Export to Nepal - Liberalisation
NOTIFICATION No. 21/2004-CENT dated 06.09.2001, prescribes the conditions and procedure for granting rebate on the excise duty paid on materials used in the manufacture or processing of export goods to any country other than Nepal and Bhutan. Now the restriction is only for Bhutan. That is exports to Nepal will also be eligible for input rebate.
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 but at that time, obviously they forgot about amending Notification No. 21/2004, which they have amended now. Anyway, these notifications are effective from 1st March 2012.
But what about Service Tax? In - 12.12.2011, it was pointed out,
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?
Notification No. , Dated: February 22, 2012