What is IRD (Inland Revenue Department)?

What a business deals with the IRD for

• Registration. A PAN under the Income Tax Act 2058, and VAT registration under the VAT Act 2052 once turnover or trade requires it. The guide to PAN versus VAT registration explains which applies to you.
• Returns. The monthly VAT return with its Annex 13 counterparty schedule, and the annual income tax return.
• Payments. Tax due is paid through the voucher or bank channel your office accepts.
• Withholding. TDS deducted from payments such as rent and service fees is deposited in the name of the person paid.
• Electronic billing. The IRD sets the Electronic Billing Procedure 2074, publishes the list of enlisted billing software, grants permission letters to bill electronically and runs CBMS, its system for monitoring invoicing.

Your own tax office

Most day-to-day dealings happen with the Inland Revenue Office or taxpayer service office your business is registered under, not with the Department’s head office. That office handles your registrations and permission letters, and it is usually where a query or inspection comes from. Online filing and payment happen through the taxpayer portal on ird.gov.np, using your own credentials.

Common mistakes

Kuver Books is designed to meet the IRD Electronic Billing Procedure 2074, and its VAT reports cover the registers and the Annex 13 schedule the Department asks for, as the reports page shows.