Core rule: government bodies and entities wholly or partly owned by the Nepal Government must deposit 30% of the VAT amount on covered contract payments in the supplier's name. Rule 6c does not impose this duty on every ordinary private customer.
Example: a covered invoice is NPR 100,000 plus NPR 13,000 VAT. VAT withheld is NPR 3,900: 30% of NPR 13,000, not 30% of NPR 113,000. Before any separate income-tax withholding, the supplier receives NPR 109,100 and NPR 3,900 is deposited against its tax identity.
The supplier records full output VAT of NPR 13,000 and separately reconciles the amount deposited on its behalf. It must not reduce the invoice VAT to NPR 9,100.
Obtain the deposit evidence, correct PAN and payment-period details. Income-tax TDS, where applicable, requires its own calculation and accounting.