Kathmandu. Now, it has been made mandatory for the ride-sharing service provider to have a permanent account number (PAN) for carrying out transactions.
Issuing a notice today, the Inland Revenue Department (IRD) has made PAN mandatory for ride-sharing customers from the new fiscal year starting from Friday. According to the department, 5 percent VAT will be added to ride-sharing.
Clause 78 of the Income Tax Act, 2058 and Rule 23 of the Income Tax Rules, 2059 states that any person who wants to earn assessable income and any person who wants to obtain a permanent account number or pays tax should obtain PAN before earning such income or deducting tax.
In this connection, the Department has notified the residents to compulsorily obtain a PAN for any person providing the service by joining the Ride Sharing Operator’s platform.
