KATHMANDU: The Supreme Court (SC) on Thursday ordered the Large Tax Payers Office (LTPO) not to collect capital gains tax from Ncell for the time being.
A single bench of Justice Bam Bahadur Shrestha ordered both the plaintiff and defendant to be present before the court for discussion after hearing a writ filed by the privately-owned mobile network operator.
The court ordered to put the tax collection process on hold until the discussion.
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 the SC’s verdict and contravenes Income Tax Act, 2002.
Ncell, in the written petition, said, “The decision taken by LTPO on April 16 contravenes the spirit of the Supreme Court’s verdict and violates the constitutional norms.”
Ncell has also claimed that office should have informed it about the amended tax prior to imposing the tax on it.
Ncell has urged LTPO to scrap its decision as it was taken without taking the legal provision into consideration, arguing that the company should be made liable to pay the additional interest due to the mistake of the tax office.
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