Banking Exam Question - What is Value Added Tax (VAT)? What are it's Features, Important & Present Scenario of VAT in Nepal?

Introduction - Value Added Tax (VAT) in Nepal

Increase in the value of goods and services increases the value of rising value to the value added. This is the difference between the price and sales price of the goods and services. It is a form of improvement in sales. This is indirect tax. This is based on modern accounting. Tax bargain and tax return are the key features of this tax. This tax has been taken in the form of a major basis in Nepal. This tax is available in Nepal. 2054 is applicable from December. On December 1, the value of the increase in the value of value tax was given to the VS. It has been celebrating as a national tax day since 206 years. The current rate increase tax rate is 13%. In order to organize this tax in Nepal, the Value Added Tax, 2052 and Value Added Tax Manual, 2053 has been implemented.

Some important aspects about value added tax

• In 1919, Dr., Germany's economist. Wilholm Simmons had rendering value added.
• It was first used in the world in 1914 by France.
• Pakistan used it first in the SAARC nation.
• V. S.N. dismissed by making immediate hotel tax, contract tax, sales tax and entertainment tax. This tax is applicable in Nepal from December 1,
• In more than 150 countries, the value is used to increase the value of tax in the world.
• There are three types and types of tax enhancement by total production, income and consolidation. Of this, Nepal has adopted consumption patterns.
• It is the method to calculate the value of the value by increasing the method of method, decrease method and the tax cut method, with 3 methods. There is an arrangement for tax tax using Katy method in Nepal.
• There are two basic principles of origin theory and destination principles. Out of these, the destination theory is in use. Which deals with the taxable and the service where the service is consumed. According to this principle, all taxable goods and services that are consumed in Nepal, the taxable goods and service to be exhausted is the convenience of zero.
• There are 3 rates in the rate of increase in price, multiple rates and zero rates. Single rates and zero rates are in practice in Nepal. VS in Nepal Single rate of 10 percent was raised from December 1, 2010. A single rate of 13 percent has been set from January 2061. In order to organize this tax in Nepal, the value added tax, 2052 and price enhancement tax rules, 2053 has been implemented and even by doing this, Nepal is not yet fully systematically organized.