Government of Nepal, Provincial Government and Local Levels are persons recognized by V.A.T. Act, 2052 and Income Tax Act, 2058 and other legislations. Government is the withholding agent while paying remuneration to the nation servers. In this case if the Government fails to submit a return (like the TDS Return) within the stipulated time in the Act, will IRD be authorized to recover fines from the government? And if Government fails to deposit the TDS amount in the Government’s Unified Revenue Fund, can IRD impose and recover interest upon the amount?
I think the fact that IRD itself is a department under the Ministry of Finance of the Government of Nepal shall not bar IRD from imposing fines and interest and recovering them from a <span style=”text-decoration: underline;”>“person”</span> identified by the tax laws. In nowhere has the laws provided