subject to income tax, the income statement and tax amount should also be filed within 3 months.


Value Added Tax (VAT) is an indirect tax on the consumption of goods and services. It is called value added tax because it is a tax levied on various levels and stages of production, import and distribution of taxable goods and services.

Law enforcement
You can compete with others because you get the cut.
Doing business with government offices expands the business.

The taxpayer has to pay the tax of each tax period within twenty five days from the date of expiry of that period. Tax period means taxpayers who have to submit tax returns on a monthly basis within 25 days of the end of the month, bi-monthly quarterly taxpayers within 25 days of the end of the quarterly tax period)

The details of Schedule 10 of the Act are to be used by the registered taxpayers to submit the details of purchase and sale of their transactions to the Large Taxpayer Office, Intermediate Taxpayer Office, Inland Revenue Office and Taxpayer Service Offices.

Within 25 days of the expiration of the tax period, the taxpayer must submit to the concerned Inland Revenue Office or Taxpayer Service Offices and the District Taxpayer in the absence of Inland Revenue Office or Taxpayer Service Office to the Comptroller and Auditor General.

Within 25 days of the expiry of the tax period, the tax period can be maintained for two months by the hoteliers and tourism entrepreneurs if the taxpayers are required to submit the tax returns on a monthly basis. Should be explained.

  • If any person dealing in the taxable transaction after obtaining a loan from banks and financial institutions exceeding RS 10,00,000.
  • If Tax officer finds stock during inspection exceeding the limit prescribed by IRD.
  • The following points are removed from Finance act 2078/79 so no mandatory registration on the following.
  • In other cases, if Turnover is in excess of 50 Lacs dealing in goods or 20 Lacs dealing in Services during the preceding last 12 months then compulsory vat registration required.

Excise Duty

In the case of alcohol and tobacco products, the excise duty paid on the purchase of raw material used for the production of such goods can be deducted on the basis of the amount used in the production. Other self-discharge system items (other than tobacco) can be deducted on the basis of purchase.

Under what circumstances can the excise duty be refunded? The amount of excise duty paid by the excise industry for the purchase or import of raw materials used in the production of goods exported by the exporting industry is refunded if the amount of excise duty to be paid is not deducted.

The claim should be refunded within one year from the date of submission of excise details.

Certificate of Origin Withdrawal declaration form, receipt and invoice Will of Entry and Airway Bill / Consignment Note / Transport Bill Details of receipt of foreign currency payment through bank

Fine or imprisonment for up to one year or both.