Tribhuvan University
Faculty of Management
Office of the Dean
Bachelor of Business Management (BBM)
Course Description
:This course covers introduction of taxation that covers sources of financing in Nepal, direct and indirect tax and different basic terms use d in tax act. It also incorporates corporate inc ome tax that covers all required items related to computation of tax liability of any types of entitie s. Similarly it covers customs duties, excise duties tax planning, capital gain, panel provision and tax assessment and return of income.
Course Objective
:The course aims to impart the knowledge of general principles and practices of taxation in Nepal and develop in them the fundamental skills required to solve pract ical problems regarding direct and indirect taxation with basic knowledge of tax planning and tad administration. Course Description: This course covers introduction of taxation that covers sources of financing in Nepal, direct and indirect tax and different basic terms use d in tax act. It also incorporates corporate inc ome tax that covers all required items related to computation of tax liability of any types of entitie s. Similarly it covers customs duties, excise duties tax planning, capital gain, panel provision and tax assessment and return of income.
Course Contents:
Lecture hours show the approximate classroom time allocated to each unit.
Unit 1. Introduction
- Concept and definition of tax
- Sources of financing in Nepal
- Difference between Tax, duty, charge and fee
- 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 be tween withholding and final withholding payment, exempt amount, exempt organization, differences of retirement fund, retirement contribution and retirement payment.
Unit 2. Historical knowledge of income tax law in Nepal
- Business, Profit and Remuneration Tax Act 2017, Nepal income Tax Act 2019 , Income Tax Act 2031, Income tax Act 2058, Income Tax Rules 2059.
Unit 3. Corporate Income Tax
- Introduction and Development of corporate income tax
- 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
- Tax exempted institutions
- Tax deduction at source and its treatment
- Computation of assessable income, taxable income and tax liability under business other than proprietorship firm, . Total taxable income and total tax liability.
Unit 4. Customs Duties
- Introduction and evolution of Customs
- Import and export procedures
- Provisions regarding Jhitigunta
- Classification of commodities under harmonized system, valuation system, customs tariff (Tax Rate Structure), exemptions, fine and penalties and appeal
- Customs admini stration, Bonded warehouse, Automated System for Customs Data
- (ASYCUDA), WTO customs valuation system.
Unit 5. Excise Duties
- Introduction and evolution of excise
- Classification of excisable products
- Obtaining of license and its termination
- Determination of factory price
- Physical control system
- Method of excise Assessment
- Recovery ratios, exemptions, fines and penalties.
Unit 6. Concept of Tax Planning and Tax Management
- Concept of tax planning, tax management and scope and significance
- Tax evasion, tax avoidance, tax delinquency
- Difference between tax planning and tax evasion, Tax planning and tax avoidance and tax planning and tax management (only theoretical explanation).
Unit 7. Capital Gain Tax
- Concept of capital gain and capital gain tax
- Computation of capital gain on disposal of depreciable assets, business assets, non -business chargeable assets
- Provisions for adjustment and carry -forward of capital loss, Applicable tax ra tes for individual and entities (with numerical examples)
Unit 8. Penal Provision, prize and other incentives
- Concept of penalty and offence
- 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 st atements or returns of income, f or making false or misleading statements, For aiding or abetting or inducing another person to commit and of fence, Provision for criminal offences for
- 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)
Unit 9. Tax assessment and return of income
- Concept of tax assessment: Methods of tax assessment
- 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).
Suggested Readings:
Nepal Government. Income Tax Act 2058 with amendments. Kathmandu: Ministry of Law, Justice and Constituent Assembly Nepal Government. Income Tax Rules 2059 with amendments. Kathmandu: Ministry of Law, Justice and Constituent Assembly Nepal Government. Customs Duty Act 2064 with amendments. Kathmandu: Ministry of Law, Justice and Constituent Assembly Nepal Government. Exercise Duty Act 2058 with amendments. Kathmandu: Ministry of Law, Justice and Constituent Assembly Dhakal, K.D., Bhattarai, I, Koirala, G.P., & Bhattarai, R. (Updated Edition). Corporate Taxation with Tax Planning, Kathmandu: Asmita Publication Regmi, G. N., & Bharati, C. B., (Updated Edition) Corporate Taxation, Kathmandu: KEC publication. Sapkota, P. P., & Sharma, J. (Updated Edition). Corporate Taxation in Nepal, Kathmandu: dreamland publication. Lekhi, R.K. (Updated Edition). Public Finance, New Delhi: Kalyani Pbulishers Prasad, B. (Updated Edition). Direct Taxes: Laws and Practice, New Delhi: Vishwa Prakashan. Singhaniya, V.K. (Updated Edition). Direct Taxes: Laws and Practice, New Delhi: Taxman Publication Pvt. Ltd.