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

[YAGAY andSUN]

Yes, it was due to change in Trade treaty between India-Nepal.  From March on wards, each and every export to Nepal (except Bhutan) will be treated at par with other countries export.   As per RBI notification in this regard, exports are also allowed under INR.

AI Summary

Export classification to Nepal now treated as foreign export affecting SSI exemption computation; invoicing permitted in local currency. Exports to Nepal are reclassified from home clearances to foreign exports for SSI exemption threshold computation, with Bhutan remaining excepted; invoicing and settlement in Indian rupees are permitted under the central bank notification, aligning currency practice with the reclassification.