Chapter 2 – Provisions relating to registration

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Application for registration: (1) Any person engaged in any transaction at the time of the commencement of the Act shall file an application for registration to the concerned Tax Officer, in the format as set forth in Schedule -1 within 90 days of the commencement of the Act.

(2) A person who desires to be engaged in any transaction after the commencement of the Act shall file an application for registration to the concerned Tax Officer, in the format as set forth in Schedule -1 prior to the commencement of such transaction

(3) In case a person filing application for registration pursuant to Sub-rule (1) or (2) is a partner, the application must be filed along with the complete details of the partnership in the format as set forth in Schedule -1.

Examination of application: (1) The concerned Tax Officer may ask an applicant to produce other additional details and the documents which are deemed necessary upon examination of the details and documents attached with the application filed pursuant to Rule 3. It shall be the duty of the applicant to file such additional details and documents to the concerned Tax Officer within seven days of such demand.

(2) In cases where the application for registration of transaction which is not required to be registered pursuant to Sub-section (3) of Section 10 of the Act is received, the concerned Tax Officer shall provide a notice to the applicant mentioning that the person is not required to be registered, within seven days of the receipt of the application.

To grant certificate of registration: If upon examination, as per Rule 4, of the application filed for registration pursuant to Rule 3, the concerned Tax Officer if deems it proper to register, shall register the transaction carried out or intended to be carried out by the applicant and grant the certificate of registration bearing Registration Number as well in the format as set forth in Schedule -3 to the applicant, within thirty days from the date on which the application was submitted.

6A. Provision regarding contract: (1) Any government entity, public institution or registered person shall pay tax to concerned contractor upon notification of the contract agreement concluded and the tax paid to the contractor to the Inland Revenue Department.

(2) Government entity, public institution or registered person shall award contract or receive consultancy worth more than Five Lakh Rupees annually from a registered person only.

6B. Special provision regarding construction service: Any person constructing building, apartment, shopping complex or other similar structure prescribed by the Department worth more than Fifty Lakh Rupees for commercial purpose shall cause to construct such structure from a registered person.

6C. Special provision regarding tax payment for supply of goods and services under contract: (1) Government entity or the public institution wholly or partially owned by Government of Nepal, while making the payment to the contractor or supplier for goods, services or both received as per an agreement or the contract, shall deposit fifty percent of the tax amount payable to such contractor or supplier in the concerned revenue heading on behalf of such contractor or supplier and only pay the remaining tax amount.

(2) Entity making payment as per Sub-rule (1) shall notify the concerned contractor or supplier

that the tax amount under the concerned revenue heading has been deposited.

(3) Amount as per Sub-rule (1) shall be adjusted with the tax amount contractor or supplier has to

pay.

Special conditions to register a transaction:

(1) In case any person has reason to presume that
their annual transactions shall exceed fifty lakh rupees in case of goods and twenty lakh
rupees in case of mixed transaction of goods and services, and services, they shall file an
application setting out such conditions, to the concerned Tax Officer in the format as set forth in
Schedule -1 for the registration of the transactions.

(2)If the presumption cannot be made as per Sub-rule(1), and the annual turnover of the

transactions carried out by the person exceeds Fifty Lakh Rupees in case of goods and Twenty

Lakh Rupees in case of mixed transaction of goods and services, and services, the person carrying

out such transactions shall file an application to the concerned Tax Officer in the format set

forth in Schedule -1 for registration of the transactions within thirty days from the date on which

such excess occurs.

(3) ⨻……………

(4) A person involved in transaction of goods and services required to be registered as

per Sub-section (2) of Section 10 of the Act shall register the transaction within thirty days of the

commencement of this Sub-rule.

(5) 2Removed by 22nd Amendment

⊛ (6) If a person required to be registered is found to be carrying out transaction without

registration, Tax Officer shall order concerned person to register within thirty days by stating the

basis and reason; and concerned person shall register their transaction upon receiving the order

within such time.

⨹7A. Special provision relating to temporary registration: (1) Any person not registered

(unregistered person) with Value Added Tax and engaged in taxable transactions in exhibition,

fair and similar other programs to be organized temporarily, shall apply for registration pursuant

to Section 10A of the Act with concerned Inland Revenue Office or Taxpayers’ Service Officer

along with recommendation of concerned organizer.

(2) Two percent of the estimated income from the program shall be kept as guarantee

while filing an application pursuant to Sub-rule (1).

(3) Upon receipt of application pursuant to Sub-rule (1), Tax Officer of Inland Revenue

Office or Taxpayers’ Service Office shall register the transaction and grant the certificate of

registration bearing Registration Number.

(4) Persons registering transactions as per Sub-rule(3) shall file value added tax return

and deposit the tax in the concerned Inland Revenue Office or Taxpayers’ Service Office within

seven days from date of the completion of the exhibition, fair or other programs of similar nature

and shall file an application to cancel the temporary registration along with original copy of

permanent account number certificate, tax clearance certificate for the temporary registration

period and recommendation of the organizer.

(5) Upon receiving the application to cancel the temporary registration pursuant to Subrule (4), the concerned Tax Officer shall examine the value added tax return together with other

documents and cancel the temporary registration within fifteen days and notify the applicant.

(6) Guarantee furnished by the applicant as per Sub-rule (2) may be adjusted with value

added tax to be paid under Sub-rule (4).

(7) If upon examination pursuant to Sub-rule (5) additional tax liability is assessed, the

applicant shall be issued a three days’ notice to deposit such additional tax. If the applicant does

not deposit the additional tax within such period, tax shall be recovered from the amount

furnished as guarantee by the applicant, and if the amount is inadequate, the remaining amount

shall be recovered from the organizer.

⧾7B. Period to update the record: Registered person shall update their record in the biometric

system as per Section 10C of the Act within the 3

end of Asar 2078.

Determination of amount of transaction: The amount of any transaction shall, for the
purpose of the registration of the transaction, be determined on the basis of the value of
purchase or sale of the transaction in the last twelve months, whichever is higher. Registered
person shall maintain the records proving the amount of the transaction in the place of
transaction and produce them as and when required by the Tax Officer.

To give notification of the change of place: (1) If any registered person has to change the
place of their transaction, they shall provide the information thereof to the concerned Tax
Officer prior to fifteen days of such change.
(2) Upon receipt of the information referred to in Sub-rule (1), if the concerned Tax Officer
deems that the place of transaction to be changed falls within the jurisdiction of another Tax

Office, Tax Officer shall notify the concerned tax office thereof within seven days of the

receipt of such information. To notify for the change of nature or objective of the transaction: (1) If any registered
person has to change the nature or objective of their transaction, they shall provide information
thereof to the concerned Tax Officer prior to fifteen days of such change.
(2) Upon receipt of the information referred to in Sub-rule (1), the concerned Tax
Officer shall change the nature or object of the transaction of the registered person and inform such
registered person thereof. Transfer of transaction: (1) In case any registered person transfers the transaction being
carried out by them to any other person fully or partially, they shall provide the information
thereof by setting out all the details in the format as set forth in Schedule 4 to the concerned
Tax Officer within seven days of the date on which the transaction was so transferred.
(2) In case the transaction has been transferred pursuant to Sub-rule (1), the rights,
powers and obligations of the transferor shall also be transferred subject to the terms of the
transfer.
(3) The concerned Tax Officer may, issue necessary instructions to both the parties related
to the transaction in regard to the obligations to be fulfilled by each of them under the Act and these
Rules by requiring the presence of both the parties in front of the Tax Officer. It shall be their duty
to follow the instructions so given.
♀12. Process of cancellation of registration: (1) If the registration of any person has to be
cancelled owing to the circumstances mentioned in Sub-section (1) of Section 11 of the Act, and
such registered person or the legal heir, in case of his or her absence files an application for
cancellation of registration, setting out the circumstance for cancellation of registration,
accompanied by the tax return referred to in Schedule-11 and the amount of tax payable, to the
concerned Tax Officer within thirty days from the date of occurrence of the circumstance for
cancellation of registration; or if the Tax Officer is satisfied that the registration of a registered
person has to be cancelled due to existence of circumstance for cancellation of registration as
mentioned in Sub-section (1) of Section 11 of the Act, the concerned Tax Officer shall require such
registered person to deposit the outstanding tax and shall cancel the registration of such person and
give information thereof to such registered person or the legal heir and the Department.

(2) After filing an application for cancellation of registration pursuant to Sub-rule (1),
applicant shall submit tax return until receiving the notice of cancellation or for up to three
months.
(3) It shall be the duty of the concerned Tax Officer to notify the applicant whether the
registration is cancelled or not within three months of filing of the application for cancellation of
registration.
⨝ (4) The provision for cancellation of registration of a taxpayer registered in Value
Added Tax, however carrying out the transaction below the threshold prescribed after the
commencement of this Sub-rule, the procedure for deregistration and remaining credit
management of such taxpayers would be fixed by Director General.

  1. Use of registration number: A registered person shall use their registration number in the
    following documents related to the transactions which the registered person carries out, in
    addition to the transactions referred to in Sub-section (6) of Section 10 of the Act:
    (a) Documents relating to income tax,
    (b) Documents relating to application to be made to banks and financial institutions for
    loans exceeding One Lakh Rupees for commercial and industrial purposes,
    (c) Documents relating to import and export.
  2. To issue duplicate copies: (1) In case the certificate of registration of transaction obtained
    by a registered person under Rule 5 is torn, lost or otherwise destroyed, such a registered person
    must file an application for obtaining the duplicate copy of such certificate to the concerned Tax
    Officer accompanied with such an amount as required as the duplication fees Rs. 100 to obtain a
    duplicate copy of such certificate.
    (2) Upon receipt of an application pursuant to Sub-rule (1), the concerned Tax Officer
    shall give a duplicate copy of the certificate of registration of transaction within fifteen days of
    receipt of the application.

  1. Provision regarding tax board: Taxpayer shall keep a tax board in the format prescribed by

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  1. Averie Sparks

  2. Colby Benson

  3. Finley Floyd

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Chapter 2 – Provisions relating to registration

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