Brokers to halt trading today as IRD instructs to pay VAT since 2069

Inland Revenue Department (IRD) has sent instruction to brokerage companies to pay Value Added Tax (VAT) on commission since 2069 B.S. In protest of this, the brokers are halting trading at NEPSE today. Yesterday, IRD had asked two brokerage companies to pay VAT, fine and interest on the amount since 2069. Brokerage companies have argued that since they are not registered under VAT, there is no requirement for them to pay VAT on the commission. Brokers have also set forth the point that NEPSE and SEBON both take a cut from the broker commission, which is why they should not pay VAT on the commission levied from the clients. Shareholders having shares till yesterday eligible for right share of Himalayan General Insurance and Reliable Microfinance Himalayan General Insurance Company Limited (HGI) and Reliable Microfinance Bittiya Sanstha Limited (RMFL) had declared tomorrow (June 30, 2017) as the book closure date for their upcoming 166.67% and 50% right shares. Since the trading in NEPSE is halted today, only those shares traded till yesterday are eligible to apply for the right shares.