Section 25C (1): Tax to be Refunded in Excess Payment Made Under Deed or Contract

1) The public body or organisation having full or partial ownership of the Government of Nepal in accordance with the prevailing laws related to public procurement, in the course of making payment to the concerned contractor or supplier for the goods or service supplied under the deed, agreement or contract, the amount deposited for tax in its name may be adjusted in the tax to be paid by the concerned contractor or supplier.

2) The amount deposited in excess is not eligible for adjustment even after making adjustment for executive four months pursuant to sub-section (1); the concerned contractor or supplier shall, if he or she wishes to have a refund of such amount, submit an application to the tax officer.

3) Upon receipt of any application pursuant to sub-section (2), the tax officer shall refund the amount determined to be refunded within sixty days of submission of such application.

4) Wherever the concerned contractor or supplier claims for the remaining amount after adjustment to be refunded under sub-section (2), such amount shall not be adjusted in the amount of tax raised in the next month.