:
(1) When purchasing by a local body, it shall only purchase from a person, firm, organization or company that has obtained a permanent account number and value-added tax registration certificate from the Internal Revenue Office.
(2) Notwithstanding anything written in sub-rule (1), purchase may be made from persons, firms, organizations or companies who have not obtained a VAT registration certificate in the following cases:-
(a) When purchasing goods or carrying out construction work of an amount less than five thousand rupees,
(b) On purchase of goods which are not subject to value added tax,
(c) in case of receiving consultancy services from a natural person amounting to less than one lakh rupees in a financial year,
(d) in case of contracting services of less than one lakh rupees in a financial year from a natural person, (e) In case of hiring a vehicle, equipment or goods from a natural person or firm for less than one lakh rupees in a financial year,
(f) In a financial year, a natural person or a firm has to pay wages of less than one lakh rupees for maintenance of goods,
(g) In case of renting a house,
(h) If the construction work is to be done by the consumer committee.
(3) Notwithstanding anything written elsewhere in this rule, if any firm or seller in a district designated by the Government of Nepal as a remote area has not obtained a value added tax registration certificate from the relevant Internal Revenue Office, then the suppliers' Up to ten lakh rupees can be purchased from the suppliers in the list.