Kodavatar Tech Pvt Ltd received an award for filing the highest amount of income tax among the information technology services exporters in a program organized by the Internal Revenue Department.
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Another example has been added in the context of the information technology sector's contribution to Nepal's economy becoming stronger. On the occasion of National Tax Day on Saturday, a company from the information technology sector was also honored while the government was honoring the company that paid the highest tax.
Kodavatar Tech Pvt Ltd received a certificate of appreciation for filing the highest income tax among those involved in the export of information technology related services in a program organized by the Internal Revenue Department. According to the department, the
company filed the highest income tax according to the income statement of the financial year 2079/80. It is seen not only as an important role as a taxpayer but also as a reflection of Nepal's growing information technology sector. "We took paying regular taxes as our responsibility, we didn't think we would get respect like this," said co-founder Prashant Raut, who is also the Chief Operating Officer of Kodavatar.
Founded in 2021, Kodavatar has been providing its various software-based information technology services in the US and Canada. Co-founder Raut informed that the company, which has its head office in Kalopul, Kathmandu, also operates a contact office in Bainalguru, India, and the Philippines. The company has developed two major products namely 'Crispcall' a virtual cloud phone system with AI and 'Dilexy' as a contact center Solsun. Different from physical telephones like landline, mobile phone and OTT like WhatsApp, Viber, Messenger, virtual cloud phone is used especially by big business companies in developed countries.
'We provide our clients with virtual numbers of more than 100 countries, these numbers we provide do not need base station towers like physical telephones,' Kodavatar co-founder Raut said, 'No matter where you are in India, Nepal, America, you can call from these numbers, pick up the phone, SMS and MMS can be sent/received.'' "We read the news that BPO companies from Bangalore are sitting there picking up the phone and providing customer service as representatives of the Texas company, but we made the platform for those BPO companies to pick up the phone," he said, "We are also certified by the International Standardization Organization ISO."
The company founded by Dinesh Silwal, Rajendra Dangol and Divakar Ghimire along with Prashant currently has about 300 IT personnel. Raut's experience is that business is getting easier as the government has encouraged this sector in recent times. As the information technology sector of Nepal has been making significant progress in the past few years, companies like Kodavatar are giving priority to the export of information technology services by introducing new business solutions. Recently, the study has confirmed that information technology services are the biggest export of Nepal.
According to a study conducted by the Center for Comprehensive Development Studies (IIDS), Nepal exported services worth about 67.62 billion rupees in 2022. Based on the study, information technology service exports contributed 1.4 percent to the country's gross domestic product and 5.5 percent to foreign exchange reserves in 2022. The latest report of Nepal Rastra Bank has also shown that Nepal has received 3 billion rupees in two months by exporting information technology services.
IT services exported from Nepal include programming, coding, designing, software development and testing. 78 percent of the Nepalese companies have got project-based work. In the report of IIDS, it was mentioned that by 2022, out of 7,637 IT companies in Nepal, 166 will export services and it has 66,509 people working on information technology, including 14,728 freelancers.
In order to further expand the information technology sector, which is becoming an important part of the country's economy, experts in this field have been pointing out that the scope of information technology services should be increased by creating a taxpayer-friendly environment. The activism of companies like Kodavatar is expected to further strengthen the sector and contribute significantly to economic and social development. If this progress of Nepal's IT sector is strengthened by national policy and cooperation, it is said that this sector has the potential to become the backbone of Nepal's economy in the future.
This year, for the first time, the government has also included the information technology service export category in the list of highest tax payers. Abhay Paudel, treasurer of Association for Software and IT Services Companies (NAS IT), an umbrella organization of companies involved in exporting information technology services, says that identifying this category as an industry is positive.
'This year, the government has identified IT export as a separate industry for the first time by placing it in the list of the highest tax payers,' he said, 'now it can be expected that the IT service export sector will also gain importance during every policy making, this is a very positive thing.'
