Taxation in Nepal

Define direct tax with example.

What do you mean by "Non-chargeable business assets"?

Explain the meaning of "Canon of Certainty"?

What do you mean by Permanent Account Number (PAN)?

Briefly describe the provision related to quantification of accommodation facilities provided to an employee.

William is foreign citizenship holder arrived in Nepal on 1st Falgun, and stayed in Nepal at the end of Ashadh of previous income year. He earned in Nepal Rs. 500,000 as consultancy fee.

Required: Residential status and tax liability of William.

Bikram, a resident of Nepal furnished the following particulars of his income for the previous year. a. Assessable income from garment business Rs. 500,000 b. Assessable loss from trading business Rs. 100,000. He has claimed the following deductions: Pollution control cost Rs. 225,000

Required: a. Adjusted taxable income and allowable Pollution control cost.

Mr. Nepal is retired government employee and received pension income Rs. 612,500 including one month equal Dashain allowance.

Required: Compute tax liability with explanation.

A trading organization supplied the following information. a. Beginning inventory of merchandise of Rs. 175,000 b. Import of merchandised during the year Rs. 500,000 c. Customs duty paid Rs. 50,000 for merchandised products. d. Freight charges Rs. 25,000 for merchandised products. e. Ending inventory value costing Rs. 50,000 but the market value Rs. 70,000.

Required: Cost of trading goods.

Binod is presumptive taxpayer has total turnover and income amount Rs. 3 million and Rs. 3 lacs respectively. Firm is situated in Pokhara Metropolitan City. What will be the tax payable of such presumptive taxpayer?