Export to Nepal - Liberalisation - What about Service Tax?
LAST week, the Government had amended six Central Excise NT Notifications to delete the special procedure for export of goods to Nepal. Those notifications prescribed the procedure, conditions etc. for exports to countries other than Nepal and Bhutan. By Notifications 24-29/CENT dated 05.12.2011, export to Nepal was made just like export to any other country.
Notification No. 11/2005-Service Tax, dated 19.04.2005 grants rebate of Service Tax on taxable services exported to countries other than Nepal and Bhutan.
SIMILARLY, Notification No. 12/2005-Service Tax, dated 19.04.2005 grants rebate of the duty paid on excisable inputs or service tax and cess paid on taxable input services used in providing taxable service exported to countries other than Nepal and Bhutan.
Why Nepal is retained in these two notifications? Has the Board forgotten these notifications or is it intentional?