KATHMANDU, Aug. 6: The Inland Revenue Department (IRD) has urged all consumers and entrepreneurs to compulsorily obtain and issue invoices when purchasing and selling goods and services.
Issuing a public notice, the IRD has requested the general public to develop a culture of obtaining and issuing invoices when transacting goods and services. The IRD also reminded that a taxpayer incentive program is being run with the aim of increasing tax compliance and encouraging the recording of actual transactions.
IRD clarifies that the new income tax provision on shares will...
“Since a purchase invoice is mandatory to participate in the program and receive prizes, consumers will have to obtain a purchase invoice when purchasing goods and services,” reads the notice, adding that businessmen who have been operating businesses without a Permanent Account Number (PAN) should immediately obtain a PAN and join the tax system.
The IRD has expressed its belief that making the practice of obtaining and issuing invoices effective will make the tax system transparent, help in recording actual transactions, and develop a culture of voluntary tax compliance among taxpayers.
