The department has implemented a provision requiring that payments to index institutions be made only through commercial bank accounts, and fines will be imposed for violations.
The Department of Internal Revenue has instructed businessmen who trade in precious metals or commodities, including gold and silver, not to conduct business transactions from personal accounts.
The directive issued by the department stipulates that the reference institution (a businessperson dealing in precious metals or commodities, including gold and silver) should conduct its transactions only from the account held in a bank and financial institution in the name of the business entity.
‘The reference institution is not allowed to use the personal account or the account held in a bank and financial institution of its employees, family members or any other person,’ the directive states, ‘When the reference institution sells precious metals or commodities worth one million rupees or more at a time, the payment must be made from the account held in a bank and financial institution of the customer or his family.’
If there is any limit on payments made through electronic means, the department has requested Nepal Rastra Bank to make an additional provision mentioning the reference of the reference institution buying and selling precious metals or commodities.
If the aforementioned directive is not followed, legal action will be taken and a fine of up to one crore rupees may be imposed in the directive.
