Tax template: Nepal Skill Development Fee
Adds the 0.5% skill development fee where the Finance Act requires it. In the demo it posts to VAT Payable - YFF.
In detail
The Nepal Skill Development Fee template adds the 0.5% skill development fee (सिप प्रवर्द्धन शुल्क) that Finance Act 2083 attaches to certain services, including manpower placement and training providers. Its single row at 0.5% on the net total posts in the demo to 2261 - VAT Payable - YFF. The rate is small but it is a separate levy with its own line in the IRD return, so it must be a visible row on the invoice. Pair it with the 13% VAT row in a combined template where the service is taxable. The IRD checks it against the service categories your PAN is registered for.
Formula
Skill development fee = Net total x 0.5 / 100; Rs 50,000 x 0.5 / 100 = Rs 250
Accounting entry
| Account | Debit | Credit |
|---|---|---|
| Debtors - YFF (Customer) | Rs 56,750 | |
| Rendering of Services - YFF | Rs 50,000 | |
| 2261 - VAT Payable - YFF (VAT 13%) | Rs 6,500 | |
| 2261 - VAT Payable - YFF (Skill development fee 0.5%) | Rs 250 |
How to record it in BRAccount
- 01Go to Taxes > Sales Taxes and Charges Template and open Nepal Skill Development Fee - YFF.
- 02Confirm the row: 0.5% On Net Total to 2261 - VAT Payable - YFF.
- 03Build a combined template with the 13% VAT row for taxable placement services.
- 04Go to Invoicing > Sales Invoice > New, enter the service and pick the template.
- 05Submit. The fee credits the liability account and prints as its own line.
When to use it
Pick it on invoices for services that attract the fee.
Example from the demo books
A Rs 50,000 placement service invoice adds a 0.5% fee of Rs 250.