(1) A public entity shall procure only from the individuals, firms, organizations or companies that have obtained the permanent account number and value added tax registration certificate from the Inland Revenue Office.
(2) Notwithstanding anything contained in sub-rule (1), procurement may, in the following circumstance, be made also from an individual, firm, organization or company that has not obtained the value added tax registration certificate:
(a) In procuring goods or executing construction works of an amount less than twenty thousand rupees,
(b) In procuring any goods, consultancy services or other services on which value added tax is not leviable,
(c) …..
(d) …..
(e) …..
(f) …..
(g) In renting a house, and
(h) In executing a construction work with the participation of users' committee or beneficiary community.
(3) Notwithstanding anything contained elsewhere in this Rule, if there does not exist any firm or seller having obtained the value added tax registration certificate from the concerned Inland Revenue Office in any district specified as the remote area by the Government of Nepal, procurement of up to one million rupees may be made from a supplier included in such list of suppliers available in the district as prepared by the following committee for that district:
(a) Chief, Treasury Controller Office -Chairperson
(b) Representative (officer level), District Administration Office - Member
(c) A technician of the District Technical Office designated by the chairperson -Member
(d) Representative, District Chamber of Industry and Commerce -Member
(e) An officer level employee designated by the chairperson -Member-Secretary
(4) The Treasury Controller Office shall perform the functions of the secretariat of the committee formed pursuant to sub- rule (3).
(5) The Treasury Controller Office shall send the list prepared pursuant to sub-rule (3) to the concerned Inland Revenue Office.