TABLE OF CONTENTS

Recommendation
Viva-Voce Sheet
Declaration
Acknowledgement
Table of Contents
List of Tables
List of Figures
Abbreviations
Page No.
CHAPTER I: INTRODUCTION
1.1 Background of the Study

1.2 Statement of the Problem

1.3 Objectives of the Study

1.4 Significance of the Study

1.5 Limitations of the Study

1.6 Organization of the Study

CHAPTER II: CONCEPTUAL FRAMEWORK AND REVIEW OF LITERATURE

2.1 Conceptual Framework

2.1.1 Value Added Tax

2.1.2 The Rationales for VAT

2.1.3 The VAT Mechanism

12

2.1.3.1 The Value Added: How to Measure It

12

2.1.3.2 Three Alternatives in VAT Computation

12

2.1.3.3 Three Types of VAT Base

14

2.1.4 VAT Design Issues and Policy Implications

15

2.1.4.1 Origin versus Destination Principle

15

2.1.4.2 VAT Exemption

16

2.1.4.3 VAT Refunds

17

2.1.5 VAT in Small Countries

2.1.6 VAT Administration in Nepal

19
20

2.1.6.1 Registration

21

2.1.6.2 Deregistration

22

2.1.6.3 Accounting

22

2.1.6.4 VAT Invoices

23

2.1.6.5 Return Filing

23

2.1.6.6 VAT Collection

23

2.1.6.7 Tax Credit

24

2.1.6.8 Assessment

24

2.1.6.9 Refund

24

2.1.6.10 Management Information System

25

2.1.6.11 Appeal

25

2.1.6.12 Offences and Penalties

25

2.1.6.13 Rewards

26

2.2 Review of Previous Studies

26

2.2.1 Review of Journals and Articles

26

2.2.2 Review of Books

28

2.2.3 Review of Thesis

30

2.3 Research Gap

34

CHAPTER- III: RESEARCH METHODOLOGY

3.1 Research Design

35

3.2 Sources of Data

35

3.3 Sample Size

35

3.4 Data Collection Procedure

36

3.5 Data Presentation and Analysis Procedure

36

3.6 Tools Used

36

CHAPTER IV: DATA PRESENTATION AND ANALYSIS

4.1 Secondary Data Analysis

37

4.1.1 Structure of Government Revenue

37

4.1.2 Composition of VAT

39

4.1.3 Administration of VAT

41

4.1.3.1 Registration in VAT

41

4.1.3.2 Registration in VAT till the FY 2069/70

42

4.1.3.3 Decrease in No. of VAT Defaulters

43

4.1.3.4 Refer to IRO to undertake Legal Action Against VAT Defaulters

45

4.1.3.5 Legal Action Against Income VAT Defaulters

46

4.1.3.6 VAT Due Collection from Legal Action

48

4.1.3.7 Registration on PAN through Market Survey

49

4.1.3.8 Upgrading of PAN to VAT through Market Survey

51

4.1.3.9 Forced Registration in VAT through Market Survey

53

4.1.3.10 Deregistration or Suspension of VAT/PAN

54

4.2 Primary Data Analysis

56

4.2.1 Efficiency of VAT Administration

56

4.2.2 Best Way to Increase Public Revenue through VAT

58

4.2.3 Habit of Taking VAT Bills on Purchases

60

4.2.4 Percentage of Customers Demanding Bill

62

4.2.5 Effective Media for VAT Education

63

4.2.6 Weakness in VAT Administration

65

4.2.7 Behavior of VAT Personnel to Taxpayers

67

4.2.8 Problems in VAT Collection

68

4.3 Major Findings of the Study

69

CHAPTER V: SUMMARY, CONCLUSION AND RECOMMENDATIONS

5.1 Summary

72

5.2 Conclusion

73

5.3 Recommendations

74

Bibliography
Appendices

LIST OF TABLES
No.

Details

Page No.

4.1

Structure of Government Revenue

37

4.2

Composition of VAT

39

4.3

Registration in VAT

41

4.4

Registration in VAT till the FY 2069/70

42

4.5

Decrease in No. of VAT Defaulters

44

4.6

Refer to IRO to undertake Legal Action Against VAT Defaulters

45

4.7

Legal Action Against VAT Defaulters

4.8

VAT Due Collection from Legal Action

48

4.9

Registration on PAN through Market Survey

50

4.10

Upgrading of PAN to VAT through Market Survey

52

4.11

Forced Registration in VAT through Market Survey

53

4.12

Deregistration or Suspension of VAT/PAN

55

4.13

Efficiency of VAT Administration

56

4.14

Best Way to Increase Public Revenue through VAT

58

4.15

Habit of Taking VAT Bills on Purchases

60

4.16

Percentage of Customers Demanding Bill

62

4.17

Effective Media for VAT Education

64

4.18

Weakness in VAT Administration

65

4.19

Behavior of VAT Personnel to Taxpayers

67

4.20

Problems in VAT Collection

68

47

LIST OF FIGURES
No.

Details

Page No.

4.1

Structure of Government Revenue

39

4.2

Composition of VAT

40

4.3

Registration in VAT

42

4.4

Registration in VAT till the FY 2069/70

43

4.5

Decrease in No. of VAT Defaulters

45

4.6

Refer to IRO to undertake Legal Action Against VAT Defaulters

46

4.7

Legal Action Against VAT Defaulters

4.8

VAT Due Collection from Legal Action

49

4.9

Registration on PAN through Market Survey

51

4.10

Upgrading of PAN to VAT through Market Survey

53

4.11

Forced Registration in VAT through Market Survey

54

4.12

Deregistration or Suspension of VAT/PAN

56

4.13

Efficiency of VAT Administration

58

4.14

Best Way to Increase Public Revenue through VAT

60

4.15

Habit of Taking VAT Bills on Purchases

62

4.16

Percentage of Customers Demanding Bill

63

4.17

Effective Media for VAT Education

65

4.18

Weakness in VAT Administration

66

4.19

Behavior of VAT Personnel to Taxpayers

68

4.20

Problems in VAT Collection

69

48