✦ Household Expenses
Telephone
Telephone
Billing
Learn how Nepal Telecom calculates your telephone bill using minimum call charges, extra call rates, Telecom Service Charge (TSC), and Value Added Tax (VAT).
📞 4 Modules
📝 3 Examples
✏️ 30+ Questions
🇳🇵 Nepal Telecom
📘 Module 01
Household Telephone Expenses
📞 Real Life Math
How does your
telephone bill get calculated?
Nepal Telecom charges a minimum tariff of Rs. 200 for the first 175 calls (1 call = 3 minutes). Each extra call beyond 175 costs Rs. 1. Then 13% Telecom Service Charge (TSC) and 13% VAT are added.
175 calls
Minimum (Rs. 200)
Rs. 1
Extra per call
13%
TSC on TC
13%
VAT on TC+TSC
Your Home
267
Total Calls
Call Charge (TC)Rs. 292
TSC (13%)Rs. 37.96
VAT (13%)Rs. 42.89
Total BillRs. 372.85
Minimum Charge
For the first 175 calls per month, the charge is a flat Rs. 200. If you make 100 calls or even 1 call, you still pay Rs. 200 minimum. 1 call = up to 3 minutes.
Extra Calls
Each call beyond 175 is charged at Rs. 1 per call. So if you make 267 calls, the extra is 267 − 175 = 92 calls, costing Rs. 92 extra.
TSC & VAT
13% Telecom Service Charge (TSC) is added on TC. Then 13% VAT is added on (TC + TSC). These are government taxes on telephone services.
🇳🇵 Nepal Telecom — PSTN / GSM Prepaid Tariff
The above bill is related to local call tariff. On the basis of rule of local call, tariff of minimum 175 calls is Rs. 200. After that, tariff is calculated by adding Re. 1 per extra call amount. 13% service charge and 13% value added tax of total tariff with service charge should be determined as revenue.
Total Bill = TC + TSC + VAT | TSC = 13% of TC | VAT = 13% of (TC + TSC)
📋 Tariff Table of GSM Prepaid of Nepal Telecom
| S.N. | Type of Service | Peak Time (6am–10pm) | Off Peak Time (10pm–6am) | Monthly Rental Charge |
|---|---|---|---|---|
| 1. | One/No call | Rs. 1.50 per minute | — | — |
| 2. | Off Net call | Rs. 2 per minute | — | — |
| — | SMS services | Re. 1 per SMS (on-net) | Rs. 2 per SMS (other/international) | |
| 3. | Friends and family (TNF) | Re. 0.75 per minute for max 5 numbers | — | |
| 4. | Video call charge | Rs. 2 per minute | — | — |
🔄 How Is Your Telephone Bill Calculated?
1
Count Total Calls Made
Record total calls made in the month. If ≤ 175 calls: minimum charge Rs. 200. If > 175: extra calls = Total calls − 175.
2
Calculate Total Call Tariff (TC)
TC = Rs. 200 (if calls ≤ 175) OR TC = 200 + (Total Calls − 175) × 1 (if calls > 175).
3
Add Telecom Service Charge (TSC)
TSC = 13% of TC. Amount after TSC = TC + TSC = TC × 1.13
4
Add Value Added Tax (VAT)
VAT = 13% of (TC + TSC). This tax is applied on the amount after adding TSC.
5
Total Telephone Bill
Total Bill = TC + TSC + VAT OR equivalently Total = TC × (1.13)²
🔢 Module 02
Key Formulas
📐 Formula 1 — Total Call Tariff (TC)
If calls ≤ 175: TC = Rs. 200 (minimum charge)
If calls > 175: TC = 200 + (Total Calls − 175) × 1
The first 175 calls in a month cost a flat Rs. 200. Each call beyond 175 costs Re. 1 extra.
📐 Formula 2 — Telecom Service Charge (TSC)
TSC = 13% of TC = (13 ÷ 100) × TC = 0.13 × TC
TSC is a 13% government service charge applied on the total call tariff (TC).
📐 Formula 3 — Amount after adding TSC
Amount (TC + TSC) = TC + 0.13×TC = TC × 1.13
This is the subtotal before VAT is applied.
📐 Formula 4 — Value Added Tax (VAT)
VAT = 13% of (TC + TSC) = 0.13 × (TC + TSC)
VAT at 13% is applied on the total of TC and TSC together, not just on TC.
📐 Formula 5 — Total Telephone Bill
Method 1: Total = TC + TSC + VAT
Method 2: Total = (TC + TSC) × 1.13 = TC × 1.13 × 1.13 = TC × (1.13)²
Both methods give the same result. Method 2 is a shortcut.
📊 Tariff Rate Quick Reference
| Component | Rate / Rule |
|---|---|
| Minimum calls per month | 175 calls |
| Minimum charge (for ≤ 175 calls) | Rs. 200 |
| Extra call rate (beyond 175) | Re. 1 per call |
| Telecom Service Charge (TSC) | 13% of TC |
| Value Added Tax (VAT) | 13% of (TC + TSC) |
📋 Discount / Fine Schedule (from bill date)
| Payment Period | Discount / Fine |
|---|---|
| Within 1st and 2nd month | 3% Discount |
| Within 3rd month | As per bill |
| Within 4th month | 10% Fine |
| Within 5th month | 20% Fine |
| After 5th month | 50% Fine |
📝 Module 03
Worked Examples
Example 1 of 3
If there are 267 calls in a month from PSTN telephone line, (a) Find the total charge (TC). (b) Find TSC. (c) What is the total telephone bill with VAT?
Total Calls = 267
Min 175 calls = Rs. 200
Extra = Re. 1/call
TSC = 13%
VAT = 13%
✏️ SOLUTION
1
Extra calls = 267 − 175 = 92 calls
TC = 200 + 92 × 1 = Rs. 292
TC = 200 + 92 × 1 = Rs. 292
2
TSC = 13% of 292 = 0.13 × 292 = Rs. 37.96
TC + TSC = 292 + 37.96 = Rs. 329.96
TC + TSC = 292 + 37.96 = Rs. 329.96
3
VAT = 13% of 329.96 = 0.13 × 329.96 = Rs. 42.89
4
Total Bill = 292 + 37.96 + 42.89 = Rs. 372.85
✅ (a) TC = Rs. 292 | (b) TSC = Rs. 37.96 | (c) Total Bill = Rs. 372.85
Example 2 of 3
Under GSM prepaid, recharging Rs. 100 card. VAT 13% and OT 2% included. Call rate Rs. 1.50/min within network. How many minutes of talk? How many calls (1 call = 3 min)?
Recharge = Rs. 100
VAT = 13%
OT = 2%
Call rate = Rs. 1.50/min
✏️ SOLUTION
1
x + 13%x + 2%x = 100 → x × 1.15 = 100 → x = Rs. 86.96
2
Before TSC: y × 1.13 = 86.96 → y = Rs. 76.96
3
Talk time = 76.96 ÷ 1.50 ≈ 51 minutes
4
Calls = 51 ÷ 3 = 17 calls
✅ Talk time ≈ 51 minutes | Calls ≈ 17 calls
Example 3 of 3
Ramita's house: current reading 4444, previous 4197. Min 175 calls = Rs. 200, Re. 1 extra. 13% TSC, 13% VAT. Find: (a) calls made, (b) min tariff with TSC+VAT, (c) total bill.
Present = 4444
Previous = 4197
Min 175 = Rs. 200
Extra = Re. 1/call
✏️ SOLUTION
1
(a) Calls = 4444 − 4197 = 247 calls
2
(b) Min tariff: TC=200, TSC=26, TC+TSC=226, VAT=29.38 → Total min = Rs. 255.38
3
(c) Extra=72, TC=272, TSC=35.36, TC+TSC=307.36, VAT=39.96 → Total = Rs. 347.32
✅ (a) 247 calls | (b) Rs. 255.38 | (c) Total = Rs. 347.32
✏️ Module 04
Solved Questions
📝 Written Solution
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