Section 6: Place and Time of supply

1) For the purpose of assessment or realisation of tax pursuant to this Act, the matter of whether the supply of any goods or services is made at a place and time within or outside of Nepal shall be determined as prescribed.

2) For the purpose of assessing and realising the tax pursuant to this Act, the time of supply of any goods or services which occurs first out of the times mentioned hereunder shall be regarded as the time of supply of such goods or services: –

(a) At the time in which the supplier issued the invoice,

(b) In case of supply of goods, at the time in which the recipient received or took the goods from the place of transaction of the supplier,

(c) In case of supply of service, at the time in which the service is rendered,

(d) At the time in which the supplier received consideration for the goods and services.

3) Notwithstanding anything contained in Sub-section (2), the following time shall be regarded as the time of supply in the following circumstances: –

(a) In case of the telecommunication service to be supplied continuously and other similar type of public services, the time in which the invoice is issued.

(b) Where, according to the Contract, the mode of payment of the value of any good or service is made in instalments or on a partial basis in more than one day, the day on which the payment is made or the day mentioned in the Contract on which the payment has to be made, the time which occurs first.

(c) In case of goods and services where one does not get the tax deduction facility pursuant to this Act for their use, the time in which such goods and services are used.

4) If more than one circumstance may appear to apply at a time, as prescribed in Sub-section (2) regarding the time of supply in any transaction, the Director General shall determine such a time objectively.