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 36 field offices
throughout Nepal including 1 Large Taxpayers Office, 22 Inland Revenue Offices and 13 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
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
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.