Banking Exam Question - What is Threshold in VAT? What are the Provision of Threshold in Nepal? Explain

Introduction - Threshold Provision in Nepal

What is Threshold under Value Added Tax (VAT)? What is the purpose of threshold and what about the threshold in Nepal? Mention

Even if the value of increase in value-added goods and service is to increase the value of small businessmen

The purpose of Threshold

• To enforce the cost of increase in value-added tax to small businessmen, tax exemption,
• To reduce the costs of taxpayers and tax administration,
• To pay attention to the pay tax administration of the big taxpayer,
• Due to small businessmen unable to complete the process of tax enhancement, they should keep the tax exemption tax out,

Threshold system in Nepal

The following traders in Nepal should have a mandatory register for the increase in value and less than that should not have to be compulsory registered for the increase in price increase.

1. Annual turnover in local business More than 50 lakhs, (Rs 20 lakhs from Rs. 2072/73 to Rs. 5 lakhs earlier)
2. Rs. More than one million,
3. For professional purposes, Rs. If you spend more than 10 thousand taxable goods and services,