Amendment to Value Added Tax Fiscal Year 2077/78 (2020-21) in English

Section Existing Provision (FY 2076/77) New Provision (2077/2078) Comments
10(2)(a) Scraps and Patru Scraps and Patru - Deleted

Scraps and Patru are to be registered on the basis of turnover limit


Existing Words:

Municipality, Motor Parts, and Legal, Tailor with Shirting and Suitings

Following words are deleted:

Municipality, Motor Parts, and Legal, Tailor with Shirting and Suitings

25(1)(b2) No Provision Tax paid by United Nations, its member institution, and specialisted agency inside Nepal on purchasing goods and service during operation under its objectives.  
25C1 No Provision

Refund of Tax Paid under Contract

1) Any amount deposited by public enterprise or Nepal Government or Fully or Partly owned enterprise by GON under contract of goods or service or goods and service under prevailing law of public procurement, under the name of entity can be credited with teh tax amount payable by the related contractor or supplier

2) Any amount under sub-section (1) carried for continuous 4 months which cannot be credited with the payable tax can be applied for the refund by contractor or supplier.

3) If application is received pursuant to Sub-Section(2) such tax shall be refunded within 60 days if found reasonable.

4) If application for the refund is made pursuant to Sub-Section(2) such amount cannot be credited with the payable amount of tax on next month.

25C2 No Provision

Refund of Tax paid my medicine industry

1)Application can be made by the medicine industry for refund on quarterly basis for any VAT paid on purchase of Raw material, Auxiliary Material and Packing material from local supplier by medicine industry for the production of medicine.

2) Tax officer shall refund amount if appication is received pursuant to sub-section (1) and found reasonable with in 60 days.

29(1)(a) 10,000 per tax period Replaced with: 20,000 per tax period 20,000 fine is applicable for every tax period if not registered under the order of tax officer.
29(1d) No Provision If any person who is required to registered carries transaction without being registered, Tax officer can fine upto 50% of controversy amount  
31A As per sub-section(1) Replaced with: As per sub-section (6)  


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