Tax audit is often taken as a difficult and complicated task, the word itself can make many business owners feel uneasy considering the complexities. But don’t worry as with a bit of guidance and preparation it can be completed hassle free. In fact it is a great opportunity to maintain accountability and improve your financial condition.
At GFCS Nepal we specialize on taxation and the processes involving tax, with our team of experienced individuals we can play a major role eto make your task easy and give you relief of any unnecessary stress that you may face due to the taxation process.
What is a Tax audit?
Tax audit is the official review of your financial documents that is conducted by the Inland Revenue department (IRD) OF Nepal. The main purpose of this is to maintain accountability and keep track of your income, expenses and taxes.
It is the process in which the government is checking whether you’ve paid your taxes or not.
The audit mainly involves:
- Income tax
- VAT(Value Added Tax)
- TDS(Tax Deducted at Source)
How to prepare for Tax Audit in Nepal
1.Organize your financial records
The first step is making sure that you have all your financial documents checked and prepared properly. It should be well organized. You’ll need:
- Invoices including sales and purchase
- VAT records
- Bank Statements
- Salary sheets and Tax deducted at source(TDS) records
- Audit reports
Keep both online and physical copy of the documents as proper documentation makes the preparation process of tax audit easy.
2. Reviewing past TAX records
Before the tax audit go through all the past records of audits and also re check all the financial documents
3. Confirm all the records of TDS and payments
TDS and salaries that are paid are categorized as deductible income so make sure to deduct those amounts and submit that report to the Inland Revenue Department (IRD).
4. Prepare your team
Your financial team must be ready with all the records and proofs and they must be constantly verifying the documents and invoices and they must be ready with the answers to respond to the auditor.
GFCS in this case will handle the entire process for you and aid you while communicating with the tax office.
5.Understanding the tax notice
After the IRD provides you with the notice regarding tax audit you must follow these instructions carefully:
- The tax period that is going to be audited
- The documents that are to be presented
- The end date until when all the documents are to be submitted
What Happens during the Tax Audit ?
During the tax audit the respected officials will go through all the documents including the TDS, deductions, bank statements, invoices and verify whether the tax paid was appropriate or not and if they find any issues you might be asked to pay additional tax, interest or penalties.
The list of documents the official may review are as :
- Your reported income and expenses.
- The amount of tax paid.
- Supporting documents.
How GFCS can help:
If this process of tax audit seems a bit complicated at times this is where we come in.
At GFCS Nepal we provide assistance for the process of Tax audit with the help of experienced individuals. We aim to make the process of tax audit smooth, easy, hassle free and simple, so that you can be relaxed and free from the burden that this process can introduce and focus on growing your business.
Here’s how we assist:
- Review your expenses and income.
- Prepare the file for the tax return.
- Enduring all the deductions and expenses are correctly filed.
- Submitting on time to avoid penalties and regular follow up.
- Communicated with IRD.
- Represent your business during the tax audit process.
- Guide you as to what must be done after the audit.
Conclusion
The process of tax audit is a very important process if you’re associated with earning an income in any way . You can take the service of GFCS Nepal for preparing for a tax audit. We provide easy and professional services .
At GFCS Nepal we specialize in any tax related activities and can aid in any process of tax audit. If you need any kind of help regarding taxation or any other financial assistance and services , feel free to reach out to us and we will be glad to help you.
Contact Us:
We are here to make your time very efficient. We will provide suggestions and offer experienced professionals that will help you understand finances and make your process tax audit as simple and easy as possible. If you have queries or need any kind of help or consultation we are always at your service and our team is always eager to work and coordinate with you to make your work easier. For someone who needs our assistance you can contact us through
Phone: 9802360825
Email: [email protected]
Website:https://gfcsnepal.com/
Location: https://g.co/kgs/J6pufPG
You can also reach us through social media, we have our services available on facebook, Instagram and twitter. You can leave in a msg or a call and our team of experts will reach you as soon as possible. We look forward to working with you and helping you with the process of tax audit.