SSI Exemption & Export to Nepal

[jaleshwar prasad]

As per the the  notification no. 8/2003 CE dated 1-3-2003 as amended,export to Nepal and Bhutan were to be considered as Home Clearance but after some notifications as issued in the month of March 2012 whether export to Nepal still will be included for computation of  SSI exemption threshold limit of Rs1.50 crores,

 

Regards,

J Prasad

AI Summary

Exports to Nepal Now Treated as International, Not Home Clearance, for SSI Exemption; RBI Allows INR Transactions. A forum participant inquired whether exports to Nepal are still considered as home clearance for calculating the SSI exemption threshold of Rs 1.50 crores, following changes in March 2012 notifications. A respondent clarified that due to amendments in the trade treaty between India and Nepal, exports to Nepal are now treated like exports to other countries, except Bhutan. Additionally, the Reserve Bank of India allows these exports to be conducted in Indian Rupees.