The Nepal Electricity Authority has stated that the VAT amount paid on electricity consumption in the month of Asar will be adjusted in the bill for the month of Bhadra.
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The Nepal Electricity Authority has stated that the value-added tax (VAT) amount already paid by customers on electricity consumed in Ashar will be maintained as an advance payment and adjusted in the bill to be issued in the upcoming month of Bhadra. The Authority has issued a public notice stating that the VAT paid by customers will be adjusted in the Bhadra bill.
The Authority had included VAT in the bills for electricity consumed in Ashar and sent them to customers from Shrawan onwards. After that, the Authority was criticized for including VAT in Ashar bills, even though, according to the new budget provision, VAT was to be levied only from 1 Shrawan. Following this, the Authority sought an opinion from the Inland Revenue Department on the matter. To clarify this, the Department issued a statement on Monday.
Even if the bill for electricity consumption up to 32 Ashar 2083 is received on or after 1 Shrawan 2083, the notice states that VAT will not be levied on such consumption prior to 1 Shrawan, as electricity is included as an essential commodity under Schedule-1, Group 2 of the Financial Act, 2083.
Customers who have paid VAT on electricity consumption prior to 1 Shrawan will receive a discount equal to that amount in the bill they receive in Bhadra.
