Health Service Tax in Nepal. Health Tax in Nepal.

Health Service Tax in Nepal. Health Tax in Nepal.

Health Service Tax in Nepal. Health Tax in Nepal.
Update: Health Tax has been waived off on health services as per BUDGET OF NEPAL 2075/2076 (2018-2019).No tax on education service and health services.

Health Service Tax is the tax charged on the health services provided by the individual, institution or body which falls within the tax chargeable Health Services. We have explained Health Service Tax in Nepal below in the question and answer form for easy understanding.

1. Who should collect/charge Health Service Tax?

Health services provided by the individual, institution or body other than the health services provided by the Nepal Government and Community Hospitals.

2. What is the rate of health service tax? On which amount health service tax should be charged?

health service tax should be charged at the rate of 5% on the invoiced price/amount.

3. On which fees health service tax should be charged/imposed?

On each and every fee charged by individual, institution or body for providing health services to its patients.

4. When should collected health service tax amount and its accounts/details be submitted to the concerned authority?

For the period of Shrawan to Kartik, within 25th of Mangsir

For the period of Mangsir to Falgun, within 25th of Chaitra

For the period of Chaitra to Asadh, within 25th of Shrawan

5. Are the fees charged for services like X-Ray, Laboratory tests from the patient liable to health service tax?

Yes

6. What are the penalties and fines if health service tax is not deposited/paid within the allowed time?

Interest at the rate of 15% per annum of health service tax should be paid.

7. What are the penalties and fines if health service tax account/details are not submitted within the allowed time?

Rs. 1000 per detail/description should be paid as a fine.

8. What if health service fees are fraud/scam/hidden?

Tax officer can decide the amount of health service tax and can impose fine/penalty up to 25% on the decided/calculated health service tax.

9. What are the accounts to be maintained/kept? Maintained accounts should be certified or not?

Sales account as per health service tax directory schedule 2 to be maintained and used after certifying it from tax officer.

10. Can I use any format of the invoice as per my wish or should I use any specific format of invoice?

No, you should use the invoice format as prescribed in health service tax directory schedule 2.

11. Can I issue the computerized invoice? What should I do?

Yes, you can issue the computerized invoice after getting approval from Inland Revenue Office. You should make application to Inland Revenue office attaching following documents.

1. Copy of software purchase/sale agreement invoice.
2. Copy of software purchased invoice.
3. Details of software.

12. I do have the approval to issue the computerized invoice, what are the terms and conditions to be followed by me?

1. keep a copy of each invoice issued by the computer

2. should use the invoice format as prescribed in health service tax directory schedule 2.

3. software should be programmed in such a way that invoice number cannot be changed/altered.

4. there should not be a function to change/amend/alter invoice once issued. If there is the need to change/amend/alter invoice then it should be done by the debit note or credit note.

13. Can we appeal against the amount of health service tax calculated by the Tax Officer or order of the Tax Officer to shut down/close the business? If Yes, where and when should an application be made?

Yes, you can make application within 30 days after the order or notice from the Tax Officer. You should write an application to the Director General of Inland Revenue Department.

14. Should I deposit pledge/guarantee amount while filing an appeal?

Yes, You should deposit undisputed amount of calculated health service tax and fine imposed thereon by the Tax Officer. In addition to this, you should also deposit one-third of the disputed health service tax and fine thereon in cash.