Allowability of the fees paid to regulators and governm...

Tax Talk Nepal Forums Discuss Income Tax Allowability of the fees paid to regulators and government bodies

Allowability of the fees paid to regulators and government bodies

  • Various Renewal and Registration Fees are paid by BFIs, Insurance Companies, Airlines Companies and Telecommunication Companies to their respective regulators like NRB, Beema Samiti, CAAN, NTA, SEBON, etc. which are a separate legal person that the government.

    These bodies don’t issue PAN Bills but all of them are taxable entities except for NRB (as mentioned in Sec. 10 of Income Tax Act). Are such fees paid to such regulators disallowed under sec 21 for having incurred expense without a PAN bill? If the intent of the lawmaker on bringing such provision is to ensure that the payments are made to legal and legitimate parties, then why hadn’t the lawmakers clarified in the Act itself that the fees paid to Government, Government bodies, (like Office of Companies Registrar) are allowed without a PAN Bill? And similarly such clarification of the provision for the regulators of various businesses.

    As sec 21 has only allowed such taxes paid to local governments.

    Please clarify upon this.

    Thanking you in advance

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