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Taxation in Nepal syllabus

ACS 2019 units · 33 topicsAcademic year 2083/84
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Taxation in Nepal

9 units

1. Introduction (8 LHs)

  1. Concept and definition of tax
    1. Concept and definition of tax
  2. Sources of financing in Nepal
    1. Sources of financing in Nepal
  3. Difference between Tax, duty, charge and fee
    1. Difference between Tax, duty, charge and fee
  4. Direct tax and indirect tax
    1. Direct tax and indirect tax, Impact of direct and indirect tax in Nepalese economy, Tax on capital (Tax on land, land transfer, motor vehicle, house and land tax). Income year and assessment year, difference between withholding and final withholding payment, exempt amount, exempt organization, differences of retirement fund, retirement contribution and retirement payment.

2. Historical knowledge of income tax law in Nepal (4 LHs)

  1. Business
    1. Business, Profit and Remuneration Tax Act 2017, Nepal income Tax Act 2019, Income Tax Act 2031, Income tax Act 2058, Income Tax Rules 2059.

3. Corporate Income Tax (12 LHs)

  1. Introduction and Development of corporate income tax
    1. Introduction and Development of corporate income tax
  2. Exemptions
    1. Exemptions, concessions, reduction, deductible and non-deductible expenses, tax credit, rebates, tax Rates and set off loss, treatment and carry forward of losses, inter-source and inter-head adjustments within country and outside country
  3. Tax exempted institutions
    1. Tax exempted institutions
  4. Tax deduction at source and its treatment
    1. Tax deduction at source and its treatment
  5. Computation of assessable income
    1. Computation of assessable income, taxable income and tax liability under business other than proprietorship firm,. Total taxable income and total tax liability.

4. Customs Duties (4 LHs)

  1. Introduction and evolution of Customs
    1. Introduction and evolution of Customs
  2. Import and export procedures
    1. Import and export procedures
  3. Provisions regarding Jhitigunta
    1. Provisions regarding Jhitigunta
  4. Classification of commodities under harmonized system
    1. Classification of commodities under harmonized system, valuation system, customs tariff (Tax Rate Structure), exemptions, fine and penalties and appeal
  5. Customs administration
    1. Customs administration, Bonded warehouse, Automated System for Customs Data (ASYCUDA), WTO customs valuation system.

5. Excise Duties (4 LHs)

  1. Introduction and evolution of excise
    1. Introduction and evolution of excise
  2. Classification of excisable products
    1. Classification of excisable products
  3. Obtaining of license and its termination
    1. Obtaining of license and its termination
  4. Determination of factory price
    1. Determination of factory price
  5. Physical control system
    1. Physical control system
  6. Method of excise Assessment
    1. Method of excise Assessment
  7. Recovery ratios, exemptions, fines and penalties
    1. Recovery ratios, exemptions, fines and penalties.

6. Concept of Tax Planning and Tax Management (4 LHs)

  1. Concept of tax planning, tax management and scope and significance
    1. Concept of tax planning, tax management and scope and significance
  2. Tax evasion, tax avoidance, tax delinquency
    1. Tax evasion, tax avoidance, tax delinquency
  3. Difference between tax planning and tax evasion
    1. Difference between tax planning and tax evasion, Tax planning and tax avoidance and tax planning and tax management (only theoretical explanation).

7. Capital Gain Tax (4 LHs)

  1. Concept of capital gain and capital gain tax
    1. Concept of capital gain and capital gain tax
  2. Computation of capital gain on disposal of depreciable assets
    1. Computation of capital gain on disposal of depreciable assets, business assets, non-business chargeable assets
  3. Provisions for adjustment and carry-forward of capital loss
    1. Provisions for adjustment and carry-forward of capital loss, Applicable tax rates for individual and entities (with numerical examples)

8. Penal Provision, prize and other incentives (5 LHs)

  1. Concept of penalty and offence
    1. Concept of penalty and offence
  2. Provision of interest for underestimating tax payable by installment and delay or fail to…
    1. Provision of interest for underestimating tax payable by installment and delay or fail to pay tax. Provision for fee charge for failure to maintain documentation or file statements or returns of income, for making false or misleading statements, For aiding or abetting or inducing another person to commit and offence, Provision for criminal offences for
  3. Failure to pay tax
    1. failure to pay tax, making false or misleading statement, authorized and unauthorized person, aiding or abetting, failure to comply with Act. Provision of prize and other incentive. ((With numerical examples)

9. Tax assessment and return of income (3 LHs)

  1. Concept of tax assessment
    1. Concept of tax assessment: Methods of tax assessment
  2. Self- assessment
    1. self- assessment, Jeopardy assessment/ best judgmental assessment and amended assessment. Concept of return of income: extension of time to final return of income: return of income not required. Procedures of online final return and E- TDS (use www.IRD. Gov.np).