Taxation in Nepal

Define indirect tax with example.

Differentiate assessable income and taxable income.

Define cash basis of accounting.

What do you mean by capital and revenue expenditure?

Explain the meaning of "Canon of Certainty".

Briefly describe the provision related to quantification of vehicle facility provided to an employee.

Thomas is foreign citizenship holder arrived in Nepal on 1st Poush 2078 and stayed in Nepal at the end of Ashad 2079. Required : His residential status for the income year 2078/79.

Mr. Nepal is retired government employee and received pension income Rs. 6,50,000 including one month equal Dashain allowance. Required : Tax liability of Mr. Nepal he selected family status.

ABC manufacturing Company supplied the following information. • Opening stock of raw material and closing stock of finished goods Rs. 10,000 and Rs. 20,000 respectively. • Import during the year Rs. 500,000, Custom duty to Rs. 40,000 and administrative expenses Rs. 25,000. Required : Cost of trading goods.

Smrity is presumptive taxpayer located in Walling Municipality and her total turnover Rs. 2 million and total operating expenses Rs. 1.8 million during the previous income year. Required: Smrity opted presumptive taxpayer status and compute tax liability with explanation.