PAN Registration Process in Nepal

We can observe from the infographic that an entrepreneur who wishes to obtain PAN registration certificate for his/her business has to go through three desks and six steps before he/she finally gets a PAN certificate. Out of the entire procedure, it seems that we can remove at least two steps without hampering effectiveness of the registration process but making it more efficient, instead. Firstly, after entering information provided by applicant into the computer system and issuance of the submission number, it seems unnecessary to take it back to the Tax Officer for corroborating information provided by the applicant with the information entered into the computer. This process could be reduced if entry is done carefully enough at PAN registration desk. If this could be achieved, PAN certificates could be printed at second step itself. Thus, the applicant would not have to go to Tax Officer (third step) and again come to PAN registration desk (Fifth step), reducing the process to four steps from six. This makes the registration process faster and more efficient.

In order to make PAN registration process easier, the number of documents that need to be submitted by the applicant could also be reduced. PAN registration is a secondary registration. A business initially has to get registered at Office of Cottage and Small Industry, Department of Industry, Office of the Company Registrar or Commerce Office before applying for PAN registration. Hence, documents such as Citizenship certificate, Estate ownership document/ rental contract and Location map of the proposed industry/trading business have to be presented during the primary registration as well. If there was a proper co-ordination between the primary registration agencies and Inland Revenue Offices, applicants would not have to go through the redundant process of submitting the same documents again.

It is really disappointing that in the world where technological advancement has reached great heights, our government agencies still does not have any mechanism by which information could be shared digitally. Now, the task of submitting same document again might not be a laborious one but it would at least liberate entrepreneurs from submitting same documents at multiple places. This could also be a small step towards digitization of all the government works which would make government’s service delivery more efficient.

Ashesh Shrestha

Ashesh Shrestha is an independent researcher. He has an Economics background and is interested in Monetary economics and Public finance.