PAN (Permanent Account Number)

Do you want to know more about pan bill and vat bill in Nepal? Are you searching Pan bill & Vat Bill format in Nepali & English ? Do you want to know about the limitation of Pan bill and VAT Bill ? What is difference between pan bill & Vat ? If yes, then read this small article of ours. We have tried to answer all these questions.

Types of PAN

1. Personal Pan and

If you work for any organization or company, you need to get a personal number. This way you don’t have to pay any income tax to the government when you get a personal number. The company deducts a few percent from your salary and pays taxes to the government.

2. Business Pan

If your business holder, you should take a Business PAN and you need to keep a record of each of your transactions.

Different between PAN & VAT

If your business is related to sales and production of goods and you sell up to 5 million items in a year, you can register your business in PAN.
If your business is not related to sales and production of goods but related to services and your turnover does not exceed 2 million throughout the year, you can still run your business by registering in PAN.
If your business is related to sales and production of goods and you sell or trade more than 5 million items in a year, you need to register your business for VAT.

If your business is not related to the sale and production of goods but to the service and your turnover is more than 2 million throughout the year, you still need to register your business for VAT.
You will not be allowed to pay more than Rs. 10,000/- That is, the limit of one pan will is Nrs. 10,000/-. If you pay more than Nrs. 10,000/- bills, you may need to register for VAT.

You can pay VAT as much as you want. That is, it has no boundaries. This is because there is no limit to the 13 percent tax benefit to the government when paying the VAT bill.
Normally the size of the pan will be as small as possible which can be printed in any size but you will not be able to change the size of the vat will as per the requirement. You can make it as big as you need but you can’t make it small.

Limitation of pan Bill & Vat bill in Nepal

There are several limitations to the use of PAN (Permanent Account Number) bills and VAT (Value Added Tax) bills in Nepal. These limitations include:

PAN bills are only valid for a certain period of time. After the expiration date, the PAN bill must be renewed or replaced. This can be inconvenient for businesses that need to use the PAN bill for an extended period of time.
VAT bills are only valid for a certain period of time. After the expiration date, the VAT bill must be renewed or replaced. This can be inconvenient for businesses that need to use the VAT bill for an extended period of time.
Both PAN and VAT bills are only valid in Nepal. They cannot be used in other countries, which can be inconvenient for businesses that operate internationally.
There is a limit on the amount of money that can be recorded on a PAN or VAT bill. For PAN bills, the maximum amount is NPR 500,000 (approximately USD 4,400). For VAT bills, the maximum amount is NPR 1,000,000 (approximately USD 8,800).
There are certain restrictions on the types of transactions that can be recorded on a PAN or VAT bill. For example, PAN bills cannot be used for transactions involving tobacco or alcoholic beverages. VAT bills can only be used for transactions involving the sale of goods or services.
The process of obtaining and using PAN and VAT bills can be complex and time-consuming. Businesses must follow a specific set of rules and procedures to obtain and use these bills, which can be a burden on their time and resources.

Overall, these limitations can make it difficult for businesses to fully utilize PAN and VAT bills in Nepal. However, these bills can still be a useful tool for businesses that need to record and track their financial transactions in a formal and organized manner.