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Ncell Submits Rs 4.5 Billion CGT

by dbusiness
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January 1: Telecommunication giant Ncell has paid Rs 4.5 billion capital gains tax (CGT) to the government despite an interim order from the International Centre for Settlement of Investment Disputes (ICSID) to the government not to collect CGT from Ncell.

Ncell paid the amount to the Large Taxpayers Office (LTO) on Tuesday (December 31) out of Rs 22.44 billion which the office claims Ncell is liable to pay to the government.

The ICSID, to which Nepal is a signatory, had on December 18 ruled in favour of Ncell in the CGT case which has dragged on since last year.

Axiata, on behalf of Ncell, had filed a lawsuit at the international arbitration body on May 20 against the CGT determined by the Government of Nepal.

However, Ncell has pledged to pay the entire amount in six months and has asked for installment facility from the government.

The LTO said that Ncell has asked for the installment facility in accordance to Section 10 of the Income Tax Act.

Chief of the LTO Jhalak Ram Adhikari confirmed that Ncell has submitted CGT of Rs 4.5 billion.

“We have asked Ncell to give us a clear detail about the payment in installment,” he said.

Adhikari said that they cannot agree to the request of Ncell unless it becomes clear how much amount Ncell will pay every month.

Experts believe that Ncell decided to pay the tax despite the interim order in its favour to acquire the residual frequency it won in a bidding process on December 18. Nepal Telecom Authority has made it clear that it will not allow Ncell to use the 1800 MHz frequency unless it furnishes tax clearance documents, as per the requirement mentioned in the bidding process.

(Source- New Business Age)

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