D02 Tax Return Filing: Turnover Based Taxation
Tax Liability Is Calculated As A Predetermined Tax % Of Yearly Business Turnover.
व्यावसायिक विवरण
करको गणना
| क्र.स. | विवरण | आयमा समावेश हुने रकम (रु) | करको दर | लाग्ने कर / शुल्क / ब्याज (रु) |
|---|---|---|---|---|
| 1 | श्रेणी १: Turnover up to Rs. 30 lakhs | N/A | ||
| 1.१ | श्रेणी २: Goods at commission | 0.3% (Above 50 Lakhs), 0.25% (30 Lakhs to 50 Lakhs) | ||
| 1.२ | श्रेणी ३: Other Goods (Other than mentioned goods in 1.1) | 1% | ||
| 1.३ | श्रेणी ४: Other Goods (above 50 lakhs) | 0.8% | ||
| 1.४ | श्रेणी ५: Services | 2% | ||
| 2 | लागत १ (१ + १.१ + १.२ + १.३ + १.४) | |||
| 3 | सम्à¤ावित ब्याज (रु ५०५ प्रति आर्थिक वर्ष) | |||
| 4 | कुल (२ + ३) | |||
D02 Entry Eligibility & Conditions
Taxpayer has to understand that not everyone is eligible to be taxed under this method of tax assessment. Only the person fulfilling all the conditions stated below is eligible to be taxed under Turnover Based Taxation:
- The person shall be a Resident Natural Person.
- The person has to derive income only from the operation of business having a source in Nepal in that income year.
- The turnover/total income of the business for the income year shall exceed Rs. 30 Lakhs but not exceed Rs. 1 crore.
- The taxable income from the business shall not exceed Rs. 10 Lakhs.
- The person may or may not be registered for VAT.
Benefits of Turnover Based Computation
- No invoices of expense and other deductible expenses are to be kept for tax purposes.
- Complex detailed tax computation is not required.
- Business person can give more time for business improvement.
Amount of Tax to be Paid
Schedule 1 Section 1.17 of Income Tax Act 2058 states the amount of tax to be collected from such taxpayers as below:
| SN | Yearly Turnover | Amount | Method |
|---|---|---|---|
| 1 | Turnover up to Rs. 30 lakhs | Presumptive Taxation Method | |
| 2 | If a person sells goods at commission or value addition up to 3% of purchase price including cigarettes, gas | 0.25% of turnover exceeding Rs. 30 lakhs to Rs. 50 lakhs | 0.3% of turnover exceeding Rs. 50 lakhs to 1 crore |
| 3 | If a person deals in goods other than specified as above (SN No. 2) | 1% of turnover exceeding Rs. 30 lakhs to Rs. 50 lakhs | 0.8% of turnover exceeding Rs. 50 lakhs to 1 crore |
| 4 | If a person deals in services | 2% of excess turnover |
