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

It has been over a year since Nepal Rastra Bank allowed Nepalese Citizens and business houses to own a prepaid dollar card worth US$ 500 for the online transactions. The cap of US$ 500 is per annum. To get the dollar card, one must visit the bank (only Class A and B bank can issue such cards) and submit the following document: a)  Prepaid Dollar Card Application (this can be obtained from concerned bank customer service desk) b) Updated Know Your Customer (this can also be obtained from concerned bank's customer service desk) c) Copy of the PAN Card Number (Original must also be carried in person for verification) Once the necessary form is filled and verification of documents, bank will then create a linked dollar account. This is separate to any other accounts you maintain in the bank. Amount transferred will be equivalent Nepalese Rupee for US$ 500 as of the day when the bank approves such prepaid dollar card. It generally doesn't take more than a day. However, to receive a ...

Profit is a financial gain from the difference between Selling Price and Purchase Price. Higher the gap between selling price and purchase price, higher the profit. Thus, there is an infinite potential for profit. However, business cannot sell their goods if the price is too high and the customers targeted can't afford to pay the set price. At the same time, if the price is set too low, business might not recover all the costs incurred in importing or manufacturing goods or providing services; ultimately, have to close the shop. I must at this point, tell you that neither Income Tax nor Value Added Tax law determine how much profit a business can make. It is general understanding that necessary tax invoice shall be issued on the price the good or services is sold. Similarly, necessary taxes must be paid as defined by the Income Tax law. At this time, I think its important for us to understand how is purchase price and selling price determined. Let's start our discussion with pu...

Question: Where to submit the TDS of house rent if there is an agreement between entity and entity. a) Inland Revenue Office or b) Local Ward Office? Answer: TDS of house rent where agreement is between one entity and another shall be submitted to Inland Revenue office. Only those where landlord/house owner is an individual, shall be deposited to Local Ward Office. Plz leave your comment or reach us out on Instagram, Facebook and TikTok page for your queries. You can search for "Arthabichar Nepal". Our team of experts will try to resolve and get back to you as soon as possible. Thank you and have a nice day.

Investment in the Share Market requires a lot of time, effort, and knowledge. Some of us might not have adequate information to make informed decisions. Might not have access to the right resources. We have seen a lot of misinformation being provided which generally remains unchecked or unverified. Through this initiative, we will try our level best to make the best use of the community to resolve your queries & provide you with authentic information. Feel free to ask questions using the comment section below or click here . We will post your question and our answer on this blog and share it with our community on Instagram, Facebook, and TikTok so that it benefits the entire investment community. Let us learn, earn and grow together. Thanks Arthabichar Nepal Team

Market Capitalization is the number of shares outstanding multiplied by the current share price. It tells you the value of the company's stock in the share market. Normally, the market cap lets you compare similar businesses.  Looking at the Standard & Poor's (S&P) index as of 17th March 2021, they have divided market caps into  Small-Cap (S&P SmallCap 600): $750 million to $3.3 billion Mid Cap (S&P MidCap 400): $3.3 billion to $11.8 billion Large Cap (S&P 500): $11.8 billion or more What does market cap tell us? Large Cap: These are matured companies and major players in their sector. There might not be exponential growth in the short period but in long run, however, provide a consistent increase in share value and dividend payments. Mid Cap: These are established companies that are supposed to have rapid growth. Most of the mid-companies are in the process of expansion and can offer better returns in both the short-term & long-term. But, inherently ...

Nepal government has announced significant tax waivers for the industry which have been hard hit by Covid such as hotels, travels, trekking, film industry, party palace, transportation industry, etc. Besides it has also provided relief to businesses having turnover up to Rs. 1 crore, additional loss set off and allowed a deduction for contribution to Corona Fund set up by Nepal Government and assistance in the construction of hospitals or purchase of medical equipment. Here's the detail that is applicable for Income Year 2077/78: Tax Waiver 90% tax waiver for business having a turnover up to Rs. 20 Lakh and profit of Rs. 2 Lakh that have opted for Presumptive tax. 75% tax waiver for business having a turnover above Rs. 20 lakh up to Rs. 50 lakh that have opted for turnover basis taxation. 50% tax waiver for business having turnover up to Rs. 1 crore. 1% tax on taxable income for hotels, travel, trekking, film development (development, distribution, and movie halls), party palace, m...

There are numerous reforms made by the Finance Ordinance 2078 in the Income Tax Act 2058. The biggest winner seems to be Small businesses having turnover up to NRs. 1 crore as they are now covered under the presumptive tax/turnover basis taxation. Unlike earlier, the condition of not having registered in VAT has also been removed. It has somewhat the lessened tax burden but doesn't mean one should refrain from keeping from books of accounts. Earlier such presumptive tax was available only for a resident person having income from business up to NRs. 20 lakh and profit of NRs. 2 lakh. Now, it has been increased to NRs. 30 lakh and taxable income of NRs. 3 lakh.  Similarly, turnover tax has been increased from earlier NRs. 50 Lakh to NRs. 1 crore in case of a business. Now, the new slab applicable is as follows: Turnover above NRs. 30 lakh up to NRs. 50 Lakh conducting Gas & Cigratte business with 3% commission or value addition: 0.25% of turnover other business:  0.3% of tur...