Taxation Skills are one of the most required skills for accountants. Mainly because accounting and taxation go side by side and deeply interlinked with each other in corporate world that one can not be separated from the other. Hence, as an accountant you need to understand how taxation system works, it’s computation, compliance and return filing skills in order to grow excel and grow in your career.
In this blog we have mentioned 5 such tax return filing techniques needed for an accountant to carry out managerial functions properly. Let’s start with the most common, VAT Return Filing:
1. VAT Return Filing
In Nepal, every VAT Registered Businesses must file a VAT Return either monthly or every four months, depending on their transaction in last fiscal year. Businesses having transaction more than Rs. 1 Crore is needed to file monthly VAT Return within 25th of the next month. VAT Return is essential for tax compliance as it helps tax officials see how much tax you’ve taken in from sales and how much you’ve paid on what you bought for the business.
Process to Filing VAT Return
Step 1. Visit http://ird.gov.np
Step 2. Select Taxpayer Login
Step 3. Select “VAT” option.
Step 4. Select “VAT Return Entry”
Step 5.Fill Login Information
Step 6.Fill Details in VAT Return Form
Step 7.Submit and Verify
Step 8.Print the verified VAT Return
2. ETDS Filing
Every business in Nepal, including NGOs, is required to deduct, deposit and file an Tax Deducted at Source report commonly known as ETDS Filing. This submission should be made by the 25th of the succeeding month on which the invoice for the given transaction is raised. To file an ETDS return you require a comprehensive list of transactions where Tax Deducted at Source (TDS) is applicable, ensuring accurate reporting and compliance with tax laws.
Process of ETDS Filing
Step 1. Visit http://ird.gov.np
Step 2. Select Taxpayer Login
Step 3. Select “E-TDS” option
Step 4. Fill Login Information
Step 5. Select ” ट्रान्साक्सन भर्ने ” option
Step 6. Fill Details in E-TDS Return Form
Step 7. Enter TDS payment details on ” भौचर भर्ने ” option
Step 8. Save, Submit and Verify
Step 9. Print the verified E-TDS Return
3. Income Tax Returns (D1, D2, D3)
Process to file D1, D2, D3 Income Tax Returns
Step 1. Login http://ird.gov.np
Step 2. Click Taxpayer Portal and Choose D1, D2 or D3 depending upon factors discussed above
Step 3. Fill the required information like username and password
Step 4. Get the submission number
Step 5. Enter the financial information like sales, purchase and many other details as required
Step 6. Review and reconcile with Financial Statements
Step 7. Submit the Document
*Please note that it is highly recommended to get assistance from your external auditor while filing the Income Tax Return.
4. Estimated Tax Return
Process to file Estimated Tax Return
Step 1. Login http://ird.gov.np
Step 2. Choose Taxpayer Portal.
Step 3. Choose Estimated Return Entry.
Step 4. Fill Required Company Information.
Step 5. Enter details regarding estimated profit calculation for the year.
Step 6. Save, Submit and Verify Estimated Return
5. File Tax Extension
For the fiscal year 2080-81, the Inland Revenue Department (IRD) has clarified that all entities with zero transactions during the year, as well as D1 and D2 tax filers, must submit their tax returns by the end of Asoj. Similarly, businesses with transactions up to Rs 25 Crores are required to file their tax returns by the end of Mangsir. For all other taxpayers, the deadline to file the Income Tax Return is Poush 20th.
Process to File Tax Extension:
Step 1. Visit https://ird.gov.np/
Step 2. Go to General > Taxpayer Login
Step 3. Enter your PAN & Password
Step 4. Click on “Request For Filing Date Extension”
Step 5. Enter Finance Year as 2080-81, Extension Date and Reason
Step 6. Click “Save” or “Submit”
Conclusion
In short, for accountants in Nepal, knowing about different taxes like VAT, ETDS, Income Tax, and Estimated Tax is important. The website ird.gov.np helps a lot with this. It’s key to make sure that taxes are filed on time and done right. Usually Tax Return Due Dates are not extended commonly in Nepal. So, it’s always better to do things early. Good handling of these taxes is important for accountants to help their businesses.
How to Learn Advanced Accounting and Taxation Skills from Khata Business Academy?
Khata Business Academy offers three interactive online courses that can help you learn and prepare Tax Returns, Financial Reports including Balance Sheet, Profit & Loss, Cash Flow and Financial Projections:
Business Taxation Course
You can learn Income Tax Computation and VAT & TDS Return Filing process along with in-depth concepts and case studies. You can also practice with live templates and calculate Fines as well as Penalties. Recommended for Fresher to Experienced Accountants.
You can access the course through this link: https://khataacademy.com/np/courses/business-taxation-course/
Financial Reporting Course
This course covers the basics of financial statement preparations. You will learn how to prepare Transactional Reports, Taxation Reports, Financial Reports, and Projection Reports. Recommended for accountants with 1-3 years of experience.
You can access the course through this link: https://khataacademy.com/np/courses/financial-reporting-course/
NFRS Based Accounting
This course covers the concepts, implementation, and reporting framework under Nepal Financial Reporting Standard (NFRS) based on IFRS. NFRS is being implemented in Nepal from FY 2080-81 onwards. Recommended for Account Managers.
You can access the course through this link: https://khataacademy.com/np/courses/nfrs-for-accountants/
All of these courses are taught by experienced Chartered Accountants and are designed to help you gain the skills and knowledge you need to succeed in a career in accounting. Come, join the KBA Family of Accountants.
