Posts

Huge amount of trouble, little amount of “Tax Evasion”

               We in daily life hear some words like “Tax planning” and “Tax evasion”. But due to the lack of awareness or I should say knowledge of tax provisions of the country involve in tax evasion activities and think that we are planning our tax liability. But you must be aware that these two words have a huge difference. In simple words, if I define tax planning I would say tax planning means reducing tax liability by taking advantage of the benefits provided by the various provision of the tax act, in this we comply with the requirement of the provisions of the tax act. For example, as per section 1(12) of schedule 1 of the Income Tax Act, 2058 if we take a life insurance policy and pay a premium then we are allowed to deduct up to Rs. 40,000/- to arrive at taxable income. On the other hand, if we try to reduce tax liabilities by claiming those benefits which are not available in the tax act itself then it is tax evasion. For example, the provision of section 1(12) of Schedule
Post a Comment
Read more

Register Your Business in VAT

                 Let me share with you a short story about a young boy named “Kumar Dangi”. It was the year 2021 and Kumar was just facing the real world outside the college. The young boy was energetic and determined to do something with his life in Nepal. The young boy has a mantra “if we are determined we can establish an empire in our county then why should we go to foreign countries for employment” though his parents want him to go to Australia on a study visa and settle there. But Kumar was determined and wanted to do something in Nepal. With determination, he started a business. Business of furniture in Pokhara. At the start, he faced some kind of difficulties to arrange the fund as he was not born with a silver spoon in his mouth. As his parent does not want him to start the business so it was very hard for Kumar to convince his parent. But he could manage to convince them with the help of the emotional dialogue of “3 idiots” where Farhan says to his father I will be happy pa
Post a Comment
Read more

You shouldn’t ask for a discount

Image
                 We are human beings and need freshness and enjoyment. Sometimes we need freshness after a long period of mind-blocking and body-jamming hard work; sometimes we want freshness by spending quality time with someone close to us. That person may be your friend, spouse, brother, etc. Let me tell you an interesting or I should say knowledge-sharing story shared by one of my friends Amitabh Adhikari. It was 2020 and Amitabh was living in Chitwan with his wife and two-year-old son. He was just in Nepal after spending almost 22 years of his life in India. As I said he was new in Nepal and desperately searching job. Those days were really painful for him. He didn’t know anything about laws and regulations and culture etc. of here as the almost entire first part of his life was in India. wherever he was facing an interview he was getting a rejection. He was really in pain with the responsibility of his family. After spending almost 3-4 months unemployed, he could at least make so
Post a Comment
Read more

Yes, you may deny paying VAT to the supplier of taxable goods or services.

Image
We especially the people involved in auditing work travel a lot.  And yes, I too am involved in the auditing work of different organizations and travel to almost every corner of the country. We live in hotels and eat in restaurants during our travel. Once by the grace of god, I got an opportunity to visit Itahari, Province 1. My team and I were living in a hotel named "Hotel Verandah". It was a stay of around 7-8 days. After completion of the auditing work, it was time to check out. We ask for the final bill. The person at the counter printed the invoice and handed it over to us. Yes, it was a tax invoice.          My first question to the person was "is the hotel registered in VAT?". Obviously, his answer was yes otherwise the hotel would not have a right to issue tax invoices and collect VAT. You must be thinking about the turnover of the hotel must have exceeded the threshold limit of 2 million. Yes, I do agree that the turnover must have exceeded the threshold
Post a Comment
Read more