📞 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 Rate of GSM Prepaid of Nepal Telecom
| S.N. | Types of Service | Charge |
|---|---|---|
| 1. | On-Net call | Rs.1.50 per minute |
| Off-Net call | Rs.2 per minute | |
| 2. | SMS service | Rs.1 per SMS (in network of telecom) |
| Rs.1.25 per SMS (in other networks) | ||
| Rs.5 per SMS (for international SMS) | ||
| 3. | Friends and family service (FNF service) | Rs.0.70 per minute for maximum 5 persons |
| 4. | Video call charge | Rs.2 per minute |
S.N.
1.
Types of Service
On-Net call / Off-Net call
Charge
- On-Net call: Rs.1.50 per minute
- Off-Net call: Rs.2 per minute
S.N.
2.
Types of Service
SMS service
Charge
- Rs.1 per SMS (in network of telecom)
- Rs.1.25 per SMS (in other networks)
- Rs.5 per SMS (for international SMS)
S.N.
3.
Types of Service
Friends and family service (FNF service)
Charge
Rs.0.70 per minute for maximum 5 persons
S.N.
4.
Types of Service
Video call charge
Charge
Rs.2 per minute
📋 Tariff Rate of GSM Postpaid of Nepal Telecom
| S.N. | S.N. | Peak hour 6:00 AM - 18:00 PM | Off peak hour 10:00 PM - 6:00 AM | Monthly rental charge |
|---|---|---|---|---|
| 1. | On-net call | Re. 1 per minute | Re. 0.55 per minute | Rs. 300 |
| Off-net call | Re. 1.5 per minute | Re. 1.5 per minute | ||
| 2. | Short message service (SMS) | Re.1 per SMS (on-net sms) | ||
| Rs. 5 per international SMS | ||||
| 3. | FNF Service | Rs.0.55 per minute for maximum 6 person | ||
| 4. | Video call charge | Rs. 2 per minute | ||
S.N.
1.
Service
On-net call / Off-net call
Peak hour (6:00 AM - 18:00 PM) / Off peak hour (10:00 PM - 6:00 AM)
- On-net call — Peak: Re. 1 per minute, Off peak: Re. 0.55 per minute
- Off-net call — Peak: Re. 1.5 per minute, Off peak: Re. 1.5 per minute
Monthly rental charge
Rs. 300
S.N.
2.
Service
Short message service (SMS)
Charge
- Re.1 per SMS (on-net sms)
- Rs. 5 per international SMS
S.N.
3.
Service
FNF Service
Charge
Rs.0.55 per minute for maximum 6 person
S.N.
4.
Service
Video call charge
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
📐 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 |
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