1.When should you pay VAT as per tax returns?
Every registered taxpayer must pay VAT of a tax period within 25 days from the date of completion of such tax period.
2. What happens if you do not pay taxes within stipulated time?
If you do not pay within stipulated time, you will have to pay additional fee at the rate of 10% annually on the remaining tax. Additionally, you will have to pay interest at the rate of 15% per year. The tax officer can also collect tax through any or all of following procedures by taking prior approval of Director General:
- By deducting on the amount to be returned to the taxpayer if there remains any.
- By capturing movable and immovable properties of tax payer.
- By auctioning all or any property of taxpayer.
- By deducting tax amount from the balance of taxpayer deposited at banks or financial institutions.
- By deducting the amount from the amount to be received by the taxpayer from the government or any organized institution or local bodies under the authority of Nepal government.
- By deducting from third parties from the amount to be received by the taxpayer along with his approval.
- By stopping export import or other transactions of taxpayer.
3. Where should you pay VAT?
You should pay VAT in stipulated banks and in Inland Revenue Offices for certain limits of amount.
4. Can VAT be paid under any revenue account?
You cannot pay VAT under any revenue account. It should be paid under mentioned heading and at prescribed bank.
5. What are the revenue accounts for tax payment?
Sale distributor 110213
Service oriented 110214
Tourism business 110215
6. Can tax be paid through account payee cheque?
You may pay VAT through account payee cheque. But the date of payment is recorded for the date when amount has been debited from the balance although the cheque may be submitted in earlier date.so, if the amount is deposited late, interest may be charged.
However it is not so in the case of Good for Payment cheque. The date of presentation of cheque is recorded as date of payment of VAT.
7. If you cannot pay tax within tax period due to strikes, or other natural calamities, can you be excused from paying fees for delayed payment?
If you submit an application stating reasons of inability due to situation beyond reasonable human control and the tax office deems it appropriate, you may be excused from paying fees for delayed payment.
8. What are the situations determined as beyond reasonable human control?
Following situations are determined as situation beyond reasonable human control:
- Up to 7 days from the date of recovery in case the taxpayer has been ill and disabled,
- Up to 7 days from the date of obsequies, in case the taxpayer has to undergo obsequies,
- Up to 35 days from the date of giving birth, in case the taxpayer gives birth to a child,
- Up to 7 days from the date of application, in case the taxpayer dies or becomes mad or disappears and hi/her guardian make an application to the tax office,
- Up to 7 days from the date of opening of road, in case the taxpayer could not reach the office due to obstruction on roads because of natural calamities,
- Until next day of the end of closure of transportation, in case the tax payer could not reach because of complete closure of transportation.
9. When should you pay tax, additional charges and interest as per tax assessment order?
You should pay tax, additional charges and interest within 7 days from the date of receipt of such order.