Section 24: Treatment of Deduction exceeding Tax Liability

1) If a registered person’s deduction fixed under Section 17 for a month exceeds tax liability for such month, such excess amount may be adjusted with any outstanding amount, if any, under this Act.

2) The remainder of the excess deduction pursuant to Sub section (1) may be adjusted with the amount, if any, to be paid for the next month.

3) A registered person may submit an application to the Tax Officer for a lump sum refund, as prescribed, of the amount of the remaining excess after adjusting for a continuous period of six months under this Section.

4) Notwithstanding anything contained in Sub-section (2) and (3), any registered person, whose export sales for a month are Fifty percent or more of his/her total sales for that month and submits an application following the procedures underlined in this Section for the refund of the amount pursuant to Section 17, shall be entitled to a refund of the remaining excess after adjusting any outstanding amount.

5) On submission of an application pursuant to Sub-section (3) or (4), the amount eligible for refund shall be paid immediately and if it is not refunded within Sixty days of the submission of application, Government of Nepal shall have to provide interest on that amount, as prescribed.

6) Where a registered person has submitted an application claiming for a refund under Sub-section (3) and (4), the amount claimed shall not be available for adjustment against tax liability for the next month.