Ace institute of Management

Course : Business tax planning in Nepal-2079(New)

Credit : 2

Course objectives

This course aims to provide the students with the knowledge of tax laws and tax planning in Nepalese
contest. The course shall provide the student general ideas of the prevalent taxes in Nepal and how
taxes are computed. The course shall be mainly focused on income tax, value added tax and tax
planning.

Course content.

1. Conceptual foundation
Meaning of tax, Objectives of tax, cannons of taxation, types of tax, and related terminologies
related in tax, Classification and status of tax payer.
2. Tax exemptions,Concessions,deductions ,Tax rates, Tax credit and presumptive taxation
Exempted income, Tax rates, exemption, tax rebates, Tax rules, expenses not allowed for
deductions, business concession, treatment of provisions related to deductions and reductions,
tax deduction at source,
3. Income tax.
Sources of income , Computation of assessable income ,taxable income and tax liability under
employment income ,business income ,investment income ,provision for depreciation, set off
and carry forward of losses ,residential status .

3. Value added tax

Meaning of VAT, Taxable transactions, tax exemption, tax deduction and refund, tax invoice, tax
calculation, tax registration, fine and penalties.

4. Tax planning Concept

Concept of tax planning, Significance of tax planning, tax evasion, tax avoidance and tax planning.

5. Tax planning for various payments and activities.

Remuneration payment, self employment, capital structure, location of industrial set up, timing
of activities.

Text book and references.

1.Lamsal.D.L.(2022),Corporate taxation in Nepal,Kathmandu,Kriti publication.
1. Income tax act and value added tax: text book By Bhaba Nath Dahal
2. Income tax act 2058
3. Income tax rules 2059
4. Value added Tax Act 2052
5. Value added Tax rules 2053
Session Plan

Sessions Topics

Conceptual foundation

Meaning of tax, Objective of tax, Canons of taxation, types of tax, definition of

1
related terms

Introduction to Income Tax in Nepal

Income Tax Accounting Methods

Residential Status, Exemptions, Concessions, Facilities and Tax rates

2 Disallowed Expenses

Income Tax Heads and Sources

Tax Deduced at Sources (TDS)

3 Provision for depreciations,

Income from Employment

4,5,6
Rules and Computations

Income from Business

7,8,9
Rules and Computations

Income from Investment, Set off and carry forward of Losses, Capital gains
10,11
Rules and Computations

Income Tax Return and Tax Assessment, Tax Authorities, Penal Provisions
12

Project, Presentation and Internal Test

13 Value Added Tax:

Meaning, Types and brief History

 Features of Value added tax

Objective and Role of Value Added Tax

Computation of VAT, Records to be maintained for VAT and submission of

VAT return.

Class test and discussion session and Quiz

Introduction to tax planning

Tax evasion, tax avoidance and tax planning

14 Tax planning for various payment and activities

Remuneration payment, self employment, capital structure, location of industrial

setup, timing of activities

Discussion session, Exam preparation revision class and Feedback and trimester
15,16
end reflection.

Note: Each session is of 3 hours and assignments shall be given on the topics covered in every
class.

Evaluation Plan

Component Weight (%)

Classroom Attendance/Class 5
performance
Numerical Assignments 20

Class Test/Quize/Mid- term 10

Exam
Project Work and Presentation 10
Case analysis and report 15
End Term Examination 40