Export to nepal (capital goods)

Yes.  You can export to Nepal without payment of duty and tax.

Thank you so much for your response. It is quite useful. Now suppose a case of merchant exporter. He wants to export to Nepal without ED and CST. What documents are to be given by the merchant exporter to the domestic supplier to procure the goods from him and export to Nepal? 

1. Merchant exporter can issue a CT-1 to the supplier, Supplier raise invoice without payment of duty against that CT-1 and without payment of tax against Form H.

Thank you so much. Very useful.