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

Introduction: Ensuring you have a valid tax clearance certificate is crucial for both individuals and entities. Previously, obtaining it online was convenient, but now a visit to the tax office is required. In this article, we'll guide you through the process, focusing on individuals with salary income. Step-by-Step Guide: Obtain a Certified Salary Certificate: Your employer should provide a certificate detailing your annual salary, along with deductions like CIT, PF, Social Security Fund, and Insurance. Ensure the income and ETDS match the certification letter. Visit the Correct Tax Office: If your employer's location differs from your PAN registration, visit the tax office where your employer is registered. Complete the Application Form: Pick up the Tax Clearance certificate application form from the tax office's reception. It must be signed by the concerned person. If they're unavailable, provide an authorization letter matching the authorized person's identif...

I saw there is a lot of confusion and misconception around what a restaurant can charge. Many people are complaining over social media that restaurant owners are still charging Service Charge and VAT to them despite recent ruling from the Court. Let us clear the confusion today. Well, this story came into limelight because of journalist Madan Dhungana who filed the case in Kathmandu District Court against Green Valley Resort. In this case, Green Valley Resort had issued an invoice that was above the menu price.  Let's take an example to under what might have happened.  Restaurant had listed coffee as Rs. 200 on its menu, customer ordered it understanding it will cost him/her Rs. 200 but when S/he was given the bill at the time of payment, S/he saw that additional 10% Service Charge was levied followed by 13% VAT as applicable per VAT Act. Customer now ended up paying Rs. 248.60, Rs. 48.60 more than the listed menu price which court deemed as a cheating and not fair to consumer...

Nepal's Income Tax Act defines Windfall gain as a gain obtained by means of lottery, gift, prize, tips, share of earning in a game (जितौरी)  or any other gain acquired incidentally.  Let us explain by example what can potentially be Windfall Gain.  1) Let's say apple recently launched a iPhone 14 in Nepal. Part of such launch, company offered its customer who buys iPhone, an iPad for free. The market value of the iPhone is Rs. 214,000 and that of iPad is Rs. 189,000. In such case, customer who received Rs. 189,000 worth of iPad without any additional cost will be considered a prize hence, a windfall gain. 2) Recently DRS gaming won US$ 292,000 (approx. Rs 4 crore) for being runner's up in the grand finals of the PUBG Mobile Global Championship. Let's assume here that DRS gaming has not been registered as a company but simply represented by individuals. If I am not mistaken, there are 4 members in the team. So, each individual will have won Rs. 1 crore as share of earni...

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