Supreme Court decision in favor of Ncell, dismissed Large tax Payer order
Supreme court of Nepal on Monday 26 August 2019 have made decision in favor with Ncell by refuting the previous order made by the Large tax Payer Office.
The large tax payer office at Lalitpur have given a notice to Ncell to pay Rs 39 Arab as the tax during the company acquisition by Axiata group. Previous Ncell have been under the European company Telesonoria.
The judge panel of supreme Court have stated that the large tax payer office haven’t given sufficient time to Ncell to show the transaction and shares beneficiary. This decision was made by judges Tej bahadhur KC, Purshottam Bhandari, Dambahadhur Shahi, Sushma latha Mathema and Manoj Kumar Sharma.
In baisakh 3 of 2076 BS, large tax payer have instructed Ncell to pay the Capital Gain Tax and Sales tax incurred during acquisition of Ncell by Axiata Telecom. The total amount was 39 Arab 6 crore 6 lakh and 85 thousand.
In refutation to the large tax payer decision, Ncell went to supreme Court against it.
Now, large tax payer off office will again recalculate the taxable amount that the Ncell need to pay to the government. After the supreme Court decision, almost Rs 18 Arab seems to be deduct than the previous amounted tax.
The Ncell tax issues have been quite long . Before, supreme Court have rescheduled the settlement date for two times.