KATHMANDU, April 26: The Supreme Court on Thursday issued a short-term stay order on a petition filed by telecommunication company Ncell Private Limited questioning the assessment of the capital gains tax (CGT) done by Large Taxpayers Office (LTO) to be paid by the Ncell to the government. This means Ncell will not have to pay the taxes sought by the LTO until the court issues its final verdict on the petition.
A single bench of justice Bam Kumar Shrestha issued the short-term stay order and summoned the government authorities — the Office of the Prime Minister and Council of Ministers — to the Supreme Court on May 7. After hearings, the apex court will decide whether or not to continue the stay order.
The telecommunications service provider had filed the petition at the SC on April 22 claiming that the LTO's tax assessment was erroneous.
On April 17, the LTO had calculated the tax amount of Ncell buyout and asked the company to pay the remaining CGT amounting to Rs 39.06 billion, which includes interest and fine, within seven days.
Previously, the apex court had concluded that the Ncell and Axiata should pay the CGT and had asked the LTO to assess the tax within three months.