Kathmandu, April 26

The Supreme Court has observed that Large Tax Payers Office’s decision to impose Rs 39.06 billion capital gains tax on Ncell Pvt Ltd was wrong, as the LTO calculated the whole due amount without deducting the advance capital gains tax that Ncell had paid.

This was stated in the full text of the SC order that it passed yesterday in response to a writ petition filed by Ncell against the LTO. The court states that interest and fee should be imposed on the remaining CGT that Ncell had not deposited in the state coffers. This implies the LTO should add interest and fee on Rs 40 billion in the due CGT.

The SC observed that it decided to stay LTO’s decision to impose Rs 39.06 billion CGT on Ncell keeping in mind balance of convenience and the irreparable loss that the private sector telecommunication service provider could suffer due to LTO’s decision.

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