Nepal Open University

Faculty of Management and Law

Office of the Dean
Final Exam-2077
Programme:-Bachelor of Law (LL.B.) Full Marks: - 50 Marks
Year: - First Pass Marks: 23 Marks
Subject: - Taxation Law (LWTAX-307) Time: 1 hr. and 30minutes

Group A- Comprehension Questions

Attempt Any Three Questions given below. (3x5=15)

1. What are the major Head of Income taxes in Nepal?

2. What do you mean by Tax Exempted Institutions in Nepal? Write its name?
3. Describe briefly about House Rent Tax system of Nepal.
4. Explain the Appeal legal provision in Nepal against the Tax assessment decision.
5. Distinguish between Carry forward of loss and Carry backward of loss with suitable
example.

Group B- Critical Answer-questions

Attempt any TWO questions given below. (2x10=20)

6. Define the term "Assessment and Reassessment of Tax". Discuss the legal provisions related
with "Assessment and Reassessment of Tax" in Nepal.
7. Discuss the legal provisions related with Property Exemption from Tax by Local
Government of Nepal.
8. Write the Facts, Issues and Ratio of Thula Kardata Karyalaya Harihar Bhawan vs. Prime
International Pvt. Ltd., NKP 2069, No.11, Dec. 8914, P 1586

Group C- Situation/Cases Analysis

9. Read the following legal situation/case and answer the questions that follow. (3x5=15)

The Board of Directors of the Corporation has decided to retire the employees who have
completed more than 15 years of service as a package of Golden Handshake Scheme after
receiving the applicants. We, (the petitioners,) have filed a writ petition in the Supreme Court
seeking the order of the Supreme Court to reverse the order and return the amount. In order to
levy only 10 percent tax, an order was also issued to return the tax deductions who have deducted
15 percent more than stipulated in the law. After the order of the Supreme Court dated
2076/12/15, the Department of Inland Revenue has sent the amount of Rs.3234737/ the main
demand of the writ petition is to issue an order to return the entire amount deducted from the
retirement fund including the amount deducted under the Golden Handshake and the interest till
the day of repayment.

It is the right of a person to seek legal redress in case of non-compliance with legal
provisions. This does not mean that law enforcement agencies can deviate from their primary
obligation to follow the law. As the petitioners did not mention interest in the writ filed earlier in
this court and the final order in this regard was not uttered by this court, it means that the
petitioners will not get refundable interest as per clause (b) of the same section 113 (6) as per
section 113 (6) of the Income Tax Act, 2058. It seems to be against the legal system. In such a
case, the interest rate will be refunded at the normal rate as per the law from the date of
submission of the amount deducted by the applicants to the date of refund of the amount.

Questions
(a) Find out main Issues and demand to file a writ petition of the Supreme Court of Nepal?
(b) Who filed the writ petition and how much amount demand of repayment in the writ
Supreme Court of Nepal?
(c) What is the Legal right and remedy of the retirement fund including the amount
deducted under the Golden Handshake and the interest till the day of repayment?

Good luck!