Export to nepal

We are in the process of exporting machinery to nepal. We would like to know what are the feasible options available with us.

We are evaluating implications from the point of view of :

1. Customs

2. VAT

3. Excise

Currently we are evaluating the following options:

1. Nepal Customer raises a PO on India Company - India Company raises a PO on Korea (Parent Co) - Ship from Korea (Parent company) to Nepal Customer - Invoice by (Parent Co) to India Company - India Company raises an invoice on Nepal Customer - Payment to India Company by Nepal Customer - Payment to Korea (Parent Co) by India Co.

2. Nepal Customer raises a PO on India Company - India Company raises a PO on Korea (Parent Co) - Ship from Korea (Parent company) to India Company - Ship from India Company to Nepal Customer- Invoice by (Parent Co) to India Company - India Company raises an invoice on Nepal Customer - Payment to India Company by Nepal Customer - Payment to Korea (Parent Co) by India Co.

Your responses will be highly appreciated.

Kindly include any documentation procedures and the relevant rules under the Customs, Excise and VAT for export to Nepal.  

Alos bring out any other options that u may deem fit which saves the compliance and the duty part.

Thanks and Regards,

C.A Sanket Raje

Replies (5)

SANKET RAJE JI,

 Are u registered in central excise, and VAT DEPARTMENT? and machine is second hand?  It seems that you merchant exporter?

 

Many point of duty applicable depends on (ESC) WHAT is the condition of export sales contract? Before discussion these point is main.

 

MEANWHILE In this condition,

  

IF U ARE NOT REGISTERED IN C.EXCISE, as per HAND BOOK OF POLICY PROCEDURES VOL-1(2009-2014) “SAPTA AGREEMENT” CERTIFICATE OF ORIGIN “DEMAND FROM SHIPPER AND CHECK FOR CUSTOM HAND.

 

FOR DUTY AVAILMENT FOLLOW THE EXPORT SALES CONTRACT. IN MY OPINION ALL THE DUTY AND TAXES MAY PAIS BY SHIPPER AS PER (ESC)

 

HAVE U OPENED AN EEFC ACCOUNT, SO THAT WHEN PO WILL DELIVER BY SHIPPER TO YOU SUBMIT IN YOUR BANKER.

 ALL THE RULES AND LAW APPLICABLE BY RESERVE BANK OF INDIA IN THIS REGARD.

 

Hi ...

We are merchant exporter of Garments from Mumbai . One Hongkong based company has sent remittance in USD to us to ship ( surface transport ) to their Nepal counterpart for sale in Nepal . Nepal custom needs Invoice in Indian Rs. 

Is this possible ? We are VAT registered company . 

We understand that there is no drawback for this deal but we need advice that there is nothing wrong from VAT aspect .

Sanjay .

AS PER FOREIGN TRADE POLICY2010-11 PARA 2.40 :- ALL EXPORTS CONTRACT & INVOICES SHALL BE DENOMINATED EITHER IN FREELY CONVERTABLE CURRENCY OR INDIAN RUPEES BUT EXPORT PROCEED SHALL BE RELISED IN FREELY CONVERTABLE CURRENCY.

 

in view of above , no effect occurs.

Regards,

Thank you Rameshkumar ji , 

That means , on our Nepal client , we can raise Invoice either in USD or in Indian Rs. .. and both will be vaild for the bank as well as for VAT authorities . 

I will appreciate if you could throw some more light .

Rgds / Sanjay Pandya 

FOR MORE INFO:-

https://www.mahavat.gov.in/Mahavat/index.jsp

 

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