Excise Records, Stamps, Returns and Assessments — Nepal Control Guide

Controlled excise activity needs records appropriate to its licence and product. Manufacturing, import, distribution and retail have different movement and reporting requirements. Identify current Rules, licence conditions and IRD instructions before selecting a stock or stamp register.

For alcohol, tobacco and other controlled products, lawful sourcing and prescribed markings are part of the compliance file. A stamp's appearance alone does not prove lawful goods; use the official verification process and preserve purchase evidence.

Do not erase unused, damaged or cancelled stamp history. Product units and conversion factors must be consistent; a litre, case and bottle cannot be added without a controlled conversion.

Use the current prescribed return, period and due date for the activity. Reconcile taxable quantities/values, excise calculated, adjustments, deposits and closing liability. Electronic submission and payment are separate evidence events. Preserve acknowledgement and voucher; a saved local form is not a filed return.

A distributor starts with 500 units, purchases 1,000, sells 1,200 and records 20 damaged units under a reviewed authorised treatment. Expected closing stock is 280 units. If the count is 250, investigate the 30-unit difference rather than alter sales figures to force agreement. Tax consequences of damage and shortages depend on the applicable rules and evidence.

Distinguish an audit query, assessment, collection notice and licensing action. Preserve the notice, service date, computation and response. Interest, fees and penalties require their own statutory bases and periods. Do not assume payment of ordinary excise cures an unlicensed activity or false record.

Use the lawful correction and dispute route, retaining original and revised records. Confirm current stamp requirements, return instructions, deadlines and applicable charges from the official instruments.

A quantity shortage, missing stamp and unexplained cash receipt have different causes and legal implications. Investigate them separately, then connect the findings. Use consistent units when reconciling bulk production and retail packs. A transfer from a warehouse is not necessarily a sale, while a return to a supplier needs the applicable movement record rather than a negative sales entry alone. Suppose opening stock is 200 cartons, purchases 300, sales 420 and closing count 70. The unexplained difference is 10 cartons. A credit note for NPR 20,000 does not explain the quantity unless it relates to those specific goods and an authorised return or disposal. Identify the batch, movement date, supporting approval and tax consequence. Record damaged or missing goods separately from normal sales.

Prepare prescribed returns from reconciled records for the applicable activity and licence. Preserve the version filed and its acknowledgement. If an excise officer raises a difference, assemble the original licence, production or purchase records, movement documents, stamps evidence, stock count and return reconciliation. A revised spreadsheet should not replace original records or obscure the transaction history. The officer’s notice may contain a response period and specific requested information. Record the service date, responsible person and response evidence. Do not assume an income-tax review deadline automatically applies to excise proceedings. Obtain the exact statutory route before contesting an assessment or seeking a stay.

A premises handover should identify opening stock, stamps or controlled labels, outstanding returns, licences and unresolved discrepancies. Record who physically holds the goods and who maintains the government file. Management should review adjustments supported only by a verbal explanation, especially when they erase a shortage. An honest, documented difference is more useful than a forced reconciliation that cannot withstand a stock inspection.