Implementation of Vat in Lalitpur District

Abstract

Indirect taxes have a dominant role in the whole tax structure of developing countries like Nepal. VAT has been implemented for the last eighteen years; still it is facing a number of challenges owing to poor administration, lack of good faith and honesty, rampant corruption, the problems of non-issuance of bill and narrow coverage. For the improvement in effective VAT implementation, various areas including proper billing system, efficient tax administration, intensive billing enforcement, wide coverage, computerization, etc. VAT registrants are involving in VAT fraud. In this situation IRD has the various challenges to control the VAT evasion and implement the policy in effective and efficient way. The study is focused on the effectiveness of the VAT implementation of VAT collection policy in real field. It examine out the revenue collection from VAT in different year. It explores the knowledge about VAT of business-men and consumers in Lalitpur District. It shows the problems of VAT collection and implementation system in Lalitpur District. It uses descriptive methodology .Both primary and secondary data has been used. The research shows that part of vat is greater in total revenue. The vat revenue is in increasing trend but not sufficient due to lack of proper billing, training and proper audit system.

.