Background     

Organizational Information

The Inland Revenue Department (IRD) is currently responsible for the enforcement of Tax Laws and administration of the following taxes: Income Tax, Value Added Tax, Excise Duty, Vehicle Tax and certain fee and duties like Entertainment fee (Film Development Fee), Special fee, etc. Likewise, the Department is also responsible for monitoring the non-tax revenue such as dividends, royalties etc. of the Government.

IRD carries out the following functions:
1. Tax Administration (Income Tax and VAT)
2. Tax Policy
3. Tax Payer Services
4. Registration, Revenue Collection
5. Tax audit
6. Tax Enforcement and investigation
7. Review & Appeal
8. Tax Refund
9. Advance Ruling
10. Tax Treaty and International Taxation
11. Excises and Liquor Administration
12. Monitoring of non-tax

IRD is centrally located in Kathmandu. There are 49 field offices throughout Nepal including 1 Large Taxpayers Office, 22 Inland Revenue Offices and 26 Taxpayer Service Offices. The previous Department of Taxation was established in 1960. IRD and its district offices are totally running on functional line. Major functions include Taxpayer`s Service, Audit and Collection.

TAXPAYERS RIGHTS AND ASSURANCES

In addition to the specific rights and assurances provided in the concerned Acts, taxpayers in general are assured of the following rights. These assurances will be strictly adhered to. The Taxpayers rights, among others, include:

A. Each taxpayer is treated with due respect and honor.

B. Each taxpayer will get an immediate receipt of return submission whilst a receipt of other correspondences is to be provided in ONE hour.

C. Each taxpayer willing to seek an advance ruling may apply either in the Department or through concerned Inland Revenue Office. There is a legal provision that a decision should be made within 45 days after the request is made.

D. Each taxpayer can represent or make any correspondence by an authorized person including legal assistants and the accounts specialist or auditors just in case if he/she is unable to represent or make any correspondence.

E. Each taxpayer is to get copies of the documents related with him/her or submitted to the IRO or documents or decisions affecting her/him generally in TWENTY FOUR hours of his/her request in the concerned IRO.

F. Each taxpayer is to get refund of his excess input tax (VAT) and other taxes. The exporter will get refund generally within 15 days in IROs and 30 days in IRD upon receiving application for refund.

G. Each taxpayer is to get certificate/renewal of Excise/Liquor business generally within TWENTY FOUR hour after the request is made.

H. Each taxpayer is to get sales and purchase books certified by the Tax Officer generally within TWENTY FOUR hours after the request is made.

I. Each taxpayer is to get initials of the Tax Officer on stock transfer or sales to the non-registrants generally within TWENTY FOUR hours after the request is made.

J. Each taxpayer is to get Permanent Accounts Number (PAN) or the Certificate generally within 3 days after the request is made, and

K. Each taxpayer is to get Tax Clearance Certificate generally within TWENTY FOUR hours after the request is made.
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