Arthabichar Nepal - Guide to Entrepreneurs, Startups, and Business Enthusiast

Last Fiscal Year Nepal Government declared that every expense must have either a PAN/VAT invoice or paid to those registered in PAN/VAT. This was a surprise and was throwing most of the malpractices out of the bus. The fraudulent activities such as ghost employees, procurement through unregistered mom & pop stores, and most importantly, all the informal/casual/daily workers who were paid out in cash and had no legal records to demonstrate those exist.  It was indeed a good initiative but at the same time government didn't take into account the ground reality. It was and still is hard to find someone registered in tax in rural areas of the country including those working in daily wages or as casual workers. I, personally, think that all the business entities need to get registered and the government shouldn't give them an option. But, even, if we wanted to have all those individuals having the income to file a self-assessment, it might not be feasible for daily workers. Unle...

Given the lockdown due to Covid-19, the Nepal government through the Honorable minister-level decision has extended the period of submission of tax returns and applicable to Jestha 25, 2077 (i.e. 7th June 2020 ) .  Here's the applicable list for the same: 1) Monthly, Bi-monthly, and quarterly VAT returns for the month of Falgun and Chaitra along with the payment of VAT. 2)  Application of refund of VAT for Sec 25D provided the due date for application falls under the lockdown period. 3) Monthly Excise returns for the month of Falgun and Chaitra along with the payment of excise tax. 4) Withholding Taxes (TDS) for Falgun and Chaitra 5) Amended Estimated Tax Return for FY 2076/77 including 2nd installment Advance Tax originally required to be submitted by Chaitra end. This can be submitted by Jestha end , unlike others which have Jestha 25, 2077 as the deadline. 6) Education Service Fee, Telephone Ownership Fee, and Telecommunication Service Fee. In addition, Nep...

Postage Stamp was a mandatory part of the application for registration of a company in Nepal. In fact, it is not only for the registration of the company but for most of the government applications, be it simple handwritten or special forms. Thumb rule is no postage stamp no registration. You must be wondering is it in addition to an application fee or registration fee levied by the government. And, the answer is yes. This is on top of the regular service fee charged.  One can find the postage stamp easily in the nearby shops or cafeteria where such government offices are situated. However, with the Companies Act, 2063, and its directives issued in 2072, the provision of furnishing postage stamp along with application has been repealed. What does it mean? One is no longer required to buy a postage stamp and place it on top of the application or form for registration of the company. Photo credit: Google Image Let us talk about the Postage Stamp itself.  Do you know wh...

Extension of due date for filing returns The due date for filing eTDS, VAT and Excise returns, and payment of TDS, VAT, Excise Duty for the month of Falgun 2076 which becomes due on 25 Chaitra 2076 (7 April 2020) has been extended to 25 Baishak 2077 (7 May 2020). Due date for Depositing 2nd installment of advance tax The due date for deposit of the 2nd installment of Advance Tax that would have been due on 30 Chaitra 2076 (12 April 2020) has now been extended to 31 Baishak 2077 (13 May 2020). Tax relief for contributions to the Corona Infection Prevention Control and Treatment Fund Any amount contributed by a person (individual, couple or entity) to the Corona Infection Prevention Control and Treatment Fund established by the Government of Nepal and it's state shall be allowed as a deductible expense while calculating taxable income for the current Fiscal Year. Note: The above points were part of the relief measures announced by the Finance Minister on 29 March 2020.

Registration Fee for the private firm depends on the proposed capital of the firm.  Private Firm Registration Rules, 2076 (12th Amendment) has currently made a provision of six brackets with a maximum fee of NRs. 75,000. Through the amendment, the Government of Nepal has also tried to attract those representing Women, Dalit, and Deprived Sector to the business with the waiver of 50% on each bracket. The list below gives us the ceiling and the registration fee per ceiling. 1) NRs. 1,000 for Capital up to Nrs. 1,000,000 (One million or Ten lakh) 2) NRs. 5,000 for the capital above NRs. 1,000,000 upto NRs. 5,000,000 ( Five million or Fifty lakh) 3) NRs. 10,000 for the capital above NRs. 5,000,00 upto NRs. 10,000,000 (Ten million or One crore) 4) NRs. 50,000 for the capital above NRs. 10,000,000 upto NRs. 100,000,000 (Hundred million or Ten Crore) 5) NRs. 75,000 for the capital above NRs. 100,000,000 For those representing Women, Dalit and Deprived Sector registratio...

Statement of Accounting Policies and Notes to Financial Statements are an integral element of the financial statements.  All the accounting policies, assumptions, estimates, and caveats used in the preparation of the financial statements are part of this document. As such, it helps users to read the financial statement properly. The objective is to disclose the accounting events that cannot be displayed in the body of the financial statements that exert significant influence or are necessary for an understanding of the financial statements. It also helps users in predicting the entity's future cash flows and, in particular, their timing and certainty. What does it normally contain? Introduction of the non-profit organization (NPO) and its activities The accounting policies adopted by non-profit organizations (including revenue recognition criteria for assets, liabilities, income, and expenses) Nature of the organization The contents of the cash and cash equivalents Hi...

The Fulbright Commission announces the 2020 competition for the Fulbright Foreign Student Program for Nepalese Students for Master's Level Study in the United States of America (USA). Those selected will begin in August-September 2021. What does it cover? The program provides all expenses (including Travel) for a master's degree program of up to two years at selected US Universities, in any field except for medicine and nursing. Who can apply? Those who have completed their SLC (or equivalent) from rural areas, women, minorities, and people from under-served populations are strongly encouraged to apply. For more information about the application and essay tips, please visit   Question and Answer sessions for the program will be held at USEF-Nepal, Aakriti Marg, Maharajgunj, Kathmandu on the following dates: March 5, 10 AM to 12 NOON March 20, 2 PM to 4PM April 3, 2 PM to 4PM Deadline for submission of application: 4PM, Friday, April 10, 2020