Sunday, December 11, 2011

Fine and Interest as per Nepal Income Tax Act 2058

chapter 22 Fine and Interest





records not kept and non submission of return


non submission of estimated returns (sec 95)



non submission of final return sec 96-self assessment


natural person

100 per month


other person

0.1 % of assesable income or Rs 100 per month whichever higher


if record not retained for 5 years

0.1 % of assesable income or Rs 1000 whichever higher


if monthly TDS return not submitted in time

1.5% of amount due for each part of month


if estimated tax paid as per sec 94 is below defined limit(80% of actual)

15% (general interest rate for each month upto date of return) on the difference amount


if tax not paid in time

15%(general interest rate for each month upto date of non payment)


false return filing


if non voluntary and by mistake

50% of the differential tax


if voluntary done with malafide intension

100% of differential tax


supporting for tax evasion

100% amount of evaded amount


For More Details




Paxton Accounting Consultancy


Thamel, Nepal


Tel :9771 4258070, 4249611


Penalty Provisions of Income Tax Act 2058

chapter 23 penalty of Nepalese Income tax Act 2058






No filing of tax returns

5,000 to 30,000

1 to 3 months

or both


False retrun filing

40,000 to 160,000

6 months to 2 years

or both


unsupportive role in tax department

5,000 to 20,000

1 to 3 months

or both


confidencial information leak by tax officer


one year

or both


tax collection by unauthorised persons

80000 to 240000

1 to 3 years

or both


supporting for tax evasion by other

50% of sentence to guilty of tax evasion



supporting for tax evasion by tax officer

100% of sentence to guilty of tax evasion


no compliance with any provision of Act

5000 to 30,000


For More Details




Paxton Accounting Consultancy


Thamel, Nepal


Tel :9771 4258070, 4249611


Strategic management CAPIII December 2011 question paper.


Maximum Marks - 100

Total No. of Questions - 7

Total No. of Printed Pages -2

Read the following and answer the questions accordingly:

ABC Battery Company was established in Kathmandu about 20 years ago. Its range of main products is Sun Battcry Moon Battery, Light Battery and Long batterv brands. Initially, the total investment made was Rs. 30 million out of which 79 percent was foreign direct investment of Indian Batten Company (IBC) and 21 percent was of local shareholders of Nepal. The average annual turnover was Rs. 80 million in 2007. Rs. 110 minion in 2009, and is expected to reach 130 million in 2011. It was making 30% profit on investment :n 20J0 and the trend shows gradual increment of profit for last 10 years. It was payng corporate and other taxes to the Government of Nepal. Currently 300 operation level staff are working^ and it is recognized as a reputed manufacturing firm of Nepal. The technology and management are handled by foreign _ investors as major shareholders. However. participation while making major decisions is common practice in the firm.

In order face competition, especially with Chinese Products available in cheap rate, the top management of the company, after portfolio analysis., decided to extend its .product and market so that per unit cost can be lowered and large share of market can be covered. Consolidation- product development, and market penetration strategies are being considered.

The company hired 50 new staff for manufacturing new brand of Batteries: Young Battery. Brave Battery, and Sun light Battery. The company has altogether seven different brands of products and needs aggressive marketing. It published vacancies in national newspapers, the Kathmandu Post and the Himalayan Times, for young and dynamic CEQ for effective strategy formulation and implementation. The company expects that the new CEO would craft proper strategy to gain competitive advantage "to become Leader in the industry.

In light of this scenario, answer the following questions:

  1. What are the major strengths and weaknesses of this firm'.' Discuss. ^'
    1. What strategies should the newly appointed CEO craft to achieve strategic advantage? Suggest the best strategy- tor this firm with sufficient logic,

    2 i What is strategic management? Discuss various levels strategy. 3+5=8)

    b) Compare an organization s mission with its objectives

  1. What steps need to be followed to identifv core competencies of a business firm?
  2. What are the various steps for internal analysis of a firm? 8 7

  3. Discuss various elements of the general environment.
    1. BCG portfolio matrix is a widely used tool to assess the suitability of strategy. Explain

    a) Define strategy evaluation. Discuss difficulties generally encountered in the process of strategy evaluation. (3+4=7)

    b) Explain portfolio analysis and illustrate General Electric Business Screen"

  4. What are the alternative directions of strategic options?
  5. Explain different techniques of strategic decision making