Registration is compulsory and voluntary should be submitted at the time given below;

*TrimesterlyTrimester (Quarterly)

• From Shrawan to Kartik should be filed within 25th Mangsir.
• From Mangsir to Falgun should be filed within 25th Chaitra.
• From Chaitra to Ashad should be filed within 25^th

*Monthly

• It should be submitted in one-month details
• It should be submitted every 25th of next month.
• Example: The details of the month of Shrawan should be submitted to 25^thbhadra

Note: As per the current practice of IRD, new taxpayers are mostly registered in a monthly filing system.

Procedure for VAT Return filling.

• Log in to ird.gov.np
• Click on the taxpayer portal on the home page
• Then click on VAT in the menu
• Then click on VAT return entry
• Boxes Asking for information related to PAN, Username, password will appear fill in the details & click on register

• After registration new page will appear giving Submission number save the submission number & Click on the proceed option.
• A new page asking multiple questions will appear fill in the page one by one starting with FY, Monthly/Quarterly/six-monthly & the month of which the return is filed.

• Before filing this return we should calculate the total amount of purchases, sales, imports and exports so that the return can be filed easily.
• Scroll below the page and fill in all the details asked such as:
  Sales Details
  • Taxable Sales & VAT on sales
  • Export Sales ( If any )
  • Tax exempted Sales ( If any )

  Purchase Details

  • Taxable purchase & VAT on Purchase
  • Taxable Import & VAT on import ( If any )
  • Non Taxable purchase ( If any )
  • Non Taxable Import ( If any )

• After filling in all the details check the total amount of VAT payable /receivable
• There is an option below the total taxable amount as “last year’s credit”. If we have last year’s credit, fill the box with the credit amount after that if VAT payable comes then we should pay the same amount to the tax office if receivable/credit balance comes then we don’t have to pay the amount, balance credit will be transfer to next month.

**Note: Credit amount means “Excess Amount of VAT paid Till Last month”

• If VAT has to be paid for the month then after paying the VAT amount Voucher Number & VAT Paid amount should be shown on the box asked.
• After that next step is to fill several Sales bills & purchase bills.
• At last, after filling in all the details, click on the box next to “I will verify that the information mentioned in this tax statement is true” at the end of the Page.
• Then Press save below
• Then press submit and click Verify
• Fill in the page PAN number and password and if there is a due amount between months then add it and click ok, a new box saying Verified Successfully.

*IMPORTANT NOTE*

• For auto verification, the taxpayer should take a General login username & Password from the tax office.
• If the detail of VAT submission is filled in at a date later than the prescribed date then a penalty of 0.05% of the tax amount or Rs.1000 per month whichever is higher along with the return.

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Tax deducted at source (TDS) means the process of collecting tax from the source of income. TDS is not a separate or new form of tax, but a mode of collection on a current income basis. It is collected not to make a burden to taxpayers during the time of tax filing. The process of filling TDS, through the means of electronics, is known as E-TDS.

Following procedures should be followed for E-TDS filing.

1. 1. Go to the www.ird.gov.np
   2. Click on the taxpayer portal
   3. Expand E-TDS by clicking on the “+” sign of E-TDS.
   4. Click on E-TDS. (Now, one form will appear for the submission number)
   5. Fill all the required information in the form. (Note.: * sign is mandatory)
   6. After filling then click on register and note the submission number.
   7. Click on “ट्रानजाकसन भर्ने” then another form opens.
   8. Fill in the following information in the opened form. a. PAN No. of liable person who is liable to pay TDS.
      b. Withholder’s Name is automatically displayed if PAN is entered or if PAN is left blank then enter the name of the taxpayer.
      c. Click on B.S. or A.D. for the date.
      d. Enter the Date in “YYYY.MM.DD” format.
      e. Enter the total taxable amount.
      f. Enter the TDS amount which you have already calculated.
      g. Click on TDS type in which subject TDS is to be paid e.g. Rent TDS, Salary TDS etc.
      h. Click on “Add” to add the record.
      i. Repeat these steps until all record is entered.
      j. When all data is recorded then click on Save.
      j. If data is in Excel format then click on “Load Excel file” upload the Excel file and click on “Save records on Excel file” to save the Excel file.
   9. When all the TDS detail is entered voucher information should be filled. So, click on “भौचर भर्ने फारम” then please follow the following procedure.
      
      a. Tax deducted code number.
      b. Voucher number or cash receipt number
      The voucher number should be generated first
      * Go to General
      * Payment Voucher search
      * Fill the three boxes in the form voucher number, date & Amount from the Tax deposited voucher
      * Select ‘Search’After selecting search just below Voucher information will appear in the 3rd Colum new Voucher Number will be generated. As shown in the picture below:
      c. The payment type may be cash or bank (if paid at the Bank counter then select Bank).
      d. Date Format “YYY.MM.DD”
      e. Name of the bank if payment is made from the bank, if payment is made through cash name IRO or TSO.
      f. Branch Name of IRO
      g. TDS Amount/Voucher amount.
      h. Then click on Add ButtonWhen every step is completed click on the submit button on the previous 1st page.

   Note I: In the above picture in Voucher Reconcile Column should show Reconciled if Not Reconciled is shown then while filing the return some mistake has been made and it has to be rechecked.
   After submitting E-TDS final step is to visit the Tax office & verify the filed return until & unless we verify from the tax office process is not completed. We should take the submission number & tax-paid voucher to the tax office and request for verification.

2. Note II
   * To edit the transaction click on the “Green Edit Icon.”
   * To “Remove” the transactions click on the “Red Minus icon.”
   * To save the list of transactions to an Excel file click on “Save records to EXCEL file”
   * To save the list of transactions to an XML file click on “Save records to XML file.
   * To clear the field click on the “Reset” button.

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Financial management is a process of proper utilization of the funds invested in an organization by planning, organizing, controlling and directing financial activities of any organization, like budgeting, management of funds, determining the sources of funds, allocation of funds, cash management & financial control, etc. And the process of implementing the financial activities in the best possible way.

Some of the good financial management practices are briefly described below:

Planning

The first and foremost work to be done is planning. We must precisely define our objectives and identify and quantify available and potential resources.

Budgeting

Budgeting is the process of prediction or estimation of Revenue & Expenses for the upcoming period more often for the financial year. Budgeting helps in identifying areas that incur the most operating costs, or exceed the budgeted cost. It also helps organizations function with financial efficiency & reduce wastage. And most important part of budgeting is ensuring sufficient liquidity to cover operating expenses.

Financial Controls

Financial control is the process & rules of utilizing available resources & identifying financial risks and minimizing those risks in the right way, in the right place at the right time. There are many techniques for financial control: Ratio Analysis, Cost Management, Profit and Loss Control & Financial Forecasting, etc.

Accountability

Accountability means bearing duties and responsibilities by the accountable person effectively otherwise he/she will be answerable. It is very important to bring smoothness and effectiveness to financial management practices.

Payment of tax at the right time

Government tax should be paid at the right time. A firm shouldn’t be delayed in paying tax otherwise fines will be charged.

Make a separate account between business & personal accounts

There should be a separation between personal and business accounts. Don’t do any personal transactions in a business account. It is important because it helps to identify the company’s actual profit and loss & reduces confusion and makes a clear account.

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