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Instructions to bring the advertisement on social media under the ambit of taxation

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The development of information technology has reduced the world to a small village. Although the development and expansion of Internet services has made people’s daily lives easier, it has been found that the government revenue received from it is losing.

The Office of the Auditor General has clarified that the government agencies do not have information about advertisements and other commercial activities through social media and apps.

The use of Viber, Messenger, Skype, What’s App, WeChat and IMO, which provide telephone services through Internet services, has also increased. The users of such networks are also increasing day by day.

Similarly, applications such as Zoom, Wavex, and Cisco for conducting meetings, conferences, and seminars are operating freely in Nepal. For some services, payment is being made from the US dollar account. When such payment is made, it is not registered in any system of Nepal and has not come under the scope of tax.

According to Section 67 of the Income Tax Act, the government has not taken any initiative to bring it within the tax base of Nepal. The 58th report of the Auditor General has expressed objection that the government does not know the details of the payment of US dollars through social media and that it does not come under the scope of revenue.

The General Account has decided that the service providers providing such services should be registered in Nepal and arrange for revenue collection. Emphasizing to widen the revenue base by bringing all kinds of economic activities under the scope of tax, the General Accountant has asked to manage e-commerce and online advertising on social networks such as Viber, Messenger, Skype, WeChat, Facebook.

The Accountant General has instructed the government to bring those areas under the tax regime. A large amount of payment is made daily for publishing and broadcasting any advertisement and information.

Although advertisements and notices are clearly seen on social media, the payments are made through cards, but because the revenue administration of the country is not aware of it, the revenue of the government is being lost. Rasas

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