A statement from City said Tevez — widely reported to be earning £250,000 per week — had been fined four weeks wages following his refusal to play during the club's 2-0 defeat at the Allianz Arena.
The Argentinian international, who has not played for City since the bust-up, was also given a two-week suspension which has been deemed to have already been served and a written warning over his future conduct, the club said.
City said in a statement Tevez had breached five regulations including "an obligation to participate in any matches in which the player is selected to play for the club when directed by a Club official."
Furious City manager Roberto Mancini had accused Tevez of refusing to appear as a substitute when called upon during the Bayern game on September 27.
The Italian manager said the striker was "finished" at the club and would never play for him again.
Tevez insisted the incident was a misunderstanding, saying he had merely refused to warm-up, claiming he had already done so.
Tevez was promptly suspended for two weeks pending a club investigation which concluded last week.
"Following a detailed investigation and associated hearing, a disciplinary panel has upheld the charge of misconduct," City said.
"Five separate breaches of contract formed the basis of the decision by the panel.
"As a result Carlos Tevez has been fined four weeks' wages and has been suspended for a period of two weeks (deemed to have already been served).
"He has received a written warning as to his future conduct."
Tevez has 14 days to decide whether to lodge an appeal to the club's board of directors.
If Tevez appeals he could take his case to the Premier League, a process which could take the saga into December.
Tevez was one of the mainstays of City's campaign last season, captaining the club to success in the FA Cup and contributing to the successful campaign to reach the Champions League.
However the striker's relationship with Mancini remained strained after his unsuccessful bids to broker a move away from Eastlands.
The arrival of Sergio Aguero and Samir Nasri over the summer left Tevez further marginalised, with the playing making just two starts before he was placed on the bench for the ill-fated Bayern clash.
Although he remains available for selection it is highly likely he has played his last game for City, with the club expected to off-load him during the January transfer window.
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