Kaymu found evading taxes

RUDRA PANGENI 

KATHMANDU, March 12: It has been revealed that Kaymu Nepal Private Limited is evading taxes while purchasing goods from over 4,000 shops in Kathmandu Valley and supplying them to customers who place order through kaymu.com.np -- an online platform operated by Kaymu.

Republica has learnt that staff members of Kaymu Nepal Private Limited, a 100 percent foreign investment firm established for website and software development, take goods from those shops by giving them Kaymu receipt vouchers.

Receipt vouchers issued by Kaymu to shopkeepers, which have been obtained by Republica, clearly indicate 'movement of goods'. Kaymu also does not take invoice issued by the shops. This suggests that Kaymu either issues its own invoice to customers or doesn't issue any invoice at all.

A Chabahil-based shopkeeper told Republica that Kaymu staffers did not take invoice issued by his shop. "I don't know whether Kaymu issues invoice to customers or not," the shopkeeper said, seeking anonymity.

Joint secretary (Revenue) of Ministry of Finance Laxman Aryal said that any movement of goods, except transfer from a firm's godown to in its own store, is subject to Value Added Tax (VAT). "If a firm is buying goods from one store and selling to others without paying any taxes, it is a clear case of tax evasion," said Aryal.

Kaymu denies that it is involved in trading of goods. Its officials say it is only promoting products of others through its online platform.

But Kaymu's modus operandi suggests that it is involved in trading which it is not allowed to do.

Sources privy to the Kaymu's business model say Kaymu collects goods from different shops in Kathmandu Valley, stores them at its Naxal-based office for few days and deliver to consumers by using courier companies. "Courier companies collect payment from consumers, hand it over to Kaymu. Kaymu then pays back the money to the shops," they said.

Talking to Republica over telephone, Kaymu's Corporate Lawyer Anjan Neupane insisted that his client is not involved in trading of goods. "Courier companies collect goods ordered by customers via Kaymu's online portal and deliver to their doorsteps. Kaymu is not involved in trading," he added.

'KAYMU HAS ADMITTED ITS MISTAKE'
KATHMANDU (REPUBLICA): Maheshwar Neupane, director general of Department of Industry, told Republica on Tuesday said that Kaymu's officials have acknowledged that they are involved in activities which they are not permitted to do.

"They have expressed commitment to including 'advertising' in their 'objective'," said Neupane.

Earlier, Neupane had told Republica that he would take action against the firm as per the Article 25 of Industrial Enterprise Act starting from seeking clarifications.

Talking to Republica on Tuesday, Neupane said he would seek clarification from the firm and ask it to furnish details of income generation.

From Republica 

- See more at: http://new.myrepublica.com/economy/item/17020-kaymu-found-evading-taxes.html#sthash.OOArBkWm.dpuf