Export to Nepal under Rebate if payment received in Indian Currancy

[KALYAN CHAUDHARY]

Hi,

Can I avail the benifit of Rebate of excise duty , if  I Export the material with payment of duty  to Nepal and payment received in Indian Currancy and Commercial / Export Invioce maintain or not ?

[YAGAY andSUN]

Yes, you can.  There is specific Notification in this regard from RBI.

[Mahir S]

Transactions in India rupees with residents of Nepal and Bhutan

Notification No. FEMA/ 17 /RB-2000 dated 3rd May 2000

RESERVE BANK OF INDIA

(EXCHANGE CONTROL DEPARTMENT)

CENTRAL OFFICE

MUMBAI 400001

Published in the Official Gazette of Government of India - Extraordinary - Part-II, Section 3, Sub-Section (i) dated 08.05.2000 - G.S.R. No. 404(E)

In exercise of the powers conferred by Section 3 of the Foreign Exchange Management Act, 1999 (42 of 1999), the Reserve Bank hereby directs that the prohibitions imposed by clauses (b), (c) and (d) of that section shall not apply to any transaction entered into in Indian rupees by or with

i) a person who is a citizen of India, Nepal or Bhutan resident in Nepal or Bhutan;

ii) a branch situated in Nepal or Bhutan of any business carried on by a company or a corporation incorporated under any law in force in India, Nepal or Bhutan;

iii) a branch situated in Nepal or Bhutan of any business carried on as a partnership firm or otherwise, by a citizen of India, Nepal or Bhutan.

(P.R. GOPALA RAO)

Executive Director

[PAWAN KUMAR]

Yes goods can be exported to nepal on payment of duty under rebate claim irrespective of the payment whether received in INR or any foreign convertile currency. please read circular no.961 dt.26.03.2012 (Third Para).

[YAGAY andSUN]

RBI Circular No is 961/04/2012-CX dated 26-03-2012.

AI Summary

Exporters to Nepal Can Claim Excise Duty Rebate Even with Payments in Indian Rupees, RBI Confirms via FEMA Notification. A forum discussion addresses whether goods exported to Nepal with payment received in Indian currency can benefit from an excise duty rebate. Multiple contributors confirm that it is possible, referencing specific notifications from the Reserve Bank of India (RBI) and relevant circulars. The RBI's Notification No. FEMA/17/RB-2000 and Circular No. 961/04/2012-CX are cited, indicating that transactions in Indian rupees with Nepal and Bhutan residents are permissible under the Foreign Exchange Management Act, allowing for the rebate claim irrespective of the currency received.