A Study on Analysis of Value Added Tax System
By

Ajay Dongol
P.U. Reg. No. 2007-2-03-0176 Roll. No. 831455

A Summer Project Submitted to:

Ace Institute of Management Pokhara University

In Partial fulfillment of the requirements for the degree of Bachelor of Business Administration

New Baneshwor Kathmandu December, 2009

i

ACKNOWLEDGEMENT

I would like to express my gratitude to Ace Institute of Management along with Mr. Prakash C. Bhattarai, our course instructor for providing us the opportunity and supervising us to carry out the Summer Project. I would also like to thank Inland Revenue Department, Lazimpat for providing me with the time and necessary materials that helped me complete this project.
4 Introduction to VAT in Nepalese context ........................................................ 5 Importance of VAT .......................................................................................... 5 History and Development of VAT .................................................................... 7 Basic Features of Nepalese VAT system ........................................................ 10 Areas covered by VAT in Nepal ..................................................................... 10 Types of VAT .................................................................................................. 11 Registration (VAT Act 2052: sec 10) .............................................................. 12

2.1.1 2.1.2 2.1.3 2.1.4 2.1.5 2.1.6 2.1.7 2.1.8 2.2

Conceptual Framework ......................................................................................... 14

RESEARCH METHODS ............................................................................................................ 15 3.1 3.2 Study Area ............................................................................................................. 15 Research Design .................................................................................................... 15

iii 3.3 Nature and Source of Data