Overview
The Inland Revenue Department has issued the Skill Promotion Fee Procedure, 2083 under Section 14(2) of the Finance Act, 2083. The Act introduced a Skill Promotion Fee on the sale of gold, silver and their ornaments to consumers. The Procedure sets out how the fee is to be collected, recorded, reported, paid, assessed and appealed.
Key Facts at a Glance
Particulars | Provision |
|---|---|
Legal basis | Section 14 of the Finance Act, 2083 |
Issuing authority | Inland Revenue Department |
Effective date | Shrawan 1, 2083 (mid-July 2026) |
Rate | 0.5% of the sales value |
Items covered | Gold, silver, and ornaments or articles made of them |
Point of charge | Sale to the final consumer |
Time of collection | At the time of sale |
Separate registration | Not required if the seller already holds a PAN |
Monthly filing and payment deadline | 25th of the following month |
Revenue head for payment | 11413 |
1. Scope and Rate
A fee of 0.5% applies to the sales value of gold, silver, and ornaments or articles made of gold or silver.
The fee applies when the sale is made to the final consumer.
The seller collects the fee from the buyer at the time of sale.
The fee is separate from VAT. The invoice format shows both the 0.5% fee and 13% VAT.
2. Administration and Registration
The fee is administered by the Inland Revenue Offices, Medium Taxpayer Offices and Large Taxpayer Offices, according to the seller's taxpayer category.
Any person holding a Permanent Account Number (PAN) who collects and deposits the fee does not need to register separately for the Skill Promotion Fee.
3. Invoicing Requirements
Sellers must issue an invoice in the format given in Schedule 1 of the Procedure.
The invoice must show the invoice number, transaction date, seller and buyer details, and the mode of payment (cash, cheque, credit or other).
Each line must show the HS code, description, weight, purity, total weight or quantity, and rate.
The invoice must separate fee-exempt value, fee-applicable value, and VAT-applicable value.
The 0.5% fee and the 13% VAT must be shown separately.
Making charges (jyala) charged by the seller must be stated in the description of goods.
4. Movement of Goods to and from Artisans
Where gold, silver or ornaments are moved between the place of business and an artisan (karigar) for making ornaments:
The goods must be accompanied by a challan in the Schedule 2 format, bearing the seal of the concerned office.
The challan must show the sender and receiver details, vehicle type and number, item description, unit, quantity, rate and value.
The artisan must hold a PAN. This is compulsory.
5. Accounting and Monthly Return
Requirement | Detail |
|---|---|
Basis of accounting | Accrual basis |
Return format | Schedule 3 (Skill Promotion Fee Return) |
Due date | 25th of the following month |
Where to file | The concerned revenue office |
Nil transactions | A return must still be filed |
Sales details | List of buyers with name, PAN (if available), address and fee-applicable value; may be uploaded as an Excel file |
The return must be certified as true, correct and complete by the authorized person.
6. Payment of the Fee
The fee collected must be deposited by the 25th of the following month.
Payment is made under the concerned office code and revenue head number 11413.
7. Treatment of Old Gold and Silver
Situation | Treatment |
|---|---|
Old ornaments taken from a customer and new ornaments of equal weight sold to the same customer | No fee is applicable |
New ornaments weigh more than the old ones | Fee applies on the value of the additional gold or silver, and on the full making charges |
Purchases from the General Public
When a trader buys gold, silver or ornaments from an individual, the trader must:
Obtain a copy of the seller's identity document, such as a citizenship certificate, national ID, driving licence, PAN certificate, or another identity card issued by the Government of Nepal.
Obtain proof that the seller had purchased the item earlier.
Obtain proof of import, where the gold or silver was brought from abroad.
Record the seller's phone number.
Every business must also display a notice board at its premises in the format given in Schedule 4.
8. Penalties and Interest
Default | Consequence |
|---|---|
Late filing of return | Additional fee of 0.05% of the fee amount per day, or NPR 1,000 per return, whichever is higher |
Late payment of fee | Interest at 15% per annum |
Fee evasion, under-declaration or splitting of sales | Additional fee of 25% of the fee, on top of the fee and interest |
9. Assessment Procedure
If an examination of a seller's transactions shows evasion, the Tax Officer may assess the fee. The steps are:
Preliminary notice: The officer issues a written notice of preliminary assessment, based on the information and evidence received.
Service of notice: A notice is treated as served if it is handed to an employee or representative, sent to the seller's address by fax, email or other electronic means, or published in a national newspaper.
Reply period: The seller is given 15 days to submit evidence in support of their position.
Final assessment: After reviewing the evidence, the officer issues the final assessment notice.
10. Appeal Rights
Stage | Time Limit | Requirement |
|---|---|---|
Administrative review before the Director General | Within 30 days of receiving the assessment order | Pay the undisputed fee and interest in full, and one quarter of the disputed fee and interest in cash |
Late application for review | Within 7 days after the deadline lapses, giving reasons | Director General may allow an additional 30 days if the reason is valid |
Decision by the Director General | Within 60 days of the application | The Director General may also order reassessment |
Appeal to the Revenue Tribunal | Within 35 days of the decision, or after the 60-day period ends without a decision | Copy to be filed with the concerned office within 15 days |
Filing a review or appeal does not suspend the implementation of the assessment decision.
11. Conflict with Other Laws
Where any provision of the Procedure conflicts with prevailing law, the Procedure is void to the extent of the conflict.
Compliance Checklist for Traders
Confirm that your PAN is active.
Add the 0.5% fee to sales invoices for final consumers.
Use the prescribed invoice format and state making charges in the description.
Obtain the Schedule 2 challan for every movement to or from an artisan.
Confirm that all artisans you deal with hold a PAN.
Maintain accounts on an accrual basis.
File the Schedule 3 return by the 25th of each month, including nil months.
Deposit the fee under revenue head 11413 by the 25th.
Keep identity and purchase proof for all old gold and silver bought from individuals.
Display the Schedule 4 notice board at your premises.
Annexures
The Procedure prescribes four formats. Traders should use them as issued by the Inland Revenue Department.
Schedule | Title | Related Section | Purpose |
|---|---|---|---|
Schedule 1 | Invoice | Section 6(a) | Issued on every sale |
Schedule 2 | Challan | Section 6(b) | Accompanies goods moved to or from an artisan |
Schedule 3 | Skill Promotion Fee Return | Section 6(d) | Filed monthly |
Schedule 4 | Notice Board and Documents for Old Gold and Silver | Section 7(e) | Displayed at the premises |
Schedule 1: Invoice Format
(Related to Section 6, Clause (a) of the Procedure)
Header details
Field | Details to be entered |
|---|---|
Invoice number | As issued |
Transaction date | Date of sale |
Seller's taxpayer registration number | PAN of the seller |
Invoice issue date | Date of issue |
Seller's name, address and phone number | Full details |
Buyer's name and address | Full details |
Buyer's taxpayer registration number | If available |
Mode of payment | Cash / Cheque / Credit / Other |
Line item details
S.N. | HS Code | Description | Weight and Purity | Total Weight / Quantity | Rate | Fee/Tax-Exempt Value (NPR) | Fee-Applicable Value (NPR) | VAT-Applicable Value (NPR) | Total Value (NPR) |
|---|---|---|---|---|---|---|---|---|---|
1 | |||||||||
2 |
Invoice summary
Particulars | Amount (NPR) |
|---|---|
Discount at ___% | |
Fee/tax-exempt value | |
Fee-applicable value | |
Skill Promotion Fee at 0.5% | |
VAT at 13% | |
Total |
Note: The making charge (jyala) charged by the seller must be stated in the description of goods.
Signature: Authorized signatory of the seller.
Schedule 2: Challan Format
(Related to Section 6, Clause (b) of the Procedure)
Used when gold, silver, or their ornaments and articles are moved to an artisan for making ornaments, and when they are returned from the artisan to the place of business. The challan must carry the seal of the concerned office.
Sender details
Field | Details to be entered |
|---|---|
Challan number | As issued |
Taxpayer's name | Full name |
Taxpayer's address | Metropolitan / Sub-metropolitan / Municipality / Rural Municipality, Block No., Ward No. |
PAN | Permanent Account Number |
Issue date | Date of issue |
Telephone number | Contact number |
Receiver details
Field | Details to be entered |
|---|---|
Receiving branch / warehouse / factory / artisan | With PAN |
Address | Metropolitan / Sub-metropolitan / Municipality / Rural Municipality, Block No., Ward No. |
Type of vehicle used | Description |
Vehicle number | Registration number |
Telephone number | Contact number |
Goods details
S.N. | Description of Goods | Unit | Quantity | Rate per Unit | Total Value |
|---|---|---|---|---|---|
1 | |||||
2 |
Signature: Authorized signatory with name.
Note: An artisan who makes ornaments must compulsorily hold a PAN.
Schedule 3: Skill Promotion Fee Return
(Related to Section 6, Clause (d) of the Procedure)
Issued in the name of the Government of Nepal, Ministry of Finance, Inland Revenue Department. It is to be filed by the 25th of the following month, even where no transaction took place. The sales details may be uploaded as an Excel file.
Taxpayer details
Field | Details to be entered |
|---|---|
PAN | Permanent Account Number |
Name | Taxpayer's name |
Address | Full address |
Income year | Relevant year |
Month | Relevant month |
Office | Concerned revenue office |
Computation of fee
Particulars | Amount (NPR) |
|---|---|
Fee-applicable value | XXX |
Rate of fee | 0.5% |
Fee | XXX |
Interest for late payment of fee | XX |
Additional fee for late filing of return | XX |
Total fee payable | XXXX |
Sales details
S.N. | Buyer's Name | PAN (if available) | Address | Fee-Applicable Value (NPR) |
|---|---|---|---|---|
1 | ||||
2 |
Declaration: I certify that the information provided above is correct, true and complete.
Authorized Person | Details |
|---|---|
Name | |
Designation | |
Address | |
Signature |
Schedule 4: Notice Board and Documents for Old Gold and Silver
(Related to Section 7, Clause (e) of the Procedure)
Every business must display this notice at its premises. It informs people who come to sell old gold, silver or their ornaments and articles of the details they must provide.
S.N. | Document or Detail Required from the Seller |
|---|---|
1 | Copy of an identity document: citizenship certificate, national ID, driving licence, PAN certificate, or any other proof issued by the Government of Nepal |
2 | Seller's phone number |
3 | Earlier proof of purchase of the gold or silver ornaments |
4 | Proof of import, where the gold or silver was brought from abroad |
Source:
Skill Promotion Procedure, 2083This article summarizes the Procedure for general information. Traders should refer to the official text issued by the Inland Revenue Department for the authoritative wording.