April 14, 2020, Kathmandu
The Ncell (Private Telecom Company) Capital Gains Tax controversy has been going on for more than a year now. But it recently settled down with the company paying their final installment on 12th March. The company has fulfilled its CGT responsibility by paying a total of Rs 22.44 billion to the government.
Ncell deposited the given amount in the revenue account of the government maintained at the Everest Bank. This was informed by Jhalak Ram Adhikari, Chief Tax Administrator at the Large Taxpayers’ Office.
Installment history of Ncell CGT clearance
It was decided that Ncell will have to pay the sum on the company’s buyout deal that took place in April 2016. The long-standing CGT controversy of Ncell was settled following a verdict of the Supreme Court.
Ncell had paid the first tranche worth Rs 4.5 billion of the outstanding tax amount on December 31. Then the second tranche worth Rs 4.6 billion was paid on March 31. Ncell was reported to have been asked to clear all CGT liabilities within mid-June. But with the final payment of worth Rs 14.33 billion on April 12, Ncell is now free from its CGT responsibility.
Why early?
As the country is dealing with the pandemic the country is in pressure to manage resources. This timely payment from Ncell is also expected to support the government to combat the spread of coronavirus. The government needs all the support from the private companies to manage resources during a pandemic. These steps will certainly help the country to some extent.
