1.What is tax returns?
Tax returns means the details regarding purchase and sale transactions of registered tax payers to be filed at the Inland Revenue Office or Tax Payer’s Office. It shall be in the format provided under Schedule 10 of the VAT Rules 2052.
2. When and where should you submit tax returns?
You should submit your tax returns monthly, once in two months or four months based on nature of your registration that include compulsory registration or voluntary registration. Upon making assessment of the tax payable in every month, you need to file tax returns within 25 days after the end of the month before the tax office where you have been registered. Where there are no tax payer’s office or Inland Revenue offices, you need to submit the tax returns at Financial Comptroller General Office within 15th day of the month.
3. Who can submit tax returns once in every two months?
Hotel and Tourism Enterprises can submit tax returns once in every two months on recommendation of Inland Revenue Department. They are required to submit tax returns on:
- Within 25th Asoj for filing tax returns of Shrawan to Bhadra.
- Within 25th Mangsir for filing tax returns of Asoj to Kartik.
- Within 25th Magh for filing tax returns of Mangsir to Poush.
- Within 25th Chaitra for filing tax returns of Magh to Falgun.
- Within 25th Jestha for filing tax returns of Chaitra to Baisakh.
- Within 25th Shrawan for filing tax returns of Jestha to Asadh.
4. Who can submit tax returns once in every four months?
Following taxpayers can submit tax returns once on every four months:
- Taxpayers having transaction value less than 20 lakhs and have voluntary registered,
- Brick factories,
- Business relating to publication house and digital publication
5. When does voluntarily registered taxpayers need to file tax returns?
Voluntarily registered taxpayers may submit tax returns on-
- Within 25th of Mangsir for filing tax returns of Shrawan to Kartik.
- Within 25th of Chaitra for filing tax returns of Mangsir to Falgun.
- Within 25th of Shrawan for filing tax returns of Chaitra to Asadh.
6. What is the process for online filing of tax returns?
- Visit the website, www.ird.gov.np,
- Go to taxpayer portal,
- Select VAT folder and click on VAT Return Entry
- Enter username, password, PAN number, email address, contact number and click on register button in order to obtain submission number,
- Enter details regarding purchase and sale transactions and VAT amount specifying tax period save it,
- You may recheck the details and declare the particulars filled are correct, and submit it.
- You may verify the details in tax payer’s office submitting the sheet printed after online filing or you may verify yourself.
- Unless you have verified, tax returns is not recognized as submitted. So, you need to verify timely in concerned office or you may even verify yourself if you have got username and password for verification.
7. What is the process of auto verification?
In order to verify the details that you submitted online by yourself, you need to get username and password from the concerned tax payer’s office or Inland Revenue Office. This is not required to be renewed and can be used every time you need to verify. You need to change the password for self-verification after obtaining the username and password.
Change your password by opening the change password menu in general folder of taxpayer portal.
Login and select your submission number selecting required VAT, Income tax module. Verify your details typing the required previous VAT due amount. Now you may print the details that you submitted.
8. What happens if you do not submit tax returns?
If you do not submit tax returns, you will be fined the greatest amount among the amount of fine calculated at the rate of 0.05% of tax per day as per the tax returns and Rs 1000 per tax period.
9. Who has to submit tax returns?
Generally, taxpayer himself has to submit tax returns. However, your authorized representative may also submit it. In case of death of taxpayer, his successor or guardian is required to submit the same.
In case of legal person, if it dissolves, the liquidator has to submit the same.
10. Do you need to file it although you do not have transactions?
You need to submit tax returns after completion of tax period although you do not have transactions during the period.
11. What should you do if there is dissimilarity in tax returns and the amount in purchase/sale books?
You may include and correct in the next tax period immediately. You may inform IRO/ tax payer’s office and the office may circulate it to the IRD for the amendment.
12. When can Tax officer make you liable by determining tax?
Tax officer cannot create your tax liability other than in following conditions:
- If tax returns is not filed in time,
- If incorrect or incomplete tax returns has been submitted,
- If false tax returns has been deposited,
- If there existed any reason for tax officer to believe that the tax amount has been shown less or incorrect,
- If there existed any reason for tax officer to believe that less invoicing has been done in supply amount,
- If supply has been made to group of companies with less invoicing,
- If the person having responsibility to register has done transaction without registration,
- If sales has been made without invoicing,
- If unregistered person raises VAT.
Hence, one should be dutiful in filing tax returns and careful of the details.