Tax template: Nepal Education Equity Fee
Also called: Education service fee
Adds the 3% education equity fee levied on education related services. In the demo it posts to VAT Payable - YFF.
In detail
The Nepal Education Equity Fee template adds the 3% education equity fee (शिक्षा समता शुल्क) that Finance Act 2083 charges on education related services, notably foreign study consultancy and language test preparation. One row at 3% on the net total posts, in the demo, to 2261 - VAT Payable - YFF. Consultancies that send students abroad collect it on every invoice and remit it with the monthly return. Combine it with the 13% VAT row in one template, or use it alone where the service is VAT exempt but still fee bearing. A missing fee row is the usual reason a consultancy's return disagrees with its invoices.
Formula
Education equity fee = Net total x 3 / 100; Rs 2,00,000 x 3 / 100 = Rs 6,000
Accounting entry
| Account | Debit | Credit |
|---|---|---|
| Debtors - YFF (Student) | Rs 2,32,000 | |
| Rendering of Services - YFF | Rs 2,00,000 | |
| 2261 - VAT Payable - YFF (VAT 13%) | Rs 26,000 | |
| 2261 - VAT Payable - YFF (Education equity fee 3%) | Rs 6,000 |
How to record it in BRAccount
- 01Go to Taxes > Sales Taxes and Charges Template and open Nepal Education Equity Fee - YFF.
- 02Confirm the row: 3% On Net Total to 2261 - VAT Payable - YFF.
- 03Create a combined template with the VAT row if the service is also VAT taxable.
- 04Go to Invoicing > Sales Invoice > New, enter the consultancy service and pick the template.
- 05Submit. The fee credits the liability and is listed separately in the monthly return.
When to use it
Pick it on invoices for services the Finance Act subjects to the education fee.
Example from the demo books
A Rs 2,00,000 foreign study consultancy invoice adds a 3% fee of Rs 6,000.