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Bhatbhateni Super Market v Inland Revenue Department and Others

Friday - Jan 17, 2025 (Updated: Feb 2, 2025)
Dispute resolution / litigation
A legal case involving Bhatbhateni Super Market and Departmental Store Pvt. Ltd. against the Inland Revenue Department and other parties, likely concerning Value Added Tax (VAT) matters and tax compliance issues.
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Introduction


The landmark case of Bhatbhateni Super Market and Departmental Store Pvt. Ltd. versus the Inland Revenue Department marks a significant development in Nepal's tax jurisprudence. This case highlights the intersection of commercial retail operations and tax compliance obligations, particularly concerning VAT regulations. As one of Nepal's most prominent retail chains, Bhatbhateni's legal battle with tax authorities has drawn considerable attention from the business community.

The dispute between one of Nepal's largest retail chains and the tax authorities provides valuable insights into the interpretation and application of VAT laws in the context of modern retail businesses. The case serves as a reference point for understanding the regulatory framework governing large-scale retail operations and their tax obligations. For businesses operating in Nepal's growing retail sector, this case offers crucial guidance on tax compliance requirements and potential challenges.

This case also underscores the evolving nature of tax administration in Nepal, particularly as traditional markets give way to modern retail formats. The outcome of this dispute has implications for how similar businesses structure their operations and manage their tax affairs. It demonstrates the importance of maintaining proper documentation and following prescribed procedures in tax matters, especially for large-scale retail operations handling significant transaction volumes.

For tax practitioners, legal professionals, and business operators, this case provides valuable precedent in understanding the practical application of VAT regulations and the approach of tax authorities towards compliance issues in the retail sector. The arguments and decisions in this case contribute to the broader discourse on tax compliance and administration in Nepal's rapidly modernizing business environment.

Contributors

  • Profile Image of Narayan Chaulagain

    Narayan Chaulagain
    Managing Partner

  • Profile Image of Sudridh Kumar Joshi

    Sudridh Kumar Joshi
    Associate

Practice Areas

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Business Law

Infinity & Partners offers comprehensive corporate governance support in Nepal, focusing on corporate compliance, education law, employment law, foreign investment, infrastructure, information technology, intellectual property, private equity, and taxation. Our services include regulatory compliance, legal advisory for educational institutions, foreign investment facilitation, tax dispute management, and guidance for infrastructure projects and private equity ventures.
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Dispute Resolution

Infinity & Partners provides comprehensive dispute resolution services in Nepal, specializing in both litigation and arbitration across various legal areas, including corporate and constitutional matters. The firm offers expert representation, document preparation, and strategic advocacy for complex disputes in both domestic and international contexts.
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Legal Reform

Infinity & Partners offers expert legal reform advisory in Nepal, specializing in commercial law, law drafting, policy development, and regulatory alignment with global best practices for government and local authorities.
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Civil Law

Infinity & Partners offers comprehensive legal services in Nepal, specializing in civil law, family law, and real estate law under the Muluki Civil Code, 2018. Our expertise includes contract disputes, marriage registration, property division, and land acquisition, ensuring clients navigate the legal landscape effectively.
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