Claims that commission has been started from riders as the tax related process including registration in PAN has been completed
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Ride hailing platform InDrive, which has been operating unregistered and unofficially for a long time, is now registered as an industry. After the government amended the Industrial Business Act, 076 and recognized ride-sharing as a service industry, Indrive started itself as a formal business according to the law.
InDrive has entered the competitive ride-sharing business with a total investment of Rs 5 crore as foreign direct investment. A representative of InDrive said that since the tax related process including registration in PAN has also been completed, now they have started collecting commission from the riders. The official information about how much commission will be taken has not yet come.
Noting that some ride-sharing platforms currently in operation charge up to 20 percent commission without clear legal provisions, the officials of the industry department opined that there should be procedural and legal clarity in these matters as well. "Due to the lack of legal clarity in ride sharing, companies like Pathao have been registered as doing computer-related work," he said.
In the 'Ordinance to Amend Certain Nepal Acts on Investment Facilitation, 2081' released at the Serofero of the Investment Conference, the government amended the Foreign Investment and Technology Transfer Act 2075 and opened up to 70 percent foreign investment in ride sharing. The official of the Industry Department said that since transport is an essential and sensitive service and is included in the classification of providing services using electronic platforms, it is appropriate for Nepalese to invest in this type of service.
'There is a provision that 20 percent of shares must be owned by Nepalese in telecommunications service providers, 10 percent of shares in casinos should be owned by Nepalis, similarly, if 30 percent of Nepalese partners are kept in ride-sharing, such arrangements have been made so that domestic businessmen can also flourish,' said the official of the department. Ride sharing platforms operating with 100 percent foreign investment must also think about this in the coming days.'
Indrive, which claims to have served nearly one billion people through 200 million app downloads in 749 cities in 46 countries, has been providing courier, cargo and long-distance transportation services in some countries along with ride sharing. After nearly a year of trying to register as a ride-sharing industry in Nepal, InDrive has finally legalized its informal service.
