KATHMANDU: Giving a tax exemption to Ncell, the Supreme Court (SC) has ordered the private telecommunication company of Nepal to foot only Rs 21.1 billion as capital gains tax.
Making public the full text of the order made in August, the apex court asked the Large Tax Payers Office (LTPO) to collect Rs 21.1 billion in tax. A late fee will be added to it, SC ruled.
The court gave an exemption of Rs 18 billion to the company. Ncell has already paid Rs 23 billion tax.
Putting an end to the row between Ncell and the Large Tax Payers Office (LTPO), the apex court on August 26 had annulled the LTPO’s decision to collect Rs 62.6 billion capital gains tax. Out of the determined tax, Ncell was due to pay Rs 39 billion.
Advocate Ramesh Ghimire on behalf of Ncell had filed a writ at the apex court on May 8 demanding the court’s order to waive the tax determined. The writ had argued that Rs 14 billion should be determined as tax.
Ncell had moved the court after LTPO maintained that Rs 39 billion 668 million 481 thousand and 571 should be paid in revenue in line with Section 101 of Income Tax Act, 2002. Ncell has vehemently stated that the amended tax rate is against SC’s verdict and contravenes Income Tax Act, 2002.
The case was heard by a broader full bench of the apex court comprising Justices Tej Bahadur KC, Purusottam Bhandari, Dambar Bahadur Sahi, Puspalata Mathema and Dr. Manoj Kumar Sharma.
Justice Puspalata Mathema had registered a note of dissent.
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