Nepal Budget Highlights - 79-80 - APM & Associates

BUDGET HIGHLIGHTS
FY 2079-80
Nepal Budget Highlights 2079-80 Only For Private Circulation
The 14th Budget of the Federal Democratic Republic of Nepal was presented by
Honorable Finance Minister Mr. Janardan Sharma by way of Finance Bill on Jestha
15, 2079 (May 29, 2022) for the F/Y 2079/80 i.e. 2022/23.
The Direct Tax provisions contained in the Finance Bill shall generally apply to F/Y
ending Ashadh 31, 2079 (July 15, 2022) unless specifically stated otherwise. Further,
other provisions shall be applicable w.e.f. from Jestha 15, 2079 or Shrawan 01, 2079 as
the case may be.
This document is intended for private circulation for the use of our clients only
to provide general outline on the topics covered.
Professional Advice to be sought before acting on any information contained

herein.
Sincere Efforts have been made to avoid mistake or error or omission; however,
A.P.M. & Associates does not assume any responsibility for errors or omissions,
if any.
Remarks: Major Amendments for F/Y 2079/80 have been shown in Red.
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TABLE OF CONTENTS
A. KEY BUDGET STATISTICS.............................................................................................3

B. GENERAL TAXATION:...................................................................................................4
C. DIRECT TAXATION (INCOME TAX):..........................................................................8
D. VALUE ADDED TAX.....................................................................................................27
E. EXCISE DUTY..................................................................................................................34
F. CUSTOM DUTY..............................................................................................................54
G. OTHER POINTS:..............................................................................................................79
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A. KEY BUDGET STATISTICS
Statement of Budgeted Income & Expenses
(Amount in NPR. Billion)
Particulars F/Y 2079/80

Amount %
Revenue & Grants:
Revenue 1240.11 69.13%
Foreign Grants 55.46 3.09%
Foreign Loan 242.26 13.51%
Internal Loan 256 14.27%
TOTAL Revenue & Grants 1793.83 100%
Expenses: Amount %
Recurrent Expenditure 753.4 42%
Capital Expenditure 380.38 21.2%
Financing Provision 230.22 12.8%
Fiscal Transfer 429.83 12.8%
TOTAL Expenses 1793.83 100%
Expected Economic Growth Rate for F/Y 2079/80: 5.80%

Average Inflation Rate for C/Y first 9 months: 7.3%
Head wise budget allocation has been done for the programs & projects controlled
by the Central Government, though the under construction projects covered under
the state government and local authority shall be completed by Centre and will be
handed over to the concerned authority.
B. GENERAL TAXATION:
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1. Health Risk Tax

 Cigarette/Cigar : Rs 0.5/Piece Rs 0.6/Piece
 Bidi: Rs 0.25/Piece Rs 0.30/Piece
 Tobacco/Gutka/Pan Masala: Rs 40/Kg Rs 60/Kg
2. Education Service Charge for study at Foreign (No Change)

 2% on foreign exchange amount
 Banks & other Financial Institutions shall have to submit the detail and make
payment within 25th of next month; failure to do so will attract interest @ 15%
pa.
3. Infrastructure Tax (No Change)

 Rs 10/Ltr in Import of Petrol/Diesel/Aero Fuel at custom point.
4. Road Construction & Improvement Fee (No Change)

 Rs 4/Ltr in Petrol
 Rs 2/Ltr on diesel
5. Pollution Control Fee (No Change)

 Rs 1.5 /Ltr of Petrol & Diesel
 Amount to be deposited within 25th of next month by Importer
 Interest @ 15%, if not deposited on time
6. Telephone Ownership Charge (No Change)

 Rs 500 per connection
 In Case of Prepaid: 2% of sim card & recharge amount.
7. Telecommunication Charge (No Change)

 13% 10% to be charged from customer
 But not in case of Inter Connection Charges upto 50% of Repair &
Maintenance
8. Casino Royalty
 Rs 4 Rs 5 Crores annually.
 In case gaming by advanced machines & equipment: Rs 1 Rs 1.5 crore.
 Amount to be paid within 6 months from the commencement of the Fiscal
Year to Culture, Tourism & Civil Aviation Ministry.
 Fine @ 15% p.a. shall be charged in case of non-deposit of Royalty upto 3
months from due date and additional 30% if unpaid for a further period.
 Incase person pays due royalty upto FY 2076/77, fine on such royalty and
50% of additional fine on such royalty, royalty of 2076/77 and its fine by
Chaitra 2078, then balance additional fine upto 2076/77 shall be waived off.
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9. Provision Relating Social Security Tax (Section 17 of Finance Act, 2079):

 1% tax to be deducted as social security tax from natural persons having income
from employment upto Rs. 5,00,000.00 in case of individual and upto Rs.
6,00,000.00 in case of couple.
 The amount as per above point is to be collected as T.D.S.
 Such TDS amount is to be deposited at prescribed revenue head.
 Notwithstanding anything mentioned in point no. 1, SST will not be deducted
from natural person participating in contributory pension scheme or having
pension income.
10. Digital Service Tax (Section 20 of Finance Act, 2079)

 Digital Services provided by non-resident person to Nepalese Consumer is
subject to 2% digital service tax, provided such amount is not less than Rs. 20
Lakhs per annum.
 Such service provider has to deposit relevant tax and submit annual return as
prescribed. Failure to do so shall attract fine of 0.1% pa of transaction amount on
non-filing of annual return and 15% interest on non-deposit of DST. 50% penalty
on short/non deposit of tax.
 Income Tax Act, 2058 shall not be applicable on above. However, the
administration of such tax shall be done by IRD.
11. Special Provisions on tax relief for COVID-19 affected business (Section 21 of
Finance Act, 2079):Note: Only applicable on Taxable Income for FY 2078-79
 75% rebate on applicable tax for person submitting return as per Section 4(4) of
IT Act, 2058 (D-01 return) having annual turnover upto Nrs. 30 lac and income
upto Nrs. 3 lac.
 50% rebate on applicable tax for person submitting return as per Section 4(4 s) of
IT Act, 2058 (D-02 return) having annual turnover more than Nrs. 30 lac and
upto Nrs. 1 crore.
 50% tax on taxable income for person engaged in business of Hotel, Travel,
Trekking, Film Business (Production, distribution and Display), Party Palace,
Media House, Public Road Transportation having turnover more than Nrs. 1 cr.
Additional 3 years of carry forward of loss in addition to period mentioned in section 20(1) of
Income tax act, 2058 shall be available for person engaged in business mentioned in subsection 4
if there is loss in Income Year 2076.77 and 2077.78. (as per finance act, 2078)
12. Special Provision for Encouragement related to Transaction based on Information

Technology
 1% Income Tax to be levied to any person deriving income in foreign currency
for FY 2079/80 from information technology such as BPO, software
programming, cloud computing.
13. Special Provision on Expense Claim on Rent for Transport Service Vehicle
(Section 23 of Finance Act, 2079):
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 Person engaged in Transportation service can claim rent on transport vehicle as

an expense for FY 2077.78 even if the vehicle owner does not have PAN and does
not fulfill the requirement of Section 21 (1) ( 3@). However, the person has to
deposit required TDS as per Section 88(1)(8) to claim rent on such vehicle as an
expense.
14. Special Provision regarding rebate on renewal charges on Companies and private
firm (Section 24 of Finance Act, 2079):
 Any companies registered with Companies Act, 2063 who have not submitted
their annual return upto 2076/77 or private firm registered as private firm
registration act, 2014 who have not renewed their registration can get relief from
fine and interest if they pay applicable charges and 5% of interest and penalty
amount within Poush 2079.
15. Relief in Additional Fine, Charges, Interest and Penalty (Section 25 of Finance
Act, 2079):
 Any Person not having Pan no, but generating taxable income not can get relief
from additional charges, interest and penalty after registration in IRD by filing
ITR for FY 2075/76, 2076/77 and 2077/78 and payment of income tax by Poush
end 2079. If done as prescribed, he shall be free from filing ITR and deposit
Income tax, interest & penalty for previous years.
 Non-filing of ITR and non-deposit of Income tax within the prescribed time shall
attract fines and penalties as per Income Tax Act, 2058.
16. Special Provision for due amount (bakyauta) for Joint Venture Business (Section
26 of Finance Act, 2079):
 Relief on fine, penalty & 50% of interest for Joint Venture entities registered
under Value Added Tax Act, 2052 who have failed to deposit Vat and submit
Vat return upto Chaitra 2078 if filed and deposited within Poush 2079.
 Same relief for Joint Venture entities who have filed Vat return but failed to
deposit Vat amount upto Chaitra 2078.
17. Special Provision for due amount of Excise for Excise registered person (Section
27 of Finance Act, 2079):
 Relief on penalty & 50% of late fee for Excise registered person on self
removal system who have failed to deposit Excise and submit Excise return
upto Chaitra 2078 if filed and deposited within Poush 2079.
 Same relief for persons who have filed Excise return but failed to deposit
Excise amount upto Chaitra 2078.
18. Special Provision for Closing Balance of Lagat Katta (Section 28 of Finance Act,
2079):
 Lagat Katta of Excise registered industries relating to 15 years or old stock can
be applied at IRD or TSO within Poush 2079 based on the referral by IRD
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along with their site visit report on which the decision is pending.
19. Special Provision for Tax Payers opting for Presumptive or Transaction based ITR
filing (Section 29 of Finance Act, 2079):
 Facility of disclosure of additional income for returns filed upto FY 2077-78 for
Taxpayers opting for Presumptive or Transaction based filing of ITR by
declaring actual transaction amount and payment of 1.5 % on the difference of
sales amount for each financial year by Chaitra 2079.
 Same facility available for taxpayers whose tax assessment has completed
within Jestha 14, 2079. The taxpayer can also opt to withdraw if filed for
review at Administrative review, Revenue Tribunal, etc. Remaining Tax,
additional fine, penalty and fee shall be relieved in such case.
20. Special Provision for Vaccine Industry (Section 30 of Finance Act, 2079):
 Exemption on import duty, vat and excise on import of machines required as
per the approved scheme of Vaccine Manufacturing industry in FY 2079-80.
21. Special Provision for Liquid Oxygen Industry (Section 31 of Finance Act, 2079):
 Machineries required for Liquid Oxygen industries falling under HS Code
8421.39.10 is exempted from Customs, Excise & Vat for import during FY 2079-
80.
22. Discount of 2%-15% on electricity will be provided to manufacturing industries

consuming electricity above Rs 10 crores.
23. 8% Rebate on export of items like Clinker, Cement, Steel, footwear, Processed
Water & BPOs related to IT.
24. Interim Administration regarding Registration Charges of Land and Buildings

(Section 32 of Finance Act, 2077):
 Central Government, on behalf of Local bodies shall collect land and building
registration charges and deposit it into fund as prescribed by Inter-government
finance management act, 2074 until the local infrastructure to collect such
charges is ready.
C. DIRECT TAXATION (INCOME TAX):
Rate of Taxation:
 Tax Rate for Natural Persons:
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Particulars Tax Rate

Resident - Remuneration Income:
-Couple (including Widow & Widower having Dependents):
Up to Rs. 600,000 (in form of Social Security Tax) 1%
On Next Rs. 200,000 10%
On Next Rs. 300,000 20%
On Balance up to Rs. 2,000,000 30%
Above Rs. 2,000,000 (Including surcharge of 20% on tax rate of 30%) 36%
-Individual:
Up to Rs. 500,000 (in form of Social Security Tax) 1%
On Next Rs. 200,000 10%
On Next Rs. 300,000 20%
Resident Individual Woman, having only Remuneration Income, shall be entitled
to a Rebate of 10% on Total Tax calculated as above.

Resident - Proprietorship Firm:
-Couple (including Widow & Widower having Dependents):
Up to Rs. 600,000 Nil
On Next Rs. 200,000 10%
On Next Rs. 300,000 20%
-Individual:
Up to Rs. 500,000 Nil
On Next Rs. 200,000 10%
On Next Rs. 300,000 20%

Resident Individuals-Presumptive Tax:
Natural Person having only Business Income with Annual
Turnover up
to Rs. 30 Lakhs and Annual Income up to Rs. 3 Lakhs {removed:
section4(4(u)) & (3) i.e now whether the natural person is
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registered in VAT or not and whether the natural person has

opted or not }, has to pay Tax as below (However, such person
cannot claim medical tax credit or advance tax for TDS deposited):
- In the Metropolitan or Sub Metropolitan Cities Rs. 7,500
- In the Municipalities Rs. 4,000
- In the rest of Nepal Rs. 2,500
 Person selling Cigarette, Gas etc., by adding commission or
profit upto 3% (Turnover 30-50 lakhs) 0.25% of the turnover
 Person selling Cigarette, Gas etc., by adding commission or
profit upto 3% (Turnover 50-100 lakhs) 0.3% of the turnover
 Person engaged on transaction other than above (Turnover
30-50 Lakhs) 1 % of the turnover
 Person engaged on transaction other than above (Turnover
50-100 Lakhs) 0.8% of the turnover
 Person engaged in Service Sector business 2% of Turnover
Tax as above should be paid in 2 installments
1st: Within Poush 20
2nd & Final: Within Ashad 20 based on actual transaction.
Not applicable for Doctor, Engineer, Auditor, Legal Consultant,
Player, Artist, Consultant including other Expert Service Income.
Owner of Public Vehicles (Per Vehicle Per Annum):
A. Car / Jeep / Van / Micro Bus
A.1 Upto 1300CC Rs. 4,000
A.2 1301 to 2000CC Rs. 4,500
A.3 2001 to 2900CC Rs. 5,000
A.4 2901 to 4000CC Rs. 6,000
A.5 4001CC and above Rs. 7,000
B. Mini Truck, Mini Bus, Water Tanker Rs. 6,000
C. Mini Tipper Rs. 7,000
D. Truck, Bus Rs. 8,000
E. Dozer, Excavator, Loader, Roller, Crane and other like machinery
equipment Rs. 12,000
F. Oil Tanker, Gas Bullet, Tipper Rs. 12,000
G. Tractor Rs. 2,000
H. Power Triller Rs. 1,500
3 Wheeler / Auto Rickshaw / Tempo Rs. 2,000
Gain from Disposal of Non Business Chargeable Assets:
[After taking into consideration exemption limit (i.e. Rs.
400,000 for individual and Rs. 450,000 for couples]:
- From Disposal of Land & Building on any amount (owned for 5
Years or more) 2.50 %
- From Disposal of Land & Building on any amount, (owned for 5%
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less than 5 Years)

- From Disposal of Listed Securities (Gain to be calculated
Weighted Average basis 5%
- From Disposal of Other Non-Business Chargeable Assets
(including Non Listed Securities) 10 %
25 %
Non Resident Individuals: on any Amount
Note:
 Husband and Wife, having separate income source, are given option either to get
assessed separately as individual or jointly as couple.
Changes in Definition Section(2):

 Subsection(b(2)) Clarification: Non Business Chargeable Assets in case of Natural
Person: earlier clarification of ” building and land covered by building” has been
replaced by “building, land covered by building and additional land area
equivalent to the land covered by building”
 Subsection (sd): Commission word has been removed from the definition of
Service Fee.
Further Deductions / Facilities for Resident Natural Persons:
Resident Disabled/Incapacitated person shall get an additional 50% of Exemption

Limit (i.e. 50% of Rs. 600,000 in case of Couple & 50% of Rs. 500,000 in case of
Individual).
Individual having Life Insurance Policy shall get an additional exemption from
the Taxable Income to the extent of Rs. 40,000 (earlier Rs. 25,000) or Premium
Amount, whichever is lower.
Individual having Health Insurance Policy shall get an additional exemption from
the Taxable Income to the extent of Rs. 20,000 or Premium Amount, whichever is
lower.
Annual Remote Area Allowance up to Rs. 50,000 (depending upon Remote Area
Category) is exempted from tax.
Employees working in Nepalese Diplomatic Mission abroad are allowed 75%

exemption on Foreign Allowances.
Contribution in Approved Retirement Fund is deductible to the limit of 1/3 rd of

Assessable Income or Rs. 300,000 whichever is lower.
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Individual having Pension Income, contributing on contribution based pension

fund and social security fund shall not be liable to pay 1% SST.
Compensation received in respect of death of natural person is not taxable [Sec 31

(2)].
In case any person contributes any amount to Prime Minister Relief Fund or
National Reconstruction Fund established by Government of Nepal during any
Income Year, the amount can be deducted while calculating taxable income of the
person during the Income Year.
Insurance premium of self owned house by a resident natural person shall be

allowed as expense upto premium amount or Rs 5000, whichever is less.
Individuals having pension income shall be allowed to deduct 25% of first slab as
defined for Natural Person.
Tax Credit for Resident Natural Persons:
In case of Approved Medical Expenses, Medical Tax Credit for Rs.750 or 15% of
Approved Medical Expenses or Actual Approved Medical Expenses incurred
whichever is lower is available to resident natural persons as deduction from tax
liabilities. Unutilized Expenses, if any, can be carried forward to Next Financial
Year.
Where Foreign Income is included in Taxable Income of a Resident Natural

Person, Foreign Tax paid in Foreign Country can be (at the option of the Tax
Payer): i. Deducted as Expense or ii. Tax Liability in Nepal be reduced by such tax
paid up to the Average Rate of Tax applicable in Nepal.
 Tax Rates for Entities:
Bank, Finance Company, General Insurance Company, Telecom and

Internet Service Providers, Money Transfer agent, Capital Market 30%
organizations, Stock Exchange, Stock and Commodity Brokers,
Merchant banking company, Commodity Future Market, Petroleum
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Entities, Cigarette, Tobacco, Beer and Alcohol Company

Co-operative Institution registered under Co-operative Act, 2074
(other than co-operatives dealing in Exempted Transaction) except as
mentioned below:
 Co-Operative running in Municipality area 7.5%(earlier 5%)
 Co-Operative running in Sub-Metropolitan area 10% (earlier 7%)
 Co-Operative running in Metropolitan area 15% (earlier 10%)
Private Ltd. Co. / Limited Co. / Partnership Firm not specifically
25%
mentioned above
Non-resident person Providing Shipping, Air Transport or
5%
Telecommunications Services in Nepal
Repatriation of income of a Foreign Permanent Establishment of a
5%
Non- Resident situated in Nepal.
Non Resident Airline Services having office in and business in Nepal
2%
but not operating flights to and within Nepal
Agriculture Income other than those derived by any firm, partnership
Nil
or company.
Note: Trust of Dead or Incapacitated Person shall be taxed as natural Person.
 Tax Concessions & Rebate (Sec 11):

Agriculture Income other than from firm, company,
partnership or institution and other than as mentioned in Sec 12 100% Exempt
(3 & F) of Land Related Act, 2021 (Sec 11(1))
Agriculture Income, De-Hydrated Vegetable & Cold Storage  100% Exempt (earlier 50%)
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Income from firm, company, partnership or institution (Sec

11(1))
Income of Specified operation of Co-operative Society
 100% Exempt
established in Remote Area under Co-operative Act, 2074 (Sec
 Dividend Tax Also Exempt
11(2))
Annual interest up to Rs. 25,000 in the amount deposited to the
Micro Credit Institutions, Rural Development Banks, Postal
100% Exempt
Saving Bank, and Co-operatives as mentioned in Sec 11(2) in
the rural area (Sec 11 (2 s))
Profit on Income from Special Industry – For Natural Person
20% where Tax Rate is 30%
(Sec 11(2 v(s))
Profit on Income from Special Industry – For Entities (Sec
20% Rebate on Applicable Tax
11(2v( v))
Any additional benefit if available can also be availed by the person
enjoying exemptions u/s 11(2 v(s)) and 11(2 v(v))
Special Industries & I.T. Industries providing direct
employment to 100 or more Nepalese Nationals throughout the 90% of Applicable Tax
year (Sec 11(3)( s))
employment to more than 300 and upto 500 Nepalese Nationals 80% of Applicable Tax
throughout the year (Sec 11(3)( s))
employment to more than 500 and upto 1000 Nepalese 75% of Applicable Tax
Nationals throughout the year (Sec 11(3)( s))
employment to more than 1000 Nepalese Nationals throughout 70% of Applicable Tax
the year (Sec 11(3)( s))
employment to 100 Nepalese nationals of which, 33% are 10% additional discount on the applicable
women, dalits (the downtrodden) or the handicapped, tax including above mentioned benefit
throughout the year (Sec 11(3)( s))
Special Industries operating in Highly Undeveloped Area. (Sec 10% of Applicable Tax for 10 Yrs from the
11(3)(v)) year of operation or production
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Special Industries operating in Undeveloped Area (Sec 11(3) 20% of Applicable Tax for 10 Yrs from the
( v)) year of operation or production
Special Industries operating in Under-Developed Area (Sec 30% of Applicable Tax for 10 Yrs from the
11(3)( v)) year of operation or production
Special Industries operating in Karnali Province & Hilly
0% of Applicable Tax for 15 Yrs from the
Districts of Far-Western Province (Sec 11(3)( v)) employing
year of operation or production
more than 100 Nepalese citizen
Special Industries and Tourism Industries (except Casino)
established with a capital investment of Rs. 200 crores or more A Rebate of 100% for first 5 Years & 50 %
and providing direct employment to 300 or more persons for next 3 Years on Applicable Tax
throughout the year (Sec 11(3)(u))
Special Industries, already in operation, which enhances 25% of

A Rebate of 100% for first 5 Years & 50 %
its installed capacity and increases its capital investment to Rs.
for next 3 Years on Applicable Tax on
100 crores or more and providing direct employment to 500 or
income from such enhanced capacity
more persons throughout the year (Sec 11(3)(u))
Industries established in Special Economic Zone (SEZ) of

A Rebate of 100% for 10 Years & 50 %
Himalayan Districts and other prescribed Hilly District (Sec 11(3
thereafter on Applicable Tax
s)(s))
Industries established in Special Economic Zone (SEZ) of Other A Rebate of 100% for 5 Years & 50 %
Areas (Sec 11(3 s)( v)) thereafter on Applicable Tax
Dividend distributed by Industries established in Special A Rebate of 100% for first 5 Years & 50%
Economic Zone (SEZ) (Sec 11(3 s)(u)) for next 3 Years on Dividend Tax
Income from Foreign Technology, Management Fee and

Royalty earned by Foreign Investors from industries A Rebate of 50% on Applicable Tax
established in Special Economic Zone (SEZ) (Sec 11(3 s)(3)
Person engaged in Mining Research & Extraction of

A Rebate of 100% for first 7 Years &
Petroleum Products, Energy and Natural Gas, if
50 % for next 3 Years on Applicable
commercially starts the transaction within Chaitra End 2080
Tax
(Sec 11(3 v))
Industry related to Software Development, Data Processing,

Cyber Cafe, Digital Mapping established at prescribed
A Rebate of 50% on Applicable Tax
Information Technology park , and Technological Park
related to Zoology, Geology and Biotech (Sec 11(3 u))
Entity licensed to generate, transmit and distribute electricity, A Rebate of 100% for first 10 Years & 50
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if commercially starts generation, generation & distribution,

distribution of hydropower by end of Chaitra 2083. The
facility is available also for Solar, Bio-gas and Wind Energy.
[However, entities already having started commercial % for next 5 Years on Applicable Tax
production of electricity prior to introduction of the above
provision shall be eligible for facility as prevalent at the time
of obtaining license.] (Sec 11(33))
Hydropower of more than 40 MW (earlier 200 MW) with A Rebate of 100% for first 15 Years & 50
financial closure if done by Chaitra 2085 (Sec 11(33)) % for next 6 Years on Applicable Tax
Profit on Export Income – For Natural Person (Sec 11 (3 `)(s)) 15% where Tax Rate is 20/30%
Profit on Export Income – For Entities (Sec 11 (3 `)(v)) 20% Rebate on Applicable Tax
Profit on Export Income from Manufacturing Industry– For

Additional 50% Rebate (earlier it was 35%)
Natural Person (Sec 11 (3 ` )(u))
Profit on Export Income from Manufacturing Industry– For

Additional 50% Rebate (earlier it was 35%)
Entity (Sec 11 (3 `)(u))
Entity Operating Tram or Trolley Bus (Sec 11 (3 r)(s)) 40% Rebate on Applicable Tax
Entity engaged in Construction and Operation of Ropeway,

Cable Car, Sky Bridge (Sec 11 (3 r)(v))
Entity engaged in Construction and Operation of Road, Bridge,

Tunnel, Under Pass, Railways, Airports (Sec 11 (3 r)(u))
Listed entity engaged in Manufacturing, Tourism,

Hydropower generation, distribution & transmission and
specified Industry established in special economic Zone u/s
11 (3 5)
Industries manufacturing Brandy, Wine, Cider from fruits in

40% and 25% Rebate on Applicable
Very Undeveloped Area and Undeveloped Area (Sec 11
Tax for 10 Years from Operation Date
(3h))
Royalty Income from the Export of Intellectual Property (Sec

11 (3em)
Income from Sale of Intellectual Property (Sec 11 (3~f)) 50% Rebate on Applicable Tax
Tourism Related Industry or Airline Company operating A Rebate of 100% for first 5 Years & 50 %
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International Flights with capital investment of Rs. 200 for next 3 Years on Applicable Tax on
Crore or more (Sec 11 (3 6)) income from such enhanced capacity
Capitalization of Reserve and Surplus by a Special Industry,

100% Tax exemption on Dividend
Agro Based Industry, or Industry related to Tourism by
Distribution Tax
issuing Bonus Shares (Sec 11 (37)
Conversion of existing pvt ltd. Company with minimum

paid up capital of Rs. 50 crore into public company Tax Rebate of 10% on applicable tax for
[However, companies mentioned in Sec 12 of Companies Act, 3 yrs from the date of such conversion
2063 are not eligible for this benefit] (Sec 11 (38)
Domestic Tea Production and Processing industry, dairy

industry engaged in milk products and garment industry Tax rebate of 50% on applicable tax rate
(Sec 11 (39)
Health Center Run by Community Centers (Sec 11 (30f)) 20% Tax Rebate on applicate tax rate
 100% tax rebate for 7 years from

For Micro Scale Industries (As defined in Industrial the date of start of business
Enterprises Act, 2073, Section 15 (1)(Ka)) (Sec 11 (3 t))  Additional 3 years tax rebate of
100% incase run by female
Entity wholly engaged in the (BOOT) projects conducted so as
to build public infrastructure, own, operate and transfer it
to the Nepal Government & in power generation,
transmission, or distribution (Sec 11 (3 y))
 50% rebate on applicable tax for 3

years from start of production
 25% rebate on applicable tax for
Special Industries established in Industrial Corridors (Sec 11
next 5 years
(3b)
(Earlier it was 25% rebate on
applicable tax for 5 years from the date
of production.)
Income from sale of locally manufactured raw materials
and/or auxiliary materials to Special industries Section  20% rebate on applicable tax
11(3w)
Startups as listed by the department having turnover upto 1  100% exemption for 5 years from
Crore section 11(3g) the start of business
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 100 % exemption for first 3 years

Special Industry operating in Kathmandu valley if shifted
 50% rebate on applicable taxfor
out of Kathmandu Valley Section 11(3k)
next 2 years

Industries using only used objects a having direct impact on
years from start of production
environment as raw materials production of new items
Section 11(3km)
next 2 years

years (earlier 3 years) from start of
Industries manufacturing vaccine, oxygen gas or sanitary
production
pads Section 11(3a)
next 2 years
Industries manufacturing or assembling electric vehicle if  40% rebate on applicable tax for 5
established within Asadh 2082 Section 11(3e) years from start of production
Industries manufacturing agriculture tools if established  100% rebate on applicable tax for
within Asadh 2082 Section 11(3d) 5 years from start of production
Note:
 Section 11u regarding non-disclosure of Income Source has been removed (as
introduced in revised budget of FY 2078/79).
 Section 12(u): Seed capital provided to maximum of 5 startups upto Rs 1 Lakh per
startup can be claimed as allowable expense.
 In case a person is eligible for above tax concession / rebate under more than one
category; it shall have the option to choose only one type of tax concession / rebate
except as per Sec 11 (2 s).
 Rs 1 Million or 10 % of Assessable Income shall be allowed as expenses if incurred for
preservation of national religious and cultural heritage sites in Nepal and development
of sports infrastructure, with prior approval from the Inland Revenue Department.
 Income Tax on Drinking water, sanitation and cleanliness department/organization
registered under Water Resource Act, 2049 (Jalshrot) on the income upto the extent of
its objectives.
 Taxes paid to provincial government and local bodies can be claimed as expenses.
 Payment of Salary & Wages to employees/workers not registered in Pan will be treated
as inadmissible expenses w.e.f. FY: 2076-77 (Sec 21(1)(31) except for daily casual
workers upto Rs. 3000.00 (not to permanent staffs).
 Expenses booked based on invoices of Non-Pan registered parties and purchases of
agriculture goods, forest goods, husbandry related goods or other household related
17 | P a g e
goods from Natural Person upto Nrs. 2,000.00 will be treated as admissible expenses
w.e.f. FY: 2076-77. (Sec 21(1)(32)
 Compulsory Bio-metric registration for all registered person in concerned offices within
stipulated time. (Sec 78)
 Liability of payment of all kind of taxes shall be of the actual beneficiary if the business
is not registered in the name of beneficiary. (Sec 110 u)
TDS (Tax Deduction at Source):

 Payments that attract TDS: TDS on following payments needs to be deducted at
below given rates:
Particulars TDS Rate
Normal Rate of
Remuneration (Sec.87) Individual(deductible on
Equal Monthly Basis)
Investment Returns & Service Fees (Sec.88):
-Natural Resource Payment 15%
-Rent to Individuals 10% *
-Rent to VAT registered Vehicle Service provider 1.50%
-Rent to Others 10%
-Royalty 15%
-Gain from Investment (Life) Insurance 5% *
-Gains from Unapproved Retirement Fund 5% *
Service Fees:
- Paid to Service Oriented Resident registered under VAT 1.50%
- Paid to Resident Entity doing VAT Exempted
1.50%
Transaction.
- Paid to Others 15%
-Meeting Allowances (More than Rs. 20,000 shall treated as
15% *
AIT)
-Commission 15%
-Commission paid by Resident Manpower Companies to
5%
Non Residents
-Bonus on Sales 15%
-Aircraft Lease Payment 10%
-Lump Sum Retirement Payment from Approved Fund &
Nepal
Government under Sec 65(1 v) [in excess of 50% of payment to 5% *
an 15% *
individual or Rs.500,000 whichever is higher)
Teaching on Period Basis
Dividends:
-Distributed by Resident Companies 5% *
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-Distributed by Partnership Firms 5% *

-Distributed by Resident Entity (other than Companies
-
& Partnership Firms)
-Gain Payment by Mutual Fund to Individuals 5%*
-Distributed to Mutual Fund -
Interest:
-On Deposits / Debentures from Resident Bank, Finance
Companies or listed companies and on Govt. Bonds to 5% *
Individuals not related to business.
-To Mutual Fund -
-To Others (not stated above) 15%
-From Bank to Banks Nil
Contract # Payments above Rs. 50,000 1.50%
Contract # Payments to Non- Residents:
- Contracts related to Air Craft Repair* 5%
- Contracts or agreements 5%
-General Insurance Premium paid to Non-Resident Co.* 1.50%
-General Insurance Premium paid to Resident Co. -
-Payment to non-resident person under a contract* 15%*
Others
Wind Fall Gain (Prizes, lotteries, or any other casual income
either in cash or in kind). [However, there shall be no Windfall
Gain Tax or amount up to Rs. 5 Lacs prize received on
25%
National or International Level on account of contribution to
Literature, Art, Games, Journalism, Science, Technology and
Public Administration)
Gain from Commodities Future Market Transactions 10%
Gain from Disposal of Listed Securities (to be deducted by
Nepal Stock Exchange)
-To Resident Individuals (Long Term Holding: more than
5%
365 days)
-To Resident Individuals (Short Term Holding: Less than
7.5%
365 days)
-To Other Resident entities except natural persons (not
applicable to Resident entity established under prevalent 10%
laws for dealing in purchase/sale of securities)
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-To Others 25%

Gain from Disposal of Non- Listed Securities (to be
deducted by respective companies) [Other than Gain on
Disposal by Mutual Fund] (Approval of such disposal will
be allowed by OCR only if the proof of payment of such tax
is shown to the office)
-To Resident Individuals 10%
-To Others (not applicable to Resident entity established
under prevalent laws for dealing in purchase/sale of 15%
securities)
-To Others 25%
Capital Gain from Disposal of Land and Building in case of Natural Persons: (to be
deducted by respective Malpot Office at the time of Registration)
- Owned for a period below 5 Years 7.5%
- Owned for 5 Years or more 5%
- Other Cases: Disposal of Land & Building
(to be deducted by respective Malpot Office at the time of 1.50%
Registration on Transaction value)
Payment against use of Satellite, Bandwidth, Optical Fiber,
10%
Telecom related equipment or electric transmission line
Payment of Transportation Charges to transport service
providers 2.5%
(Final Tax for payment to Natural Persons)*
Payment of Rent for Vehicle of Goods Transportation or
Goods Transportation service by Natural Person Excluding 2.5 %*
Sole Proprietorship Firm
Payment of Rent for Passenger Vehicle by Natural Person
10%*
Excluding Sole Proprietorship Firm
Payment of Transportation Charges to transport service
providers 1.5%
(In case registered in VAT) REMOVED
On Payment of more than 50 Lacs to consumer committee
1.5%
(Upabhokta Samiti) for any work
On Import of goods/ Items mentioned in Part 1 such as
Buffalo, Goat, Sheep etc; Part 3 such as Fishery items; Part 6
5% of declared rate at
such as Fresh Flowers; Part 7 such as Fresh Vegetables,
respective custom point
Potato, Onions and Part 8 such as Fresh Fruits of customs
tariff
On Import of goods/ Items mentioned in Part 2 such as 2.5% of declared rate at
Meat, etc; Part 4 such as Milk Products, Egg, Honey; Part 10 respective custom point
such as Kodo, Phapar, Junelo, Rice, Kanika; Part 11 such as
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Maida, Wheat Flour; Part 12 such as Herbs (Jadibuti),

Sugarcane; and Part 14 such as Vegetable Products of
customs tariff
On Interest Payment on Loan taken by resident banks or
other financial institutions for investment in areas notified 10%
by NRB
Exchange rate facilities on examination fees of students by
15%
banks & financial institutions
Payment to Foreign School or University 5% of payment amount
Interest on deposits of Life Insurance company paid by
5%
Resident Bank and Financial Institutions
Receipt of Foreign Currency for Sale of Software or other
1%*
electronic service at Bank or Money Transfer Institutions
Royalty payment for Literature work to Resident Person 1.5%
* Denotes Final Tax Payment.

# Notes:
 Rs. 50,000 referred to in Sec. 89 shall be determined by aggregating a payment
under a contract with any other payment made by the person or an associate of
the person during the previous 10 days under the same contract to the same
payee or an associate of the payee.
 Contract has been defined as agreement entered into for supply of goods or
labour or construction/erection/establishment of tangible assets or structure or
any work prescribed as contract by the Inland Revenue Department.
 Payment for Services to VAT Registered Party shall attract TDS @ 1.50 % for VAT
Registered Party & 15% for Non VAT Registered Party.
Payments that do not attract TDS:

 Payment of remuneration to the writer of the articles published in Newspaper
& Magazines.
 Payment of remuneration for preparation of question paper or checking of
answer sheet.
 Interregional interchange charges paid to a bank issuing Credit Cards.
 Payment by individual other than payment in course of business.
 Payment of Interest / Dividend to Mutual Fund.
 Payment of interest to a resident bank or other resident financial institution.
 Payments to Tax-exempted entities.
 General Insurance Premium paid to Resident Companies.
 Payment of Dividend by entities other than Company and Partnership Firm.
 Payment of Annual interest up to Rs. 25,000 in the amount deposited to the
Micro Credit Institutions, Rural Development Banks, Postal Saving Bank, and
Co-operatives in the rural area.
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 On payment for purchase of goods and services through card, e-money

(wallet), mobile banking
TDS Deposit & TDS Return Submission:

 TDS amount should be deposited within 25 Days from the Nepalese Month
End in which such TDS is deducted. For non-deposit of TDS amount, Interest
@ 15% of TDS amount per annum shall be levied.
 TDS Return should be submitted within 25 Days from the Nepalese Month
End in which such TDS is deducted. For non-submission of TDS Return, Fee
@ 2.50% of TDS amount per annum shall be levied. (Sec 117(3))
Advance Income Tax:

 Income Tax for F/Y should be paid in 3 installments as follows:
Instalment Time Period Amount
First Up to Mid-January (Poush end) 40%
Second Up to Mid- April (Chaitra end) 70%
Third Up to Mid-July (Ashadh end) 100%
 Where an instalment of tax paid by a person is less than 90% of Tax Payable,
interest shall be levied @ 15% for each month and part of month from the date of
first installment on the amount of installment payable.
 The presumptive tax-payers need not require paying any advance tax as above.
 Further if the Tax Amount for the F/Y is less than Rs. 7,500.00, installment is not
required to be paid.
 For failure to pay Tax; Interest at 15% per annum shall be levied for the period of
failure to pay tax, considering part of a month as a complete month.
Filing Annual Income Tax Returns

 Annual Income Tax Return should be filed within 3 months from the end of an
Income Year i.e. Ashwin end (i.e. Mid October). However, a taxpayer may have
the due date extended [Maximum Allowed extension: a period of 3 months i.e.
up to Poush end (Mid-January)] upon filing an application with the respective
IRO with bona-fide reasons for such extension. The decision for extension
(whether or not to grant extension & period for which to grant extension) rests
exclusively with the IRO.
 Individual assesse having income more than Rs. 40 Lakhs in a income year is
liable to file Income Tax Return as per Sec 96. (Sec 97(2))
 Revised return can be filed within 30 days from the date of filing of original
return as per procedure specified by IRD. (Sec 96(6))
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Deposit: Section 116

 Section 116 (5) – For cases to be filed as per this law at Revenue Tribunal, deposit
or Bank Guarantee of 50% of disputed amount (including fine) and cash/bank
payment receipt of 100% of non-disputed amount to be submitted.
 Section 116 (6) – For calculation of deposit amount (Cash or Bank Guarantee) as
per Section 33(1), 25% amount as submitted during filing case at Administrative
Review shall also be included.
General Rate of Interest levied by IRD:

 General Rate of Interest levied by the IRD to the assesse continues to be 15%.
Deduction for General Insurance Business:

 Following Expenses continues to be allowable as deductible expenses for
General Insurance Business:
i. 50 % of Net Insurance Premium provided for Unexpired Risk &
ii. 115 % of outstanding claim at year end as per Insurance Act/Rules.
 However, amount deducted as expenses above in a year should be included in
the Income of next year for calculating such business income or loss for next
year.
Set Off /Carry Forward of Loss:

 Loss from Business of a person in a year can be set off against any other Business
Income & Investment Income of that year.
 Loss from Business can be carried forward up to 7 years for set off against
Business Income and Investment Income.
 Loss from Investment of a person in a year can be set off against any other
Investment Income of that year.
 Loss from Investment Income can be carried forward up to 7 years for set off
against Investment Income.
 Carry Forward of Loss can be made up to 12 years in case of Projects building,
operating & transferring public infrastructure to the Nepal Government, Projects
building Electricity Production House, generating & transmitting electricity and
entities dealing in petroleum products under Nepal Petroleum Act, 2040.
 Loss incurred in business or investment where assesses enjoys full tax exemption
cannot be carried forward.
Penalty for Non-Filing of Income Tax Return on Time:

 Non-Filing of Estimated Income Tax Return Income u/s 95 within due date shall
attract penalty of Rs. 5,000.00 or 0.01% of the Taxable Income whichever is higher
per Return. (Sec 117)
 Non-Filing of Income Tax Return Income u/s 96 within due date shall attract
penalty of @ 0.10% of Annual Turnover (including all incomes) or Rs. 100 per
month whichever is higher. (Sec 117)
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Administrative Review
- Provision has been to file an application in the department for the
administrative review in the cases related to Income Tax/VAT by
depositing 1/4th of disputed tax amount and 100% of undisputed tax
amount (Sec 115(6))
- Applicant can apply to Revenue Tribunal if IRD doesn’t give information of
the decision within 60 days
- Applicant has to submit the copy of application to Revenue Tribunal to IRD
within 15 days of filing such application
Sundries:
 Sec 127 - If a person knowingly Helps, Advice or Influences for Abetment/
Crime under this act or certifies false financial statements or false tax audit report
or provide false consultancy, such person is liable for half of the punishment
which would be provided to default assesse under this Act.
However, if such person is government employee, then he shall be liable for
equal punishment given to the assesse.
 Unless otherwise specified in this act, a person is liable to pay fine and penalty
from Rs 5,000 to Rs 25,000 for failing to adhere provisions under this act or rules
under this act as per Section 119 Ka.
 Compensation received by a resident natural person on account of physical
injuries due to personal accident shall not be included in his income; likewise,
Medical Expenses incurred in the treatment for such accident cannot be claimed
for Tax Adjustment.
 Section 97 (1) (e): No need to file Income Tax Return to natural persons having
income only from sale of non-business chargeable assets subject to sec 97(2) or
unless specified by IRD.
 Section 110Kha: Person engaged in JV shall be jointly and severally liable to pay
Income Tax.
Payments above Rs. 50,000:

 Payment above Rs. 50,000 through Account Payee Cheque (instead of Bearer
Cheque) has been made mandatory for eligibility of deduction of expenses
 Further elaboration in this regard:
A person having annual turnover for an income-year shall not be allowed a
deduction for a Cash Payment in excess of Rs 50,000 incurred other than in the
following conditions by the person during the year:
 Payment is made to Nepal Government, a constitutional body, a corporation
owned by Nepal Government, or a bank or financial institution;
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 Payment is made to a farmer or a producer producing primary agricultural

products even in the case where the product is primarily processed by the
farmer himself;
 Payment is a retirement contribution or retirement payment;
 Payment is made in an area where banking services are not available;
 Payment is must necessarily be made in cash or on a day when banking
services are closed; or
 Payment is made into a bank account of the payee.
Cash Payment means a payment other than made through a bank or financial
institution by way of letter of credit, Account Payee Cheque, Draft, Money
Order, Telegraphic Transfer, Money Transfer (Hundi), and any other form of
transfer made between two banks or financial institutions.
Tax Payment in Installment:

 Before an assessee is sued on account of non-payment of income tax; if the
assessee requests in writing for payment in installment; the tax officer may
permit payment in installment over a reasonable period of time.
 In case of non-payment of income tax within extended time as stipulated above;
additional interest @ 5% per annum shall be levied on the remainder tax amount.
Special Provisions related to Merger of Banks & Financial Institutions and

between Insurance Companies (Sec. 47 s)
- Change in Control Provision of Sec. 57 shall not apply.
- Loss till the date of Merger can be carried forward and set off in pro-rata
basis in next 7 years post-merger (However, in case of demerger later on,
Tax on such Set Off amount has to be repaid).
- 50% Reduction in applicable tax rate to employees for lump sum payment
(other than Retirement Fund Payments & Payments mentioned in the
Employees’ Service Contract in case of group retirement of employees due to
merger.
- No Capital Gain Tax shall be levied on disposal of shares by shareholders of
merged entity till 2 years from the date of merger.
- No tax on dividend till two years which is paid to shareholders of the time of
merger.
- Notification to IRD should be given within Ashadh end, 2079 and merger
should be done within Ashadh end, 2080 for the purpose of this section.
- Entities who have been merged as per this provision, after effectuation of this
provision, but not utilized facilities under this provision, shall be able to utilize as per
25 | P a g e
this provision.
Loan Loss Provision

- 5% of Realizable Loan kept aside in Risk Bearing Fund and 5% of the
provisions made for Non Banking Assets, as per the Guidelines of Nepal
Rastra Bank, shall be allowed as deduction for Income Tax purpose for
person carrying on Banking Business.
- Loan Loss Provision up to 5% of Realizable Loan kept aside in Risk Bearing
Fund, shall be allowed as deduction for Income Tax purpose for Co-
operative Entities.
Additional Deductions
- Manufacturing Industries may deduct 50% of capital amount for Power
Generating Assets in the year of acquisition as Additional Depreciation.
(Sch-2, Sec. 3(3))
- Capital Expenditure incurred for purchasing Fiscal Printer and Cash
Machine can be claimed as depreciation in the year of purchase.
D. VALUE ADDED TAX

(VAT): Rate of VAT:
 Rate of VAT continues to be 13%.
Threshold for Mandatory VAT Registration:

 Compulsory VAT registration for a person importing taxable items exceeding the
value of Rs 10,000 at a time for commercial purpose.
 Turnover in excess of 50 Lacs (dealing in goods) during preceding last 12
months.
 Turnover in excess of 20 Lacs (dealing in Services) during preceding last 12
months.
 Turnover in excess of 20 Lacs (dealing in digital service by non-resident person)
during preceding last 12 months as per the process defined by IRD. (Section
10v1)
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Threshold for Mandatory VAT De-Registration:

 Section 11 (1) 6: Incase taxable transaction of person is less than Rs. 50 lakhs of
trading and less than Rs.20 lakhs in trading and service or service business, tax
officer has to de-register the VAT of such persons.
 Section 11 (2): Notwithstanding anything mentioned in subsection (1) (5), a
person registered as per section 9 and desirous to remain registered can apply as
per specified format along with transaction details of last 12 months.
 Section 11 (6): Any other procedure relating to de-registration not mentioned in
this section will be as per specified.
Mandatory VAT Registration for Operation of Stipulated Business / Stipulated

Goods at Stipulated Area
 Bricks Manufacturer, Liquor, Wine, Health Club, Discotheque, Massage Therapy,

Motor Parts, Electronic Software, Clearing Agent, Toy Business, Trekking,
Rafting, Ultra-Light Flight, Paragliding, Tourism Transportation, Crusher, Slate
and Stone Industries has to get registered under VAT. (Sec 10 s)
 Hardware, Sanitary Fittings, Furniture, Fixtures, Furnishing, Automobiles,
Electronics, Marbles, Educational Accounting & Auditing Services, Catering
Service, Party Palace Business, Parking Service, Mechanically operated Dry
Cleaning Service and Restaurant with Bar, Color Lab, Boutique, , Ice cream
Industry and Supply of Uniforms to Educational Institute/Health
Institute/Other entity operating in Metropolitan, Sub-metropolitan Areas and
other areas specified by Inland Revenue Department has to get registered within
under VAT. (Sec 10 v)
 Compulsory Bio-metric registration for all registered person in concerned offices
within end of Asadh 2077. (Sec 10 u read with Rule 7 v)
VAT Register:
 Section 16 (3) - Any registered or un-registered person doing business of goods
or services shall keep a self-attested Sales & Purchase Register for each fiscal
year. Such register can be checked by Tax Officer at any time.
 Section 16 (3s) – Removed
Adjustment of VAT paid in items bearing loss: Section 16 v
VAT paid in items damaged or lost due to fire, theft, accident, breakage, destructive
activity or expired goods can be taken as credit as per prescribed rule.
Tax Assessment by Tax Officer:

Section 20 (4v): Tax Officer cannot do Revised Tax Assessment in any Decision
of amendment or reduction of tax from Revenue tribunal or any other rightful
court for any assessment. But if such court gives decision to re-assess the
assessment, then it shall not be considered as creating Obstruction in tax
assessment.
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Tax Collection:
Section 21 (1em): Publication of Tax payer’s name in newspaper, Television or
website in-case of non-payment of tax within stipulated time.
VAT Refund:
Section 25(1(s1)) VAT Refund in case of goods & services purchased by United
Nations , Member Organizations of UN or Diplomatic Agencies for their
objectives.
Section 25(u1): Refund & Set Off of VAT for Contractors/Suppliers

1. Amount deposited by Government Bodies or wholly/partially owned
government organizations on behalf of Contractors/suppliers against goods
or services provided by the Contractors/suppliers as per Public Procurement
while making payment to them, can be set off by the contractors/suppliers
from the payable tax amount.
2. Excess amount deposited even after set off as per subsection 1 for continuous
4 months can be claimed for refund by giving an application to the concerned
tax office.
3. Amount claimed for refund as per subsection 2 shall be refunded within 60
days.
4. Amount claimed for refund as per subsection 2 shall not be allowed to be set
off in the next month.
Section 25(u2): VAT Refund on Purchases of Medicine Industry

1. Refund on purchases of raw materials, auxiliary materials and packing
materials from local manufactures can be claimed on quarterly basis.
2. Amount claimed for refund as per subsection 1 shall be refunded within 60
days.
Penalty: Section 29
 Section 29 (1(51) – Removed. Fine of Rs. 1000.00 each time for Violation of Section
16 (3s)
Public Circular: Section 32v

 Section 32v (2) – Any circular issued as per section 32v (1) can be issued by
publishing in national level newspaper or other electronic medium.
Deposit: Section 33 (Old section replaced with new)
 Section 33 (1) – For cases to be filed as per this law at Revenue Tribunal, deposit
 Section 33 (2) – For calculation of deposit amount (Cash or Bank Guarantee) as
per Section 33(1), 25% amount as submitted during filing case at Administrative
Review shall also be included.
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Special Provisions (Continued)

 10% Vat Refund shall be transferred to the persons’ bank a/c on making
payments electronically through process as specified by department.
 VAT payment made above Rs. 10 Lakhs should be done compulsorily through
Cheque, draft or electronically.
 A registered person may submit application of refund of VAT amount remaining
excess after adjusting for continuous period of 4 months (Previously 6 months).
 Invoice raised without delivering goods and rendering services shall attract
penalty of 50% of the invoice value or imprisonment upto 6 months or both.
New Removal from Exemption:

 HS Code: 0305.50.00 - Others
List of VAT Exemption Goods/Services – Few Instances:

 Rent of Transportation Vehicle, Transportation Service (Other than for Import) or
Cargo Service. Cargo Service for the purpose of Export
 Financial Services, Life Insurance, Reinsurance Service, Health & Accidental
Insurance, Agriculture Insurance, Micro Insurance, Clearing House Service,
Capital Market Business, Share Market Business, Merchant Banking, Commodity
Future Market, Share & Commodity Brokerage Service
 Garbage Processing Machine (HS Code: 8479.89.30)
 Garbage Compactor (HS Code: 8479.89.40)
 Medicine Manufacturing Machine (HS Code: 8479.89.50)
 Solar Charge Controller, Inverter having more than 80% of Capacity (HS Code:
8504.40.90)
 Transistor, Photo sensitive semi-conductor devices (HS Code: 8504.40.00)
 Storage Service for Agriculture Products provided by Cold Storage & Silo (HS
Code: 8479.89.60) and Service of Storage of Agriculture Products by such silo.
 Machinery Equipment required for Bee-Keeping Viz. Metal Barrel, Bee Brush,
Gear Pump, Wheel Plate etc. (under H.S. Code 84.36) & Honey Filter & Juice
Filter Machine (under H.S. Code 84.33).
 Machinery Equipment & Chemical for Blood Transfusion to be imported by
Nepal Red Cross Society.
 Machinery Equipment used for the purpose of Research & Development in
Pharmaceutical Industries & Hospital (under H.S. Code 90.18 & 90.27) upon
recommendation of Department of Drug Administration.
 Spare parts imported by Jute industries (on the recommendation of the
Department of Industries).
 Jute Batching Oil (H.S. Code 27.10.19.13) & Jute Products (H.S. Code 53.06, 53.07
& 53.10).
 Health Services
 Education Services including Canteen, Hostel Services and transportation
services provided by the educational institutes for self-use.
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 Plastic Granules used by Saline manufacturing industries for manufacturing

Saline Packing item.
 Money transfer, Money Exchange, Swift Service, Hire Purchase Transaction,
Deposit or Loan Management Service.
 E-Rickshaw manufacturers importing items related to e-rickshaw under head
87.08
 Electric Wheelchair 8713.90.10
 Community education centers importing a bus having capacity of 30 seats or
more for commutation of students. But the bus cannot be sold or handed over
upto 10 years
 Raw Material imported by manufacturers after recommendation of Ayurvedic or
Alternative Medical Department
 Service Charges on E-Library
 Service of giving “Certificate of Origin”
 Trekking & Tour Package Related Services
VAT Facility to Hydropower Projects
VAT Exemption
 Machinery, Tools, Equipment and Spare parts, Penstock Pipe or Iron Plate
used to make Penstock Pipe (not manufactured in Nepal) to be imported by
Hydropower Projects, on recommendation of Alternative Energy Promotion
Centre / Electricity Development Department.
Zero Rate of VAT

 Zero Rate Facility shall be provided to Machinery, Tools, Equipment and
Spare parts, Penstock Pipe or Iron Plate used to make Penstock Pipe
manufactured in Nepal, to be directly sold to Hydropower Projects, on
recommendation of Alternative Energy Promotion Centre / Electricity
Development Department.
Compulsory Payment of VAT on Construction for Commercial Purposes

exceeding Rs. 5 Million:
 Buildings, Apartments or Shopping Complexes or such structures, as
prescribed by the IRD for Commercial Purposes exceeding the value of Rs. 5
million, if constructed from by Non-VAT Registered Person; VAT on the
same has to be paid. If such VAT is not paid, such VAT shall be assessed and
collected from the owner of such property. Such VAT Credit cannot be
claimed back.
 Note: Commercial Purpose means Buildings, Apartments or Shopping
Complexes or such structures, as prescribed by the IRD constructed for sale
purpose or used for income earning activities, classified under Current Assets
or Fixed Assets.
VAT Collection (Reverse VAT Charge) on Services Acquired from Person Outside
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Nepal Not Registered in Nepal:

 While acquiring services from person outside Nepal not registered in Nepal,
VAT on such services shall be determined and collected by the Service Recipient
(whether registered in VAT or not). Such VAT is payable at the time of receipt of
service or while making payment, whichever is earlier.
VAT Refund Facility for Manufacturers (not having Bonded Warehouse or Pass Book
facility):
 Manufacturers (not having Bonded Warehouse or Pass Book facility) shall
continue to get refund of VAT at Flat Rate at custom point against export of
finished goods; 10% Value Addition in Raw Materials continues to be required
on such exports.
Time Bar for Tax Assessment:

 Tax Assessment may be done within 4 Years from the date of submission of VAT
Return; otherwise, the returned submitted shall be deemed as assessed.
 However, in case of tax evasion be means of false records, invoices or documents
or other fraud, the department may order for Re-assessment at any point of time;
no time bar shall be applicable in the case.
Temporary VAT Registration:

 Temporary VAT Registration needs to be obtained by the organizer of
Temporary Exhibition, fare etc. and traders (not registered under VAT)
transacting in taxable goods and services in such exhibitions. Within 7 days from
the date of end of such exhibition, return needs to be filed tax needs to be paid.
 Section 10 v : Temporary VAT Registration of Joint Ventures

 Temporary registration facility is available for two or more persons agreeing
to work on a certain project as a Joint Venture for certain period of time. Such
registration can be done by applying on any tax office which falls on either of
the person’s jurisdiction.
 After receipt of application as per sub section (1), tax officer has to provide
registration certificate as per prescribed format.
 After completion of the period as mentioned in Sub section (1), the joint
venture has to get de-registered.
 Person involved in such joint venture may be held singly or jointly
responsible for the purpose of settlement of tax dues and other liabilities under
this act.
Sale to Industries Operating in SEZ:

 Sale of Raw Materials and Finished Goods to industries operating in SEZ,
established under prevalent law, shall be taxed at Zero (0) %.
Sundries:
31 | P a g e
 Rate of Interest continues to be 15% for delay in payment of VAT.

 The practice of Advance Ruling is available for clarification of any VAT matters.
 A person who knowingly or recklessly aids or abets another person to commit an
offence or counsels or induces another person to commit such an offence shall be
liable for a penalty equal to 50% of the underpayment of tax.
Provisions in case of Export of Goods:

 Industries having export over 40% of total sales during last 12 months may
import raw material to the extent of manufacture of export quantity against Bank
Guarantee of Vat amount. The value addition on such export should be 10%. (Sec
8 s)
 Any person exporting more than 40% of total sales in any month shall be eligible
for VAT refund by submitting application and other documents with Annexure –
10
VAT Refund to Diplomatic Mission / Diplomats:

 Vat Refund to person and entity enjoying diplomatic facilities can immediately
be provided if they purchase goods and services from listed firms for VAT paid
above Rs. 10,000.00 (PY: 5,000) per invoice.
VAT Refund to Foreign Tourist on Purchase:

 VAT Refund to foreign Tourist returning through air-way against taxable
purchase is Rs. 25,000.00. 3% shall be deducted against Service Charges.
Refund of VAT in case of Re-Export: Sec 25(u)

 Wherein case VAT has been paid on purchase and the same goods has been re-
exported and payment has been received in Convertible foreign currency in
advance, VAT paid while purchase of such re-exported goods shall be refunded.
 But, in case if VAT rebate facility has been already taken as per schedule 1, VAT
refund on such goods cannot be claimed.
Managerial Level Employees of Tax Payer to be Made Accountable:

 For Non Compliance of Vat Act of an entity, Managerial Level Employees of
such entity shall be held responsible.
 In case of Non Payment of VAT on due, such manager who are in employment at
that time or were in employment before six months, shall be made accountable
jointly or severally to pay such VAT.
 However, if such noncompliance is done without such employee’s consent or
such employee has exercised rational act in such situation; he shall not be made
accountable.
 If such VAT are paid by such employee; he can recover the amount from his
employer or take under his custody any assets of his employee to the extent of
such paid amount.
32 | P a g e
Special Provision relating to Computerized Billing

 A Fine of Rs. 5 Lakhs shall be levied if Tax Payer is found using software having
elimination & modification option.
 A fine of Rs 5 Lakhs shall be levied to software developers if the required
provisions u/s 14(s) are not followed.
 Through notice, the department may instruct any taxpayer for computerized
billing by associating in Central Billing Monitoring System (CBSM). Developers
and distributors and users of Billing Software are required to be abided by the
procedures of the department. Failure to comply with the procedures shall
attract penalty of Rs. 5 Lakhs.
 Deposit against appeal for Administrative Review shall be 1/4th of disputed
amount
Important VAT Rules, 2053

 Any registered person is required to take consultancy services or construction
contract above Rs. 5 Lakhs from a VAT registered person. (Rule 6 s (2))
 Govt. Entities or Wholly/Partially Govt. owned entities shall deduct 30% (earlier
50%) of VAT amount and deposit the same in IRO in favour of the supplier (rule
6u)
 VAT credit shall not be allowed in purchase of Diesel & LPG (rule 41 (1) u )
 No registered person can appoint Tax Assistant
Remarks:
For Exhaustive List of VAT Exempted Goods and Zero Rated Goods, please refer to
Revised Schedule 1 & Schedule 2 of Vat Act, 2052 given in Finance Bill, 2077
E. EXCISE DUTY
Levy of Excise Duty:

 For goods under Physical Control System: At the time of removal of goods for
sale.
 For goods/services under Self Removal System: At the time of issue of invoice.
 For goods imported: At the time of import.
 For service imported: As prescribed by the IRD.
Time of Payment of Excise Duty:

 For goods under Physical Control System: At the time of removal of goods for
sale.
 For goods/services under Self Removal System: within 25 Days from the month-
end in which the invoices have been issued.
 For goods imported: At the time of import.
 For service imported: As prescribed by the IRD.
33 | P a g e
Onus of Payment of Excise Duty:

 For goods manufactured in Nepal: Manufacturer.
 For goods imported: Person mentioned on Air-way Bill, Bill of Lading, invoice or
person whose name is mentioned on the application to clear the goods.
 For Auction of Excisable Goods: Person who accepts the Auction.
 For Resale or Use of Goods (other than Cigarette Liquor sold by Duty Free Shop):
Person who resells or uses the goods.
 For goods/services converted from Non Excisable to Excisable Condition: Person
who owns it.
 For other cases: As prescribed by the IRD.
Time of Submission of Return:

 Time for submission of Monthly Excise Return continues to be 25th of next month.
Exemption of Excise Duty:

 Excisable goods/services exported out of Nepal or sold through Bonded
Warehouse or Duty Free Shop continues to be exempted from excise duty (except
liquor & cigarettes).
 Provision for Cash Deposit / Bank Guarantee before export or sale through
Bonded warehouse or Duty Free Shop continues to be abolished.
Duty Free Sale of Cigarettes & Liquor:
Duty free sale of cigarettes and liquor continues to be prohibited. However,

exemption of excise continues for purchase of cigarettes and liquor from the
authorized bonded warehouses by the persons/entities having diplomatic and
exemption status
Maintenance of Records:
 Purchase, Production, Removal, Sales and Stock Register, duly attested by the
Excise Officer needs to be maintained.
 Excise Records need to be safely kept for 6 Years.
Time Bar for Excise Assessment:

 Tax Assessment shall be done within 4 Years from the date of submission of
Excise Return; otherwise, the returned submitted shall be deemed as assessed.
 However, in case of evasion of excise by means of false return or other fraud, the
department may order for Re-assessment at any point of time; no time bar shall
be applicable in the case.
Bar on Gift & Cash Discount:

 Bar continues to be imposed to conduct any Gift Program by Liquor, Beer &
34 | P a g e
Tobacco related products Industries or their sellers.

 No discounts shall be availed by Liquor, Beer & Cigarette Industries to sellers
who are not registered under VAT.
Excise Exemption to Industries using Domestic Scraps:

 Industries, manufacturing goods by using 90% or more than 90% domestic
scraps, continue to be exempted from Excise Duty.
Penalties
 Section 16 (4)(w1): 100% penalty of Excise Amount if Excise Sticker is found less
and if excise sticker is found to be excess then, difference qty shall be treated as
income plus Rs. 1 Lakh fine.
Changes in Excise:-
Sub-
heading Old New Description of goods
Pepper of the genus Piper; dried or crushed or

ground fruits of the genus Capsicum or of the
09.04 genus Pimenta.
Pepper:
Neither crushed not ground:
0904.11.10 15 15 Pipala
0904.11.20 15 15 White Pepper
0904.11.30 15 15 Black Pepper
0904.11.40 15 15 Sichuan Pepper (Timur)
0904.11.90 15 15 Other
Crushed or ground
0904.12.10 15 15 Pepper
0904.12.90 15 15 Other
09.06 Cinnamon and cinnamon-tree flowers.
Neither crushed nor ground:
0906.11.00 10 10 Cinnamon (Cunnamomum zeylanicum Blume)
0906.19.00 10 10 Other
0906.20.00 10 10 -Crushed or ground
Ginger, saffron, turmeric (curcuma), thyme, bay
09.10 leaves, curry and other spices.
Ginger:
Neither crushed nor ground:
0910.11.10 5 5 Fresh
0910.11.90 5 5 Other
0910.12.00 5 5 Crushed or ground
0910.20.00 5 5 Saffron
Turmeric (curcuma):
0910.30.10 5 5 Fresh
35 | P a g e
0910.30.20 5 5 Dust or Powder

0910.30.90 5 5 Other
Flour, meal and powder of the dried leguminous
vegetables of Heading 07.13, of sago or of roots
or tubers of Heading 07.14 or of the products of
11.06 Chapter 8.
Of the dried leguminous vegetables of Heading
1106.10.00 20 20 07.13
1106.20.00 20 20 Of sago or of roots or tubers of Heading 07.14
1106.30.00 20 20 Of the products of Chapter 8
Other oil seeds and oleaginous fruits, whether or
12.07 not broken.
1207.91.00 0 15 Poppy seeds
1207.99.00 0 15 Other
Vegetable materials of a kind used primarily for
plaiting (for example, bamboos, rattans, reeds,
rushes, osier, raffia, cleaned, bleached or dyed
14.01 cereal straw, and lime bark).
1401.10.00 10 10 Bamboos
1401.20.00 10 10 Rattans
1401.90.00 10 10 Other
Vegetable products not elsewhere specified or
14.04 included.
1404.20.00 5 5 Cotton linters
1404.90.10 0 Rs17/kg Semi-processed Catechu of acacia (liquid Kattha)
1404.90.20 0 Rs 155/ kg Catechu of acacia (Kathas)
1404.90.30 0 5 Leafs to roll beedies
1404.90.40 10 10 Betel Leaf
1404.90.50 10 10 Rudrakshya
1404.90.60 0 10 Skin of Argeli
1404.90.70 10 10 Soapnut
1404.90.80 10 10 Amriso
1404.90.90 10 10 Other
Sausages and similar products, of meat, meat offal
or blood; food preparations based on these
1601.00.00 15 15 products.
Other prepared or preserved meat, meat offal or
16.02 blood.
1602.10.00 10 15 Homogenised preparations
1602.20.00 10 15 Of liver of any animal
Of poultry of Heading 01.05:
1602.31.00 15 15 Of turkeys
1602.32.00 15 15 Of fowls of the species Gallus domesticus
1602.39.00 15 15 Other
1602.41.00 15 15 Hams and cuts thereof
1602.42.00 10 15 Shoulders and cuts thereof
36 | P a g e
1602.49.00 15 15 Other,including mixtures

1602.50.00 10 15 Of bovine animals
Other, including preparations of blood of any
1602.90.00 10 15 animal
Extracts and juices of meat, fish or crustaceans,
1603.00.00 15 15 molluscs or other aquatic invertebrates.
Prepared or preserved fish; caviar and caviar
16.04 substitutes prepared from fish eggs.
Fish, whole or in pieces, but not minced:
1604.11.00 15 15 Salmon
1604.12.00 15 15 Herrings
1604.13.00 15 15 Sardines, sardinella and brisling or sprats
1604.14.00 15 15 Tunas, skipjack and bonito (Sarda spp.)
1604.15.00 15 15 Mackerel
1604.16.00 15 15 Anchovies
1604.17.00 15 15 Eels
1604.18.00 10 15 Shark fins
1604.19.00 15 15 Other
1604.20.00 15 15 Other prepared or preserved fish
1604.32.00 0 15 Caviar Substitutes
Crustaceans, molluscs and other aquatic
16.05 invertebrates, prepared or preserved.
1605.10.00 0 15 Crab
Shrimps and prawns:
1605.21.00 0 15 Not in airtight container
1605.29.00 0 15 Other
1605.30.00 0 15 Lobster
1605.52.00 0 15 Scallops, including queen scallops
1605.53.00 0 15 Mussels
1605.54.00 0 15 Cuttle fish and squid
1605.55.00 0 15 Octopus
1605.59.00 0 15 Other
Other aquatic invertebrates:
1605.69.00 0 15 Other
Cane or beet sugar and chemically pure sucrose,
17.01 in solid form.
Rs
1701.13.10 0 135/qunital Sakhhar (Gud)
Other Cane Sugar
Rs
1701.14.10 0 138/quintal Sakhhar (Gud)
Molasses resulting from the extraction or
17.03 refining of sugar.
Rs 105/
1703.10.00 0 quintal Cane Molasses
37 | P a g e
Rs 105/
1703.90.00 0 quintal Other
Sugar confectionery (including white chocolate),

17.04 not containing cocoa.
1704.10.00 15 15 Chewing gum, whether or not sugarcoated
1704.90.00 15 15 Other
Cocoa powder, not containing added sugar or
180.05 0 5 other sweetening matter.
Chocolate and other food preparations
18.06 containing cocoa.
Cocoa powder, containing added sugar or other
1806.10.00 15 15 sweetening matter
Other preparations in blocks, slabs or bars
weighing more than 2 kg or in liquid, paste,
powder, granular or other bulk form in containers
or immediate packings, of a content exceeding 2
1806.20.00 15 15 kg
Other, in blocks, slabs or bars:
1806.31.00 15 15 Filled
1806.32.00 15 15 Not filled
Preparations of Heading 19.04 containing more
than 6% by weight of cocoa calculated on totally
defatted basis or completely coated with chocolate
on the outside even if it does not contain 6% by
1806.90.10 15 15 weight of cocoa.
1806.90.90 15 15 Other
Pasta, whether or not cooked or stuffed (with
meat or other Substances) or otherwise prepared,
such as spaghetti, macaroni, noodles, lasagne,
gnocchi, ravioli, cannelloni; couscous, whether or
19.02 not prepared.
Uncooked pasta,not stuffed or otherwise
prepared:
1902.11.00 0 Rs 20/ kg Containing Eggs
1902.19.00 0 Rs 20/ kg Others
Stuffed pasta, whether or not cooked or otherwise
1902.20.00 0 Rs 20/ kg prepared
1902.30.00 0 Rs 20/kg Other Pasta
1902.40.00 0 Rs 20/kg Couscous
Bread, pastry, cakes, biscuits and other bakers'
wares, whether or not containing cocoa;
communion wafers, empty cachets of a kind
suitable for pharmaceutical use, sealing wafers,
19.05 rice paper and similar products
1905.10.00 15 15 Crispbread
1905.20.00 15 15 Gingerbread and the like
38 | P a g e
Sweet biscuits; waffles and wafers:

1905.31.00 15 15 Sweet biscuits
1905.32.00 15 15 Waffles and wafers
1905.40.00 15 15 Rusks, toasted bread and similar toasted products
Other:
1905.90.10 15 15 Pizza
1905.90.20 0 Rs 20/kg Kurkure, Kurmure, Lays, Cheeseball
1905.90.30 0 5 Papad
1905.90.50 15 15 Biscuits not elsewhere specified
1905.90.60 15 15 Cake, Cookies and Pastry
1905.90.70 15 15 Pauroti (Bread)
Other crispy savoury food products
1905.90.81 0 Rs 20/ kg Not fried
1905.90.89 0 Rs 20 /kg Other
1905.90.90 0 15 Other
Vegetables, fruit, nuts and other edible parts of
plants, prepared or preserved by vinegar or
20.01 acetic acid.
2001.10.00 15 15 Cucumbers and gherkins
2001.90.00 15 15 Other
Tomatoes prepared or preserved otherwise than
20.02 by vinegar or acetic acid.
2002.10.00 15 15 Tomatoes, whole or in pieces
2002.90.00 15 15 Other
Mushrooms and truffles, prepared or preserved
20.03 otherwise than by vinegar or acetic acid.
2003.10.00 0 15 Mushrooms of the genus Agaricus k
2003.90.00 0 15 Other
Other vegetables prepared or preserved
otherwise than by vinegar or acetic acid, frozen,
20.04 other than products of Heading 20.06.
2004.10.10 0 15 French Fries
2004.10.90 0 15 Other
2004.90.00 0 15 Other vegetables and mixtures of vegetables
Other vegetables prepared or preserved otherwise
than by vinegar or acetic acid, not frozen, other than
20.05 products of Heading 20.06.
2005.10.00 0 15 Homogenised vegetables
Potatoes
2005.20.10 0 Rs. 18/kg Potato Chips
2005.20.90 0 15 Other
2005.40.00 0 15 Peas (Pisum sativum)
Beans (Vigna spp, Phaseolus spp.):
2005.51.00 0 15 Beans, shelled
2005.59.00 0 15 Other
39 | P a g e
2005.60.00 0 15 Asparagus
2005.70.00 0 15 Olives
2005.80.00 0 15 Sweet corn (Zea mays var. saccharata)
Other vegetables and mixtures of vegetables
2005.91.00 0 15 Bamboo shoots
2005.99.00 0 15 Other
Vegetables,fruit, nuts, fruit-peel and other parts of
plants, preserved by sugar (drained, glace or
20.06 0 15 crystallised)
Jams, fruit jellies, marmalades, fruit or nut puree and
fruit or nut pastes, obtained by cooking whether or
not containing added sugar or other sweetening
20.07 matter.
2007.10.00 0 15 Homogenised preparations
2007.91.00 0 15 Citrus fruit
2077.99.00 0 15 Other
Fruit, nuts and other edible parts of plants, otherwise
prepared or preserved, whether or not containing
added sugar or other sweetening matter or spirit, not
20.08 elsewhere specified or included.
Nuts, ground-nuts and other seeds, whether or not
mixed together:
2008.11.00 0 15 Ground Nuts
Other, including mixtures:
2008.19.10 0 15 Grams, roasted or roasted and salted
2008.19.20 0 15 Cashew, roasted or roasted and salted
2008.19.30 0 15 Pistachio, roasted or roasted and salted
2008.19.40 0 15 Almond, roasted or roasted and salted
2008.19.90 0 15 Other
2008.20.00 0 15 Pineapples
2008.30.00 0 15 Citrus fruit
2008.40.00 0 15 Pears
2008.50.00 0 15 Apricots
2008.60.00 0 15 Cherries
2008.70.00 0 15 Peaches, including nectarines
2008.80.00 0 15 Strawberries
Other, including mixtures other than those of Sub-
Heading 2008.19:
2008.91.00 0 15 Palm Hearts
Cranberries (Vaccinium macrocarpon, Vaccinium
2008.93.00 0 15 oxycoccos, Vaccinium vitis-idaea)
2008.97.00 0 15 Mixtures
Others
2008.99.90 0 15 Others
20.09 Fruit juices (including grape must) and vegetable
40 | P a g e
juices, unfermented and not containing added spirit,

whether or not containing added sugar or other
sweetening matter.
Orange juice:
2009.11.00 0 Rs 13/liter Frozen
2009.12.00 0 Rs 13/liter Not frozen, of a Brix value not exceeding 2
2009.19.00 0 Rs 13/liter Other
Grapefruit (including pomelo) juice:
2009.21.00 0 Rs 13/liter Of a Brix value not exceeding 20
Juice of any other single citrus fruit
Pineapple Juice
2009.50.00 0 Rs 13/liter Tomato Juice
Grape juice (including grape must)
Apple Juice
Juice of any other single fruit or vegetable
Cranberry (Vaccinium macrocarpon, Vaccinium
2009.81.00 0 Rs 13/liter oxycoccos, Vaccinium vitis-idaea) juice
Other
2009.89.10 0 Rs 13/liter Mango Juice
2009.90.00 0 Rs 13/liter Mixture of Juices
Extracts, essences and concentrates, of coffee, tea or
mate and preparations with a basis of these products
or with a basis of coffee, tea or mate; roasted chicory
and other roasted coffee Substitutes, and extracts,
21.01 essences and concentrates thereof.
Extracts, essences and concentrates of coffee, and
preparations with a basis of these extracts, essences or
concentrates or with a basis of coffee:
2101.11.00 0 10 Extracts, essences and concentrates
Preparations with a basis of extracts, essences or
2101.12.00 0 10 concentrates or with a basis of coffee
Extracts, essences and concentrates, of tea or mate,
and preparations with a basis of these extracts,
2101.20.00 0 10 essences or concentrates or with a basis of tea or mate
2101.30.00 0 10 Roasted chicory and other roasted coffee substitutes,
41 | P a g e
and extracts, essences and concentrates thereof

Sauces and preparations therefor, mixed
condiments and mixed seasonings; mustard flour
21.03 and meal and prepared mustard.
2103.30.00 10 10 Mustard flour and meal and prepared mustard
Ice cream and other edible ice, whether or not
2105.00.00 20 20 containing cocoa.
Food preparations not elsewhere specified or
21.06 included.
Other:
2106.90.10 0 5 Dalmoth, Namkeen, Bhujiya and Chamena (titbits)
2106.90.20 821/kgs 850/kgs Pan Masala without Tobacco
2106.90.60 350/kgs 365/kgs Scented areca nuts without Tobacco
Waters, including mineral waters and aerated
waters, containing added sugar or other
sweetening matter or flavoured, and other
nonalcoholic beverages, not including fruit or
22.02 vegetable juices of Heading 20.09
2202.91.00 30/Ltr 35/Ltr Non-alcoholic beer
2202.99.10 50/Ltr 50/Ltr Energy Drinks
2202.99.20 0 25/ Ltr Pan Masala without tobacco
2202.90.30 0 25/ Ltr Zintang
2202.99.90 25/Ltr 25/Ltr Other
2203.00.0 0 228/Ltr 235/Ltr Beer made from malt.
Wine of fresh grapes, including fortified wines; grape
22.04 must other than that of Heading 20.09.
Sparkling wine:
Of an alcoholic strength by volume not exceeding 12%
2204.10.10 0 444/ Ltr vol.
Of an alcoholic strength by volume exceeding 12% vol.
2204.10.20 0 444/ Ltr but not exceeding 17% Vol
2204.10.30 0 516/ Ltr Of an alcoholic strength by volume exceeding 17% vol.
Other wine; grape must with fermentation prevented
or arrested by the addition of alcohol:
In containers holding 2 ltr. or less:
2204.21.10 0 444/ Ltr vol.
2204.21.20 0 444/ Ltr but not exceeding 17% vol.
In containers holding more than 2 ltr. but not more
than 10 ltr.:
2204.22.10 0 444/ Ltr vol.
2204.22.20 0 444/ Ltr but not exceeding 17% vol
42 | P a g e

Other
2204.29.10 0 444/ Ltr vol.
Other Grape Must
2204.30.10 0 444/ Ltr vol.
Undenatured ethyl alcohol of an alcoholic

strength by volume of 80% vol. or higher; ethyl
alcohol and other spirits, denatured, of any
22.07 strength.
2207.10.10 70/Ltr 80/Ltr Undenatured ethyl alcohol
Rectified spirit used as a raw material for liquor of
an alcoholic strength by volume of 80% vol. or
2207.10.20 70/Ltr 80/Ltr higher
2207.10.30 76/Ltr 86/Ltr E.N.A. (Extra Neutral Alcohol)
Anhydrous Ethanol (of an alcoholic strength by
2207.10.40 9/Ltr 12/Ltr volume exceeding 99% vol.)
2207.10.90 76/Ltr 86/Ltr Other
Ethyl alcohol and other spirits, denatured, of any
strength :
Denatured spirit of an alcoholic strength by
2207.20.10 20/Ltr 30/Ltr volume from 80% to 99% alcohol)
2207.20.90 76/Ltr 86/Ltr Other
Undenatured ethyl alcohol of an alcoholic
strength by volume of less than 80% vol; spirits,
22.08 liqueurs and other spirituous beverages.
Spirits obtained by distilling grape wine or grape
marc:
All kinds of alcoholic fluids including spirits used
2208.20.10 198/Ltr 228/Ltr as raw material of wine or brandy
2208.20.91 1592/Ltr & 1750/Ltr & Prepared spirits (brandy) of 15 U.P. strength
43 | P a g e
1872/LP
Ltr 2059/LP Ltr (alcoholic strength by volume of 48.5% vol.)
1188/Ltr &
1584/LP 1306/Ltr & Prepared spirits (brandy) of 25 U.P. strength
2208.20.92 Ltr 1741/LP Ltr (alcoholic strength by volume of 42.8% vol)
1105/Ltr &
1578/LP 1215/Ltr & Prepared spirits (brandy) of 30 U.P. strength
1592/Ltr &
1872/LP 1750/Ltr &
2208.20.99 Ltr 2059/LP Ltr Other
Whiskies:
Alcoholic fluids including spirits used as raw
2208.30.10 198/Ltr 228/Ltr materials of whisky
1592/Ltr &
1872/LP 1750/Ltr & Prepared whisky of 15U.P. strength (alcoholic
2208.30.91 Ltr 2059/LP Ltr strength by volume of 48.5% vol)
1188/Ltr &
1584/LP 1306/Ltr & Prepared whisky of 25 U.P. strength (alcoholic
1105/Ltr &
1578/LP 1215/Ltr & Prepared whisky of 30 U.P. strength (alcoholic
2208.30.93 Ltr 1735/LP Ltr strength by volume of 39.94 vol
1592/Ltr &
1872/LP 1750/Ltr &
Rum and other spirits obtained by distilling
fermented sugar-cane products:
materials of Rum and other spirits obtained by
2208.40.10 198/Ltr 228/Ltr distilling fermented sugar-cane products
Other:
1592/Ltr &
1872/LP 1750/Ltr & Prepared rum of 15U.P. strength (alcoholic
1188/Ltr &
1584/LP 1306/Ltr & Prepared rum of 25 U.P. strength (alcoholic
1105/Ltr &
1578/LP 1215/Ltr & Prepared rum of 30 U.P. strength (alcoholic
2208.40.93 Ltr 1735/LP Ltr strength by volume of 39.94 vol)
1592/Ltr &
1872/LP 1750/Ltr &
2208.50.10 198/Ltr 228/Ltr materials of Gin and Geneva
44 | P a g e
Other:
1592/Ltr &
1872/LP 1750/Ltr & Prepared gin and geneva of 15U.P. strength
1188/Ltr &
1584/LP 1306/Ltr & Prepared gin and geneva of 25 U.P. strength
1105/Ltr &
1578/LP 1215/Ltr & Prepared gin and geneva of 30 U.P. strength
2208.50.93 Ltr 1735/LP Ltr (alcoholic strength by volume of 39.94 vol)
1592/Ltr &
1872/LP 1750/Ltr &
Vodka :
2208.60.10 198/Ltr 228/Ltr materials of Vodka
Other:
1592/Ltr &
1872/LP 1750/Ltr & Prepared vodka of 15U.P. strength (alcoholic
1188/Ltr &
1584/LP 1306/Ltr & Prepared vodka of 25 U.P. strength (alcoholic
1105/Ltr &
1578/LP 1215/Ltr & Prepared vodka of 30 U.P. strength (alcoholic
1592/Ltr &
1872/LP 1750/Ltr &
2208.70.10 198/Ltr 228/Ltr materials of Liqueurs and cordials
Other:
1592/Ltr &
1872/LP 1750/Ltr & Prepared liqueurs and cordials of 15U.P. strength
1188/Ltr &
1584/LP 1306/Ltr & Prepared liqueurs and cordials of 25 U.P. strength
1105/Ltr &
1578/LP 1215/Ltr & Prepared liqueurs and cordials of 30 U.P. strength
2208.70.93 Ltr 1735/LP Ltr (alcoholic strength by volume of 39.94 vol)
1592/Ltr &
1872/LP 1750/Ltr &
Other:
2208.90.10 198/Ltr 228/Ltr materials of other liquor
45 | P a g e
1592/Ltr &
1872/LP 1750/Ltr & Prepared liquor of 15U.P. strength (alcoholic
1188/Ltr &
1584/LP 1306/Ltr & Prepared liquor of 25 U.P. strength (alcoholic
1105/Ltr &
1578/LP 1215/Ltr & Prepared liquor of 30 U.P. strength (alcoholic
555/Ltr & 610/Ltr & Prepared liquor of 40 U.P. strength (alcoholic
2208.90.94 924/LP Ltr 1017/LP Ltr strength by volume of 34.23% vol)
450/Ltr & 472/Ltr & Prepared liquor of 50 U.P. strength (alcoholic
2208.90.95 900/LP Ltr 944/LP Ltr strength by volume of 28.53% vol)
1592/Ltr &
1872/LP 1750/Ltr &
24.01 Unmanufactured tobacco; tobacco refuse.
2401.10.00 118/Kg 130/Kg Tobacco, not stemmed/stripped
2401.20.00 118/Kg 130/Kg Tobacco, partly or wholly stemmed/stripped
2401.30.00 118/Kg 130/Kg Tobacco refuse
Cigars, cheroots, cigarillos and cigarettes, of
24.02 tobacco or of tobacco substitutes.
2402.10.00 21/Khilli 30/Khilli Cigars, cheroots and cigarillos, containing tobacco
Cigarettes containing tobacco:
2402.20.10 618/M 710/M Without filter
With Filter:
2402.20.21 1418/M 1635/M of length not exceeding 70m.m.
Of length exceeding 70m.m. but not exceeding
2402.20.22 1843/M 2225/M 75m.m.
Of length exceeding 75 m.m. but not exceeding 85
2402.20.23 2400/M 2880/M m.m.
2402.20.24 3393/M 3965/M Of length exceeding 85 m.m.
2402.90.20 21/Khilli 30/Khilli All kinds of cigar
2402.90.90 21/Khilli 30/Khilli Other
Other manufactured tobacco and manufactured
tobacco substitutes; “homogenised” or
“reconstituted” tobacco; tobacco extracts and
24.03 essences
Smoking tobacco, whether or not containing
tobacco substitutes in any proportion :
Water pipe tobacco specified in Subheading Note
2403.11.00 1668/Kg 2000/Kg 1 to this Chapter
Other:
2403.19.10 1668/Kg 2000/Kg Pipe Tobacco
Other:
46 | P a g e
2403.91.00 418/Kg 460/Kg “Homogenised ” or “ reconstituted ” tobacco

Other:
Jarda, Khaini, Snuff, Ghutka and similar
2403.99.10 812/Kg 821/Kg preparations containing chewing tobacco
Packed chewing tobacco, to be mixed in lime, put
2403.99.20 418/Kg 460/Kg up for retail sale
2403.99.30 418/Kg 460/Kg Cut tobacco, dust tobacco not for retail sale
Other:
2403.99.91 1200/Kg 1400/Kg Hukkah Flavour
2403.99.99 418/Kg 460/Kg Other
Non-Combustible tobacco, refined tobacco and
24.04 nicotinable products.
2404.11.00 0 460/Kg With Tobacco or Refined Tobacco
2404.12.00 0 460/Kg Other Necotine Product
2404.19.00 0 460/Kg Other
2404.91.00 0 80 For Oral Used
2404.92.00 0 80 To use through(Transdermal) the blister
2404.99.00 0 80 Other
33.04 5 15 Beauty or make-up preparations and preparations

for the care of the skin (other than medicaments),
including sunscreen or sun tan preparations;
manicure or pedicur preparations.
33.05 5/10 15 Preparations for use on the hair.
Shampoos
Preparations for permanent waving or
straightening
Hair lacquers & others
33.06 15 Preparations for oral or dental hygiene,
including denture fixative pastes and powders;
yarn used to clean between the teeth (dental
floss), in individual retail packages
33.07 Pre-shave, shaving or after-shave reparations,
personal deodorants, bath preparations,
depilatories and other perfumery, cosmetic or
toilet preparations, not elsewhere specified or
included; prepared room deodorisers, whether or
not perfumed or having disinfectant properties
3307.10.00 5 15 -Pre-save, saving or after-save preparations
3307.20.00 10 15 -Personal deodorants and antiperspirant
3307.30.00 5 15 -Perfumed bath salts and other bath preparations
3307.41.00 0 15 preparations for perfuming or deodorizing rooms,
including odoriferous preparations used during
religious rites:
Agarbatti and Other odoriferous preparations
which operate by burning
3307.49.00 10 15 preparations for perfuming or deodorizing rooms,
47 | P a g e
including odoriferous preparations used during

religious rites:
Others
3925.90.10 0 5 Builders' wares of plastics, not elsewhere specified
or included.
---Roofing sheet and Roofing Tile
3926.20.49 0 5 Other articles of plastics and articles of other
materials of Headings 39.01 to 39.14
Face shield Other then Used for medical or
surgical purpose
3918.10.10 5 Floor coverings of plastics, whether or not self-
adhesive, in rolls or in the form of tiles; wall or
ceiling coverings of plastics, as defined in Note 9
to this Chapter. -Of polymers of vinyl chloride:
---Floor coverings, in rolls or in the form
of tiles
to this Chapter. -Of polymers of vinyl chloride:
---Others
to this Chapter. --Of other plastics::
---Floor coverings, in rolls or in the form
of tiles
to this Chapter. --Of other plastics::
---Others
3925.90.10 0 5 Builders' wares of plastics, not elsewhere specified

or included.
---Roofing sheet and Roofing Tile
3926.20.49 0 5 Other articles of plastics and articles of other
materials of Headings 39.01 to 39.14
Face shield Other then Used for medical or
surgical purpose
44.01 Fuel wood, in logs, in billets, in twigs, in faggots
or in similar forms; wood in chips or particles;
sawdust and wood waste and scrap, whether or
not agglomerated in logs, briquettes, pellets or
similar forms.
Fuel wood, in logs, in billets, in twigs, in faggots
or in similar forms:
44.11.00 5 Coniferous
48 | P a g e
44.19.00 5 Non-coniferous
Wood in chips or particles:
44.21.00 5 Coniferous
44.22.00 5 Non-coniferous
-Sawdust and wood waste and scrap,
agglomerated, in logs, briquettes, pellets or similar
forms :
4401.31.00 5 Wood pellets
4401.32.00 5 woods Briquwttes
4401.39.00 5 Other
Scrap
4401.41.00 5 wood dust
4401.49.00 5 others
44.02 Wood charcoal (including shell or nut charcoal),
whether or not agglomerated.
4402.20.00 5 Of bamboo
4402.90.00 5 Other
4403 5 Wood in the rough, whether or not stripped of
bark or sapwood, or roughly squared
Treated with paint, stains, creosote or other
preservatives :
44.04 5 Hoopwood; split poles; piles, pickets and stakes of
wood, pointed but not sawn lengthwise; wooden
sticks, roughly trimmed but not turned, bent or
otherwise worked, suitable for the manufacture of
walking-sticks, umbrellas, tool handles or the like;
chipwood and the like . -Coniferous and non
Coniferous
4405.00.00 0 5 Wood wool; wood flour
4406 0 5 Railway or tramway sleepers (crossties) of wood.
4406.11.00 0 5 Not impregnated:--Coniferous
0 5 Not impregnated:--Non-coniferous
0 5 Other:--Coniferous
0 5 Other:----Coniferous
44.07 0 5 Wood sawn or chipped lengthwise, sliced or
peeled, whether or not planed, sanded or end-
jointed, of a thickness exceeding 6 mm.
44.09 0 5 Wood (including strips and friezes for parquet
flooring, not assembled) continuously shaped
(tongued, grooved, rebated, chamfered, Vjointed,
beaded, moulded, rounded or the like) along any
of its edges ends or faces, whether or not planed,
sanded or end-jointed
44.1 0 5 Particle board, oriented strand board (OSB) and
simiar board (for example, waferboard) of wood
or other ligneous materials, whether or not
49 | P a g e
agglomerated with resins or other organic binding

substances. -Of wood and other.
44.11 0 10 Fibreboard of wood or other ligneous materials,
whether or not bonded with resins or other
organic substances.
44.12 5 10 Plywood, veneered panels and similar laminated
wood - of bamboo and others
4413.00.00 0 10 Densified wood, in blocks, plates, strips, or profile
shapes.
4414.10.00 0 10 Wooden frames for paintings, photographs,
mirrors or similar objects.-only Tropic woods
4414.90.00 0 10 Wooden frames for paintings, photographs,
mirrors or similar objects.-Others
44.18 0 10 Builders' joinery and carpentry of wood, including
cellular wood panels, assembled flooring panels,
shingles and shakes.
4418.11.00 0 10 Windows, French-windows and their frames only
Tropic woods
4418.19.00 0 10 Windows, French-windows and their frames -
other
4418.21.00 0 10 Doors and their frames and thresholds--only
Tropic woods
4418.29.00 0 10 Doors and their frames and thresholds--others
4418.30.00 0 10 Post and Bim other then above
4418.40.00 0 10 Shuttering for concrete constructional work
4418.40.00 0 10 -Shingles and shakes
Assembled flooring panels :
4418.73.00 0 10 --Of bamboo or with at least the top layer (wear
layer) of bamboo
4418.74.00 0 10 --Other, for mosaic floors
4418.75.00 0 10 --Other, multilayer
4418.79.00 0 10 Other
44.19 0 5 Tableware and kitchenware, of wood.
44.2 0 5 Wood marquetry and inlaid wood; caskets and
cases for jewellery or cutlery, and similar articles,
of wood; statuettes and other ornaments, of wood;
wooden articles of furniture not falling in Chapter
94.
44.21 0 5 Other articles of wood
Iron and non-alloy steel in ingots or other

72.06 primary forms (excluding iron of Heading 72.03).
7206.10.00 0 3500/MT Ingots
7206.90.00 0 3500/MT Other
Semi-finished products of iron or non-alloy
72.07 steel.
50 | P a g e
Containing by weight less than 0.25% of carbon:

Of rectangular (including square) cross-Section,
7207.11.00 2500/MT 3500/MT the width measuring less than twice the thickness
Other, of rectangular (other than square) cross-
7207.12.00 2500/MT 3500/MT Section
7207.19.00 2500/MT 3500/MT Other
7207.20.00 2500/MT 3500/MT Containing by weight 0.25% or more of carbon
Flat-rolled products of iron or non-alloy steel, of
a width of 600 mm or more, cold-rolled (cold-
72.09 reduced), not clad, plated or coated.
In coils, not further worked than cold-rolled
(coldreduced):
7209.15.00 2200/MT 4500/MT Of a thickness of 3 mm or more
7209.16.00 2200/MT 4500/MT Of a thickness exceeding 1 mm but less than 3 mm
Of a thickness of 0.5 mm or more but not
7209.17.00 2200/MT 4500/MT exceeding 1 mm
7209.18.00 2200/MT 4500/MT Of a thickness of less than 0.5 mm
7209.25.00 2200/MT 4500/MT Of a thickness of 3 mm or more
7209.26.00 2200/MT 4500/MT Of a thickness exceeding 1 mm but less than 3 mm
Of a thickness of 0.5 mm or more but not
7209.27.00 2200/MT 4500/MT exceeding 1 mm
7209.28.00 2200/MT 4500/MT Of a thickness of less than 0.5 mm
7209.90.00 2200/MT 4500/MT Other
a width of 600 mm or more, clad, plated or
72.10 coated.
Plated or coated with tin:
7210.41.00 0 4500/MT Corrugated
a width of less than 600 mm, not clad, plated or
72.11 coated.
Not further worked than hot-rolled,:
Rolled on four faces or in a closed box pass, of a
width exceeding 150 mm and a thickness of not
less than 4 mm, not in coils and without patterns
7211.13.00 2200/MT 7500/MT in relief
7211.14.00 2200/MT 7500/MT Other, of a thickness of 4.75 mm or more
7211.19.00 2200/MT 7500/MT Other
7211.23.00 2200/MT 7500/MT Containing by weight less than 0.25% of carbon
7211.29.00 2200/MT 7500/MT Other
7211.90.00 2200/MT 7500/MT Other
Bars and rods, hot-rolled, in irregularly wound

72.13 coils, of iron or non-alloy steel.
Containing indentations, ribs, grooves or other
7213.10.00 2500/MT 4500/MT deformations produced during the rolling process
51 | P a g e
7213.20.00 2500/MT 4500/MT Other, of free-cutting stee

7213.91.10 2500/MT 4500/MT Not more than 8 mm
7213.91.90 2500/MT 4500/MT Other
7213.99.00 2500/MT 4500/MT Other
72.16 Angles, shapes and Sections of iron or nonallo

U, l or H Section, not further worked than
hotrolled, hot-drawn or extruded, of a height of
7216.10.00 2500/MT 7500/MT less than 80 mm
L or T Sections, not further worked than hotrolled,
hot-drawn or extruded, of a height of less than 80
mm:
7216.21.00 2500/MT 7500/MT L Sections
7216.22.00 2500/MT 7500/MT T Sections
U, l or H Sections, not further worked than
hotrolled, hot-drawn or extruded of a height of 80
mm or more:
7216.31.00 2500/MT 7500/MT U Sections
7216.32.00 2500/MT 7500/MT I Sections
7216.33.00 2500/MT 7500/MT H Sections
L or T Sections, not further worked than hotrolled,
hot-drawn or extruded, of a height of 80 mm or
7216.40.00 2500/MT 7500/MT more
Other angles, shapes and Sections, not further
7216.50.00 2500/MT 7500/MT worked than hot-rolled, hot-drawn or extruded
Angles, shapes, and Sections, not further worked
than cold-formed or cold- finished :
7216.61.00 2500/MT 7500/MT Obtained from flat-rolled products
7216.69.00 2500/MT 7500/MT Other
Cold-formed or cold-finished from flat-rolled
7216.91.00 2500/MT 7500/MT products
7216.99.00 2500/MT 7500/MT Other
72.17 Wire of iron or non-alloy steel.

7217.10.00 2500/MT 10000/MT Not plated or coated, whether or not polished
7217.20.00 2500/MT 10000/MT Plated or coated with zinc
7217.30.00 2500/MT 10000/MT Plated or coated with other base metals
7217.90.00 2500/MT 10000/MT Other
Flat-rolled products of other alloy steel, of a
72.25 width of 600 mm or more.
Of silicon-electrical steel:
7225.11.00 0 4500/MT Grain-oriented
7225.19.00 0 4500/MT Other
7225.30.00 0 4500/MT Other, not further worked than hot-rolled, in coils
Other, not further worked than hot-rolled, not in
7225.40.00 0 4500/MT coils
52 | P a g e
Other, not further worked than cold-rolled

7225.50.00 0 4500/MT (coldreduced)
7225.91.00 0 4500/MT Electrolytically plated or coated with zinc
7225.92.00 0 4500/MT Otherwise plated or coated with zinc
7225.99.00 0 4500/MT Other
Bars and rods, hot-rolled, in irregularly wound
72.27 coils, of other alloy steel.
7227.10.00 0 4500/MT Of high speed steel
7227.20.00 0 4500/MT Of silico-manganese steel
7227.90.00 0 4500/MT Other
Stranded wire, ropes, cables, plaited bands,
slings and the like, of iron or steel, not
73.12 electrically insulated.
7312.10.00 2500/MT 10000/MT Stranded wire, ropes and cables
7312.90.00 2500/MT 10000/MT Other
Cloth (including endless bands), grill, netting
and fencing, of iron or steel wire; expanded
73.14 metal of iron or steel.
Woven cloth:
7314.12.00 2500/MT 10000/MT Endless bands for machinery, of stainless steel
7314.14.00 2500/MT 10000/MT Other woven cloth, of stainless steel
7314.19.00 2500/MT 10000/MT Other
Grill, netting and fencing, welded at the
interSection, of wire with a maximum cross-
Sectional dimension of 3 mm or more and having
7314.20.00 2500/MT 10000/MT a mesh size of 100 cm2 or more
Other grill, netting and fencing, welded at the
inter Section
7314.39.00 2500/MT 10000/MT Other
Other cloth, grill, netting and fencing
7314.42.00 2500/MT 10000/MT Coated with plastics
7314.49.00 2500/MT 10000/MT Other
7314.50.00 2500/MT 10000/MT Expanded metal
Nails, tacks, drawing pins, corrugated nails,
staples (other than those of Heading 83.05) and
similar articles, of iron or steel, whether or not
with heads of other material, but excluding such
7317.00.00 2500/MT 10000/MT articles with heads of copper.
76.04 Aluminium bars, rods and profiles.

Of aluminium, not alloyed:
7604.21.00 0 10 Hollow profiles
7604.29.00 0 10 Other
53 | P a g e
Machines and mechanical appliances having

individual functions, not specified or included
84.79 elsewherein this Chapter.
8479.83.00 0 5 Cold Isosteutic Pressures
Telephone sets, including telephones for cellular

networks or for other wireless networks; other
apparatus for the transmission or reception of
voice, images or other data, including apparatus
for communication in a wired or wireless
network (such as a local or wide area network),
other than transmission or reception apparatus
85.17 of heading 84.43, 85.25, 85.27 or 85.28.
networks or for other wireless networks
8517.13.00 2.5 5 Smart Phones
8517.14.00 2.5 5 networks or for other wireless networks
Motor cars and other motor vehicles principally

designed for the transports of persons (other
than those of Heading 87.02), including station
87.03 wagons and racing cars.
Vehicles specially designed for travelling on snow;
golf cars and similar vehicles:
Of a cylinder capacity exceeding 1500 cc but not
exceeding 3000 cc
exceeding 2000 cc
8703.23.11 70 75 Unassembled Stages
8703.23.19 70 75 Other
exceeding 2500 cc
8703.23.29 80 85 Other
exceeding 3000 cc
8703.23.39 90 95 Other
Cylinder capacity exceeding by 3000 cc
8703.24.90 100 105 Other
exceeding 2500 cc
exceeding 2000 cc
54 | P a g e
8703.32.19 70 75 Other
exceeding 2500 cc
8703.32.29 85 90 Other
Cylinder capacity exceeding by 2500 cc
8703.33.90 100 105 Other
Other vehicles, with both spark-ignition internal
combustion reciprocating piston engine and
electric motor as motors for propulsion, other than
those capable of being charged by plugging to
external source of electric power
8703.40.90 40 45 Other
Other vehicles, with both compression-ignition
internal combustion piston engine (diesel or semi-
diesel) and electric motor as motors for
propulsion, other than those capable of being
charged by plugging to external source of electric
power
8703.50.90 40 45 Other
Other vehicles, with both spark-ignition internal
combustion reciprocating piston engine and
electric motor as motors for propulsion, capable of
being charged by plugging to external source of
electric power
8703.60.90 40 45 Other
Other vehicles, with both compression-ignition
internal combustion piston engine (diesel or semi-
diesel) and electric motor as motors for
propulsion, capable of being charged by plugging
to external source of electric power
Other vehicles, with only electric motor for
propulsion
8703.70.90 40 45 Other
Other vehicles, with only electric motor for
propulsion: ---Three Wheelers:
Car, Jeep, Van with motor’s peak power exceeding
100 kw but not exceeding 200kw::
8703.80.59 0 30 Other
200 kw but not exceeding 300kw
8703.80.69 0 45 Other
55 | P a g e

300 kw
8703.80.79 0 60 Other
8703.80.99 0 60 Other
Other, with spark-ignition internal combustion
piston engine
g.v.w. not exceeding 5 tonnes
Double-cab pick-up principally designed for the
transport of goods and having more than 2 seats
8704.31.10 0 60 including driver for the transportation of persons
Moter vehicle having Spark Ignition internal
combution piston engine & push electronic
8704.51 moter both
GVW <
50Ton
Single cab pick-up principally designed for the
transport of goods and having 2 seats including
8704.51.20 0 50 driver
8704.51.30 0 30 Delivery VAN
8704.51.40 0 30 Three wheeler
8704.51.50 0 5 Van with refrigerater System
Vehicle for garbage transport with compression
8704.51.60 0 5 Facility
8704.51.90 0 5 Other
GVW >
50Ton

8704.52.20 0 5 Special purpose vehicle for Milk transport
8704.52.30 0 5 Container Truck
8704.52.90 0 5 Other
Motorcycles (including mopeds) and cycles fitted
with an auxiliary motor with or without side-cars;
8711 side-cars.
Cininder Motorcycles (including mopeds) and
cycles fitted with an auxiliary motor with or
8711.20 without side-cars; side-cars.
Unassembeled- Exceeding 200cc but not exceeding
8711.20.99 60 80 250 CC.
-With reciprocating internal combustion piston
engine of a cylinder capacity exceeding 250 cc but
8711.30 not exceeding 500 cc:
56 | P a g e
8711.30.90 80 90 Other
Tricycles, scooters, pedal cars and similar wheeled
toys; dolls' carriages; dolls; Other toys; reduced-
size ("scale") models and similar recreational
9503.00.00 5 10 models, working or not; puzzles of all kinds
Festive, carnival or other entertainment articles,
9504.90.00 5 10 including conjuring tricks and novelty jokes.
Roundabouts, swings, shooting galleries and other
fairground amusements; travelling circuses and
9508 5 10 travelling menageries; travelling theatres
Remarks:
 For Exhaustive List of Excise Duty, please refer to Revised Schedule of Excise
Tariff of Excise Act, 2058 given in Finance Bill, 2079.
Sundries:-
 Entrepreneur except Hotel, restaurant and Party palace business, carrying
business of liquor shall carry out business of liquor and Tobacco contained goods
only.(4 Gha-2)
 If license holder do not renew their license within prescribed time then the
license shall be automatically cancelled.
 If person carry out transaction related to liquor and tobacco using others brand
or without brand then he shall be liable for penalty under section 16(2) .16(2(ga1)
 For calculation of excise on liquor higher rate amongst per L.P. Ltr or per ltr will
be taken.
 Cocktail of any liquor shall be considered under 2206.00.40 and accordingly
excise shall be levied.
 Following Vehicles are exempted from Excise Duty: Ambulance, Dead-Body
Carrying Vehicle, Chassis of Battery Operated Tempo and Scooter meant for
disabled/incapacitated person. (Excise paid on scooter meant for disabled
person will be refunded after such vehicle is registered in above mention person.
 Raw Noodles (NOT READY TO EAT) prepared from Hand Machine and Cottage
Technology is exempted from Excise Duty.
 No Excise to be levied on Personal Goods carried by Individual in which custom
is not applicable.
 Exemption on excise for minimum of busses with 40+ seating capacity (Either
Chassis only or ready bus) imported for public transportation by cooperatives or
other company (Registered with the objective of running 5 or more public
transportation). However, such vehicles are allowed to be sold or transferred
within 10 years from the date of acquisition only by paying full excise as per
prevailing act.
 Community Education institute is allowed to purchase 2 bus of 30 seat or more
with the recommendation of Ministry of Education, Science & Technology for the
specified purpose without paying excise duty. However, such vehicles are
allowed to be sold or transferred within 10 years from the date of acquisition
57 | P a g e
only by paying full excise as per prevailing act.

 80 % Exemption on Excise Duty on domestic production of Brandy & Wine from
local fruits/vegetables by industries established in Highly Undeveloped Area as
defined by Schedule 9 of Industrial Policy, 2067.
 35% rebate on excise on locally produced wine u/h 22.04 & 22.05.
 40% rebate on excise on locally produced cider u/h 22.06
 50 % Exemption on Excise Duty on domestic production of unassembled vehicles
u/h 87.02, 87.03, 87.11.
 No excise on locally manufactured items under various heads
शीर्थक ०२.०१, ०२.०२, ०२.०३, ०२.०४, ०२.०५, ०२.०६, ०२.०७, ०२.०८, ०२.०९, ०२.१०, ०३.०१, ०३.०२, ०३.०३, ०३.०४,
०३.०५, ०३.०६, ०३.०७, ०३.०८, ०३.०९, ०४.०२, ०८.०१, ०८.०२, ०८.०३, ०८.०४, ०८.०६, ०८.०९, ०८.१२, ०८.१३, ०९.०४,
०९.०६, ०९.१०, ११.०६, १२.०७, १४.०१, १४.०४, १५.०९, १५१७, 16.०१, 16.० 2, 16.०३, 312 16.०४, १६.05, 20.01,
20.० 2, 20.0 ३, 20.०४, 20.०६, 20.0 ७, 20.०८, 2 १.0 ५, २४.०१, २५.१५, २५.१६, ३९.१७, 44.0 १, 44.0 २, 44.0 ३,
44.0 ४, 44.0 ५, 44.0 ६, 44.07, 44.09, 44.10, 44.11 ४४.१२, 44.13, 44.1 ४, 44.18, 44.19, 44.20, 44.21, 48.०३,
६८.०२, ६८.०८, ६८.०९, ६८.१०, ६८.११, ६९.०७, 72.07, 72.09, 72.१०, 72.११, 72.13, ७२.१४, 72.15, ७२.१६, 72.17,
72.23, 72.24, 72.2 ५, 72.29, 73.07, 73.08, 73.09, 73.12, 73.13, 73.14, 73.15, 73.17, ७६.०४, ९४.०१, ९४.०३ र
९४.०६ तर्य उपशीर्थक ०४०२.10.10, ०४०२.10.९ 0, ०४०२.२१.० 0, ०४०२.२९.९ 0, ०४०२.९१.० 0, ०४०२.९९.० 0,
1404.90.२ 0, 1404.90.30, 1404.90.४ 0, 1404.90.५ 0, 1404.90.६ 0, 1404.90.७ 0, 1404.90.८ 0, 1601.00.00,
१७०१.१३.१०, १७०१.१४.१०, १७०४.१०.००, १७०४.९०.००, 1905.१ 0.० 0, 1905.२ 0.० 0, 1905.३१.० 0, 1905.३२.० 0,
1905.४०.० 0, 1905.९०.१ 0, 1905.90.30, 1905.९०.५ 0, 1905.९०.६ 0, 1905.९०.७ 0, २००५.10.00, २००५.२ 0.९ 0,
२००५.४ 0.00, २००५.५१.00, २००५.५९.00, २००५.६ 0.00, २००५.७ 0.00, २००५.८ 0.00, २००५.९१.00, २००५.९९.00,
२१०१.११.००, २१०१.१२.००, २१०१.२०.००, २१०१.३०.००, 2106.90.10, ३९२१.९०.११, ३९२१.९०.९२, 3923.10.20
3924.10.10, 4818.10.00 313 4818.20.00 4818.30.00 4818.50.00 4818.90.00 ६४०४.११.१०, ६४०५.२०.१०,
7311.00.20, 7311.00.90, 7320.10.90, ८५०७.१०.००, ८५०७.२०.००, ८५४४.७०.००, ९४०६.१०.९०, ९४०६.२०.०० र
९४०६.९०.९०
 Excise to be levied at net kilogram weight of 2106.90.20, 2106.90.60, 2403.99.10,

2403.99.20, 2403.90.30, 2404.11.00, 2404.12.00, 2404.19.00.
 5% excise to be levied on local manufacturing of 33.03, 33.04, 33.05, 33.06, 33.07
(Perfumes, Toilet water & Beauty product).
 Public Notification of MRP for liquor, beer & cigarette at the beginning of F/Y
and at the time of changes in price to be done.
 Input Credit on Excise duty is not allowed on auxiliary raw materials and
packing materials.
 Excise License is not required where goods are cleared under self-removal
system except for cigarette, liquor and tobacco products.
 Tobacco Industries are now allowed under self-removal system.
 For tobacco, liquor and pan masala manufacturers there has to be at least 15% of
Value addition in the product to get refund.
 Manufacturers exporting excisable product can claim credit on the excise paid for
the raw materials used either through import or local purchase to manufacture
the finished product. Manufacturers also can claim for the refund of balance
58 | P a g e
credit to the excise officer within one year from the date of filing of return.
 Deposit against appeal for Administrative Review shall be 1/4th of disputed
amount.
 In case the taxpayer is not even satisfied with the order of Director General, it
may file an appeal against the order to revenue tribunal within 35 days of the
order received.
Deposit against Administrative Review: Section 19 (6)

 Section 19 (6s) – For cases to be filed as per this law at Revenue Tribunal, deposit
 Section 19 (6v) – For calculation of deposit amount (Cash or Bank Guarantee) as
per Section 19 (6s), 25% amount as submitted during filing case at
Administrative Review shall also be included.
F. CUSTOM DUTY
Revised Definition:
Import [Section 2(da)] means the act of bringing goods into Nepal from a foreign
country and includes containers purchase outside Nepal but impracticable to
physically bring the same to the customs point by the Shipping companies
registered in Nepal as a Container Service provider.
Newly Added Definition:

Inland Transport [Section 2(ha)] means taking Goods imported into Nepal by
declaring in any customs office to any other customs office for check pass.
Custom Service Charges:
59 | P a g e
 Custom Service Charges on import/export of goods (in excess of Rs. 5000)

C. continues to be as follows:
Charges per Pragyapan Patra Charges
On Exports Rs. 100
On Imports Rs. 500
 At the time of submitting Pragyapan Patra during Import, one should also
disclose brand, model, unit of measure, name of manufacturing company, and
other detail of imported goods along with Pragyapan Patra.
 During Import and Export of Goods, director and custom officers have rights to
verify the documents (sales/purchase books, import/export Books, and any
other) Presented by the exporter/Importer to get assured about the detail of
goods imported/ to be exported.
 If any Less Declaration of Values is found, Director and Custom Officers may
charge the fine as much as less declared value.
 If any Less Declaration of Quantity is found, Director and Custom Officers will
charge the less declared value and fine as per sec 57.
 Undeclared Imported Goods will be charged fine 5% of Custom Duty by

Directors and Custom Officers but fine is waived if goods are undeclared due
to some unavoidable reason.
 Any vehicle or transportation vehicle or construction equipment which is

brought to Nepal for limited time on deposit should be revoked within 35 days
of completion of work. Customs have to pay back the deposit amount within 90
days of application. If the applicant doesn’t collect the amount within the
stipulated time, such deposit shall be seized.
If any person has brought such items in bank guarantee before and customs has
not done auction of such goods, such party can take back the items after paying
relevant taxes. Fine & Penalties for the same shall be relieved upto Poush 2079.
Changes in Custom Duty:

Head Sub Head Description Old Rate Revised
Rate
3.05 Fish, dried, salted or in brine; smoked fish,
whether or not cooked before or during the
smoking process; flours, meals and pellets of
fish, fit for human consumption.
0305.10.00 Flours, meals and pellets of fish, fit for human Rs. 10/kg NA
consumption
60 | P a g e
4.03 Buttermilk, curdled milk and cream, yogurt,

kephir and other fermented or acidified milk
and cream, whether or not concentrated or
containing added sugar or other sweetening
matter or flavoured or containing added fruit,
nuts or cocoa.
0403.10.00 Yogurt Rs. 15/kg NA
7.13 Dried leguminous vegetables, shelled, whether
or not skinned or split.
0713.10.10 Peas (Unpelled & Skinned) Rs. 15/Kg Rs. 30/Kg
0713.10.90 Peas (Others) Rs. 15/Kg Rs. 30/Kg
8.02 Other nuts, fresh or dried, whether or not
shelled or peeled.
0802.80.00 Areca nuts Rs. 45/kg Rs. 100/kg
0802.91.00 In-Shell Pine nuts Newly Rs. 10/Kg
Inserted
0802.92.00 Shelled Pine nuts Newly Rs. 10/Kg
Inserted
0802.99.00 Others Newly Rs. 10/Kg
Inserted
21.03 Sauces and preparations therefor, mixed
condiments and mixed seasonings; mustard
flour and meal and prepared mustard.
2103.10.00 Soya Sauce Rs. 20/Kg Rs. 30/Kg
2103.20.00 Tomato Ketchup & Other Tomamto Sauce Rs. 20/Kg Rs. 30/Kg
2103.90.10 Mixed condiments and Mixed seasonings Rs. 15/Kg Rs. 30/Kg
2103.90.20 Pickle (Achar) Rs. 20/Kg Rs. 30/Kg
2103.90.90 Other Rs. 20/Kg Rs. 30/Kg
21.04 Soups and broths and preparations therefor;
homogenised composite food preparations.
2104.10.00 Soups and broths and preparations therefor Rs. 15/Kg Rs. 20/Kg
2104.20.00 Homogenised composite food preparations Rs. 15/Kg Rs. 20/Kg
21.06 Food preparations not elsewhere specified or
included.
2106.90.50 Pachak, Rochak & Similar goods Rs. 15/Kg Rs. 20/Kg
2106.90.60 Scented areca nuts without Tobacco Rs. 50/kg Rs. 100/kg
2106.90.91 Food Suppliments Rs. 20/Kg Rs. 30/Kg
22.02 Waters, including mineral waters and aerated
waters, containing added sugar or other
sweetening matter or flavoured, and other non-
alcoholic beverages, not including fruit or
vegetable juices of Heading 20.09.
2202.99.10 Energy Drinks Rs. 70/Ltr Rs. 100/Ltr
22.07 Undenatured ethyl alcohol of an alcoholic
strength by volume of 80% vol. or higher; ethyl
alcohol and other spirits, denatured, of any
strength.
2207.10.10 Undenatured ethyl alcohol Rs. 50/Ltr Rs. 60/Ltr
2207.10.20 Rectified spirit used as a raw material for liquer of Rs. 50/Ltr Rs. 60/Ltr
an alcoholic strength by volume of 80% vol. or
higher
61 | P a g e
2207.10.30 E.N.A. (Extra Neutral Alcohol) Rs. 50/Ltr Rs. 60/Ltr

2207.10.40 Anhydrous Ethanol (of an alcoholic strength by Rs. 50/Ltr Rs. 60/Ltr
volume exceeding 99% vol.)
2207.10.90 Other Rs. 50/Ltr Rs. 60/Ltr
2207.20.10 Ethyl alcohol and other spirits, denatured, of any Rs. 50/Ltr Rs. 60/Ltr
strength-
Denatured spirit of an alcoholic strength by
volume from 80% to 99% alcohol)
2207.20.90 Ethyl alcohol and other spirits, denatured, of any Rs. 50/Ltr Rs. 60/Ltr
strength-
Others
24.02 Cigars, cheroots, cigarillos and cigarettes, of
tobacco or of tobacco substitutes.
2402.10.00 Cigars, cheroots and cigarillos, containing tobacco Rs. Rs.
4,500/1,0 9,000/1,000
00 sticks sticks
2402.90.20 Other: Rs. Rs.
All kinds of cigar 4,500/1,0 9,000/1,000
00 sticks sticks
2402.90.90 Other: Rs. Rs.
Others 4,500/1,0 9,000/1,000
00 sticks sticks
24.03 Other manufactured tobacco and manufactured
tobacco substitutes; “homogenised” or
“reconstituted” tobacco; tobacco extracts and
essences
2403.99.10 Jarda, Khaini, Snuff, Ghutka and similar Rs. 40/kg Rs. 80/kg
preparations containing chewing tobacco
2403.99.20 Packed chewing tobacco, to be mixed in lime, put Rs. 40/kg Rs. 80/kg
up for retail sale
2403.99.30 Cut tobacco, dust tobacco not for retail sale Rs. 40/kg Rs. 80/kg
2403.99.91 Other: Hukkah Flavour Rs. 40/kg Rs. 80/kg
2403.99.99 Other: Others Rs. 40/kg Rs. 80/kg
26.18 Granulated slag (slag sand) from the
manufacture of iron or steel.
2618.00.00 Granulated slag (slag sand) from the manufacture Rs. Rs.
of iron or steel. 500/Mt 1,000/Mt
26.19 Slag, dross (other than granulated slag), scalings
and other waste from the manufacture of iron or
steel.
2619.00.00 Slag, dross (other than granulated slag), scalings Rs. Rs.
and other waste from the manufacture of iron or 500/Mt 1,000/Mt
steel.
27.13 Petroleum coke, petroleum bitumen and other
residues of petroleum oils or of oils obtained
from bituminous minerals.
2713.11.00 Petroleum coke: Not calcined Rs. 10/Kg Rs. 5/Kg
2713.12.00 Petroleum coke: calcined Rs. 10/Kg Rs. 5/Kg
28.36 Carbonates; peroxocarbonates (percarbonates);
commercial ammonium carbonate containing
ammonium carbamate.
62 | P a g e
2836.20.00 Disodium carbonate Rs. 10/Kg Rs. 5/Kg

2836.30.00 Sodium hydrogencarbonate (sodium bicarbonate) Rs. 10/Kg Rs. 5/Kg
2836.40.00 Potassium carbonates Rs. 10/Kg Rs. 5/Kg
2836.50.00 Calcium carbonate Rs. 10/Kg Rs. 5/Kg
2836.91.00 Lithium carbonates Rs. 10/Kg Rs. 5/Kg
2836.92.00 Other: Strontium carbonate Rs. 10/Kg Rs. 5/Kg
2836.99.00 Other: Other Rs. 10/Kg Rs. 5/Kg
30.02 Human blood; animal blood prepared for
therapeutic, prophylactic or diagnostic uses;
antisera, other blood fractions and
immunological products, whether or not
modified or obtained by means of
biotechnological processes; vaccines, toxins,
cultures of micro-organisms (excluding yeasts)
and similar products. -Antisera, other blood
fractions and immunological products, whether
or not modified or obtained by means of
biotechnological processes :
3202.11.00 Antisera, other blood fractions and Removed Removed
immunological products, whether or not modified
or obtained by means of biotechnological
processes :
Malaria diagnostic test kits
3202.19.00 Antisera, other blood fractions and Removed Removed
immunological products, whether or not modified
or obtained by means of biotechnological
processes :
Other
30.06 Pharmaceutical goods specified in Note 4 to this
Chapter
3006.20.00 Blood grouping reagents Removed Removed
32.08 Paints and varnishes (including enamels and
lacquers) based on synthetic polymers or
chemically modified natrual polymers,
dispersed or dissolved in a non-aqueous
medium; solutions as defined in Note 4 to this
Chapter.
3208.10.00 Based on polyesters Rs. 30 per Rs. 40 per
kg/Ltr kg/Ltr
3208.20.00 Based on acrylic or vinyl polymers Rs. 30 per Rs. 40 per
kg/Ltr kg/Ltr
3208.90.00 Other Rs. 30 per Rs. 40 per
kg/Ltr kg/Ltr
32.09 Paints and varnishes (including enamels and
lacquers) based on synthetic polymers or
chemically modified natrual polymers,
dispersed or dissolved in an aqueous medium.
3209.10.10 Based on acrylic or vinyl polymers: Acrylic Rs. 30 per Rs. 40 per
Emulsion kg/Ltr kg/Ltr
3209.10.90 Based on acrylic or vinyl polymers: Other Rs. 30 per Rs. 40 per
kg/Ltr kg/Ltr
3209.90.00 Others Rs. 30 per Rs. 40 per
63 | P a g e
kg/Ltr kg/Ltr
32.10 Other paints and varnishes (including enamels,
lacquers and distempers); prepared water
pigments of a kind used for finishing leather.
3210.00.10 Thermoplastic road marking material Rs. 30/kg Rs. 40/kg
3210.00.90 Other Rs. 30 per Rs. 40 per
kg/Ltr kg/Ltr
34.01 Soap; organic surface-active products and
preparations for use as soap, in the form of bars,
cakes, moulded pieces or shapes, whether or not
containing soap; organic surface-active products
and preparations for washing the skin, in the
form of liquid or cream and put up for retail
sale, whether or not containing soap; paper,
wadding, felt and non-wovens, impregnated,
coated or covered with soap or detergent.
3401.11.00 Soap and organic surface-active products and Rs. 20/Kg Rs. 30/Kg
preparations, in the form of bars, cakes, moulded
pieces or shapes, and paper, wadding, felt and
nonwovens, impregnated, coated or covered with
soap or detergent:
--For toilet use (including medicated products)
3401.19.00 Soap and organic surface-active products and Rs. 20/Kg Rs. 30/Kg
preparations, in the form of bars, cakes, moulded
pieces or shapes, and paper, wadding, felt and
nonwovens, impregnated, coated or covered with
soap or detergent:
--Others
3401.20.90 -Soap in other forms: Rs. 20/Kg Rs. 30/Kg
--Others
3401.30.00 Organic surface-active products and preparations Rs. 20/Kg Rs. 30/Kg
for washing the skin, in the form of liquid or
cream and put up for retail sale, whether or not
Containing Soap
34.02 Organic surface-active agents (other than soap);
surface-active preparations, washing
preparations (including auxiliary washing
preparations) and cleaning preparations,
whether or not containing soap,
3402.39.00 -Ioninc Organic surface-active agents, whether or Rs. 20/Kg Rs. 30/Kg
not put up for retail sale:
--Others
3402.41.00 - Other Organic surface-active agents, whether or Rs. 20/Kg Rs. 30/Kg
--Cationic
3402.42.00 -Other Organic surface-active agents, whether or Rs. 20/Kg Rs. 30/Kg
--Non-ionic
3402.49.00 -Other Organic surface-active agents, whether or Rs. 20/Kg Rs. 30/Kg
--Others
64 | P a g e
3402.50.10 - Readymade goods put up for Retails Sales: Rs. 20/Kg Rs. 30/Kg
--Detergent Powder
3402.50.90 - Readymade goods pur up for Retails Sales: Rs. 20/Kg Rs. 30/Kg
--Others
3402.90.00 - Other Rs. 20/Kg Rs. 30/Kg
39.18 Floor coverings of plastics, whether or not self-
to this Chapter.
3918.10.10 -Of polymers of vinyl chloride: Rs. 30/Kg Rs. 40/Kg
---Floor coverings, in rolls or in the form of tiles
3918.10.90 -Of polymers of vinyl chloride: Rs. 30/Kg Rs. 40/Kg
---Others
3918.90.10 -Of other plastics: Rs. 30/Kg Rs. 40/Kg
---Floor coverings, in rolls or in the form of tiles
---Others
39.19 Self-adhesive plates, sheets, film, foil, tape, strip
and other flat shapes, of plastics, whether or not
in rolls.
3919.10.00 -In rolls of a width not exceeding 20 cm Rs. 30/Kg Rs. 40/Kg
3919.90.00 -other Rs. 30/Kg Rs. 40/Kg
39.20 Other plates, sheets, film, foil and strip, of
plastics, non-cellular and not reinforced,
laminated, supported or similarly combined
with other materials.
3920.10.10 -Of polymers of ethylene: Rs. 30/Kg Rs. 40/Kg
--Printed
3920.10.90 -Of polymers of ethylene: Rs. 15/Kg Rs. 30/Kg
--Others
3920.20.10 -Of polymers of propylene: Rs. 20/Kg Rs. 30/Kg
--Printed
3920.20.90 -Of polymers of propylene: Rs. 15/Kg Rs. 30/Kg
--Others
3920.30.10 -Of polymers of styrene: Rs. 20/Kg Rs. 30/Kg
-----Printed
3920.30.90 -Of polymers of styrene: Rs. 15/Kg Rs. 30/Kg
-----Others
3920.43.10 -Of polymers of Vinyl chloride: Rs. 20/Kg Rs. 30/Kg
--Containing by weight not less than 6% of
plasticisers:
----Printed
--Containing by weight not less than 6% of
plasticisers:
----Others
--Others:
---Printed
65 | P a g e
3920.51.10 -Of acrylic polymers: Rs. 20/Kg Rs. 30/Kg

--Of poly(methyl methacrylate):
-----Printed
3920.51.90 -Of acrylic polymers: Rs. 15/Kg Rs. 30/Kg
--Of poly(methyl methacrylate):
-----Others
3920.59.10 --Of acrylic polymers: Rs. 20/Kg Rs. 30/Kg
---Others:
---Printed
3920.59.90 --Of acrylic polymers: Rs. 15/Kg Rs. 30/Kg
---Others:
---Other
3920.61.10 -Of polycarbonates, alkyd resins, polyallyl esters Rs. 20/Kg Rs. 30/Kg
or other polyesters:
--Of polycarbonates:
---Printed
--Of polycarbonates:
---Others
--Of poly (ethylene terephthalate)::
---Printed
--Of poly (ethylene terephthalate)::
---Other
--Of unsaturated polyesters::
---Printed
--Of unsaturated polyesters::
---Printed
--Of other polyesters:
---Printed
--Of other polyesters:
---Others
3920.71.10 -Of cellulose or its chemical derivatives: Rs. 20/Kg Rs. 30/Kg
--Of regenerated cellulose:
----Printed
--Of regenerated cellulose:
----Others
66 | P a g e
--Of cellulose acetate::
----Printed
--Of cellulose acetate::
----Others
----Of other cellulose derivatives:
----Printed
----Of other cellulose derivatives:
----Printed
--Of poly (vinyl butyral):
--- Printed
--Of poly (vinyl butyral):
---Other
--Of polyamides:
--- Printed
--Of polyamides:
--- Other
----Of amino-resins::
--- Printed
----Of amino-resins::
--- Others
--Of phenolic resins:
--- Printed
--Of phenolic resins:
--- Others
--Of other plastics:
--- Printed
--- Others
39.21 Other plates, sheets, film, foil and strip, of
plastics.
3921.11.10 -Cellular: - Rs. 20/Kg Rs. 30/Kg
--Of polymers of styrene:
---Printed
67 | P a g e

--Of polymers of styrene:
---Others
--Of polymers of vinyl chloride:
---Printed
--Of polymers of vinyl chloride:
---Others
----Of polyurethanes::
---Printed
----Of polyurethanes::
---Others
---Of regenerated cellulose:
---Printed
---Of regenerated cellulose:
---Others
---Printed
3921.19.90 -Cellular: Rs. 15/Kg Rs. 30/Kg
---Others
3921.90.11 -Other: Rs. 20 per Rs. 30 per
--Printed: sq. m/Kg sq. m/Kg
---Decorative laminate sheets such as sunmica
and formica
3921.90.19 -Other: Rs. 20/Kg Rs. 30/Kg
--Printed:
---Other
3921.90.91 -Other: Rs. 15/Kg Rs. 30/Kg
--Other:
---Thermacol
--Other: sq. m/Kg sq. m/Kg
---Decorative laminate sheets such as sunmica
and formica
3921.90.99 -Other: Rs. 15/Kg Rs. 30/Kg
--Other:
---Other
42.02 Trunks, suit-cases, vanity-cases, executive-cases,
brief-cases, school satchels, spectacle cases,
binocular cases, camera cases, musical
instrument cases, gun cases, holsters and similar
containers; travelling-bags, insulated food or
beverages bags, toilet bags, rucksacks,
68 | P a g e
handbags, shopping bags, wallets, purses, map-

cases, cigarette-cases, tobacco-pouches, tool
bags, sports bags, bottle-cases, jewellery boxes,
powder- boxes, cutlery cases and similar
containers, of leather or of composition leather,
of sheeting of plastics, of textile materials, of
vulcanised fibre or of paperboard, or wholly or
mainly covered with such materials or with
paper.
4202.11.00 -Trunks, suit-cases, vanity-cases, executive- cases, Rs. Rs. 30/Pcs
briefcases, school satchels and similar containers: 20/Pcs
--With outer surface of leather or of composition
leather
--With outer surface of plastics or of textile
materials
--Others
4202.21.00 -Handbags, whether or not with shoulder strap, Rs. Rs. 30/Pcs
including those without handle: 20/Pcs
leather
--With outer surface of sheeting of plastics or of
textile material
--Other
---Of felt (Jamoth)
--Other
---Other
4202.31.00 -Articles of a kind normally carried in the pocket Rs. 20 per Rs. 30 per
or in the handbag: Kg/Pcs Kg/Pcs
leather
--With outer surface of sheeting of plastics or of
textile materials
--Other:
---Of felt (Jamoth)
--Other:
---Other
69 | P a g e

--With outer surface of leather or of composition Kg/Pcs Kg/Pcs
leather
--With outer surface of sheeting of plastics or of Kg/Pcs Kg/Pcs
textile materials
--Other: Kg/Pcs Kg/Pcs
---Of felt (Jamoth)
--Other: Kg/Pcs Kg/Pcs
---Of felt (Jamoth)
44.18 Builders' joinery and carpentry of wood,
including cellular wood panels, assembled
flooring panels, shingles and shakes.
4418.60.00 -Posts and beams Rs. 20/Kg
49.05 Maps and hydrographic or similar charts of all
kinds, including atlases, wall maps,
topographical plans and globes, printed.
4905.10.00 Rs.6 per Rs.10 per
-Globes Kg/Pcs Kg/Pcs
57.02 Carpets and other textile floor coverings, woven,
not tufted or flocked, whether or not made up,
including "Kelem", "Schumacks", "Karamanie"
and similar handwoven rugs
5702.20.00 -Floor coverings of coconut fibres (coir) Rs.15/m2 Rs. 30/m2
64.01 Waterproof footwear with outer soles and
uppers of rubber or of plastics, the uppers of
which are neither fixed to the sole nor
assembled by stitching, riveting, nailing,
screwing, plugging or similar processes.
6401.10.00 -Footwear incorporating a protective metal toe- Rs.30/ Rs.40/Pair
cap Pair
6401.92.00 -Other footwear: Rs.30/ Rs.40/Pair
--Covering the ankle but not covering Pair
--Other Pair
64.02 Other footwear with outer soles and uppers of
rubber or plastics
6402.12.00 -Sports footwear: Rs.30/ Rs.40/Pair
--Ski-boots, cross-country ski footwear and Pair
snowboard boots
6402.19.00 -Sports footwear: Rs.30/ Rs.40/Pair
--Other Pair
6402.20.00 -Footwear with upper straps or thongs assembled Rs.30/ Rs.40/Pair
to the sole by means of plugs Pair
--Covering the ankle Pair
64.03
Footwear with outer soles of rubber, plastics,
70 | P a g e
leather or composition leather and uppers of

leather.
6403.12.00 -Sports fotwear: Rs.30/ Rs.40/Pair
--Ski-boots, cross-country ski footwear and Pair
snowboard boots
6403.19.00 -Sports fotwear: Rs.30/ Rs.40/Pair
--Other Pair
6403.20.00 -Footwear with outer soles of leather, and uppers Rs.30/ Rs.40/Pair
which consist of leather straps across the instep Pair
and around the big toe
6403.40.00 -Other footwear, incorporating a protective metal Rs.30/ Rs.40/Pair
toe-cap Pair
toe-cap Pair
--Covering the ankle
toe-cap Pair
--Other
64.04 Footwear with outer soles of rubber, plastics,
leather or composition leather and uppers of
textile materials.
6404.11.90 -Footwear with outer soles of rubber or plastics: Rs.30/ Rs.40/Pair
--Sports footwear; tennis shoes, basketball shoes, Pair
gym shoes, training shoes and the like:
---Having the upper parts of other fabrics
6404.19.00 -Footwear with outer soles of rubber or plastics: Rs.30/ Rs.40/Pair
--Other Pair
6404.20.00 -Footwear with outer soles of leather or Rs.30/ Rs.40/Pair
composition leather Pair
64.05 Other footwear
6405.10.00 Rs.30/ Rs.40/Pair
-With uppers of leather or composition leather Pair
6405.20.91 -With uppers of textile materials: Rs.30/ Rs.40/Pair
---Other textile materials: Pair
----Of Felt (Jamoth)
6405.20.99 -With uppers of textile materials: Rs.30/ Rs.40/Pair
---Other textile materials: Pair
----Other
6405.90.00 Rs.30/ Rs.40/Pair
-Other Pair
68.12 Fabricated asbestos fibres; mixtures with a basis
of asbestos or with a basis of asbestos and
magnesium carbonate; articles of such mixtures
or of asbestos (for example, thread, woven
fabric, clothing, headgear, footwear, gaskets),
whether or not reinforced, other than goods of
Heading 68.11 or 68.13.
71 | P a g e
6812.92.00 - Other: Rs.7.25/ Rs.15/KG

--Paper, millboard and felt KG
6812.93.00 - other: Rs.7.25/ Rs.15/KG
--Compressed asbestos fibre jointing, in sheets KG
or rolls
69.07 Ceramic flags and paving, hearth or wall tiles;
ceramic mosaic cubes and the like, whether or
not on a backing; finishing ceramics.
6907.21.00 -Flags and paving, hearth or wall tiles, other than Rs.30/M2 Rs.40/M2
those of subheadings 6907.30 and 6907.40 :
--Of a water absorption coefficient by weight not
exceeding 0.5 %
--Of a water absorption coefficient by weight
exceeding 0.5 % but not exceeding 10 %
--Of a water absorption coefficient by weight
exceeding 10 %
6907.30.00 -Mosaic cubes and the like, other than those of Rs.30/M2 Rs.40/M2
subheading 6907.40
6907.40.00 -Finishing ceramics Rs.30/M2 Rs.40/M2
72.09 Flat-rolled products of iron or nonalloy steel, of
a width of 600 mm or more, cold-rolled (cold-
reduced), not clad, plated or coated.
7209.15.00 -In coils, not further worked than cold rolled Rs.5/KG Rs.15/KG
(cold-reduced):
--Of a thickness of 3 mm or more
(cold-reduced):
--Of a thickness exceeding 1 mm but less than 3
mm
(cold-reduced):
--Of a thickness of 0.5 mm or more but not
exceeding 1 mm
(cold-reduced):
--Of a thickness of less than 0.5 mm
-Not in coils, not further worked than cold-rolled
(cold-reduced):
7209.25.00 -Not in coils, not further worked than cold-rolled Rs.5/KG Rs.15/KG
(cold-reduced):
--Of a thickness of 3 mm or more
(cold-reduced):
--Of a thickness exceeding 1 mm but less than 3
mm
(cold-reduced):
--Of a thickness of 0.5 mm or more but not
72 | P a g e
exceeding 1 mm
(cold-reduced):
--Of a thickness of less than 0.5 mm
7209.90.00 - Other Rs.5/KG Rs.15/KG
a width of 600 mm or more, clad, plated or
coated.
7210.41.00 -Otherwise plated or coated with zinc: Rs.20/KG Rs.30/KG
--Corrugated
a width of less than 600 mm, not clad, plated or
coated.
-Not further worked than hot-rolled:
7211.13.00 --Rolled on four faces or in a closed box pass, of a 10 30
width exceeding 150 mm and a thickness of not
less than 4 mm, not in coils and without patterns
in relief
7211.14.00 --Other, of a thickness of 4.75 mm or more 10 30
7211.19.00 --Other 10 30
-Not further worked than cold-rolled (cold-
reduced):
7211.23.00 --Containing by weight less than 0.25% of carbon 10 30
7211.29.00 --Other 10 30
7211.90.00 -Other 10 30
72.13 Bars and rods, hot-rolled, in irregularly wound
coils, of iron or non-alloy steel.
-Other:
--Of circular cross-Section measuring less than 14
mm in diameter :
7213.91.10 ---Not more than 8 mm Rs.5/KG Rs.10/KG
72.16 Angles, shapes and Sections of iron or non-alloy
steel.
7216.10.00 -U, l or H Section, not further worked than hot- Rs.20/KG Rs.30/KG
rolled, hot-drawn or extruded, of a height of less
than 80 mm
L or T Sections, not further worked than hot-
rolled, hot-drawn or extruded, of a height of less
than 80 mm:
7216.21.00 --L Sections Rs.20/KG Rs.30/KG
7216.22.00 --T Sections Rs.20/KG Rs.30/KG
-U, l or H Sections, not further worked than hot-
rolled, hot-drawn or extruded of a height of 80
mm or more:
7216.31.00 --U Sections Rs.20/KG Rs.30/KG
7216.32.00 --I Sections Rs.20/KG Rs.30/KG
7216.33.00 --H Sections Rs.20/KG Rs.30/KG
7216.40.00 -L or T Sections, not further worked than hot- Rs.20/KG Rs.30/KG
rolled, hot-drawn or extruded, of a height of 80
mm or more
73 | P a g e
7216.50.00 -Other angles, shapes and Sections, not further Rs.20/KG Rs.30/KG
worked than hot-rolled, hotdrawn or extrude
-Angles, shapes, and Sections, not further worked
than cold-formed or cold- finished :
7216.61.00 --Obtained from flat-rolled products Rs.20/KG Rs.30/KG
7216.69.00 --Other Rs.20/KG Rs.30/KG
-Other :
7216.91.00 --Cold-formed or cold-finished from flatrolled Rs.20/KG Rs.30/KG
products
7216.99.00 --Other Rs.20/KG Rs.30/KG
72.17 Wire of iron or non-alloy steel.
7217.10.00 -Not plated or coated, whether or not polished Rs.10/KG Rs.30/KG
7217.20.00 -Plated or coated with zinc Rs.10/KG Rs.30/KG
7217.30.00 -Plated or coated with other base metals Rs.10/KG Rs.30/KG
7217.90.00 -Other Rs.10/KG Rs.30/KG
72.25 Flat-rolled products of other alloy steel, of a
width of 600 mm or more.
-Of silicon-electrical steel:
7225.11.00 --Grain-oriented Rs.10/KG Rs.30/KG
7225.19.00 --Other Rs.10/KG Rs.30/KG
7225.30.00 -Other, not further worked than hotrolled, in coil Rs.10/KG Rs.30/KG
7225.40.00 -Other, not further worked than hotrolled, not in Rs.10/KG Rs.30/KG
coils
7225.50.00 -Other, not further worked than coldrolled (cold- Rs.10/KG Rs.30/KG
reduced)
-Other:
7225.91.00 --Electrolytically plated or coated with zinc Rs.10/KG Rs.30/KG
7225.92.00 --Otherwise plated or coated with zinc Rs.10/KG Rs.30/KG
7225.99.00 --Other Rs.10/KG Rs.30/KG
72.27 Bars and rods, hot-rolled, in irregularly wound
coils, of other alloy steel.
7227.10.00 -Of high speed steel Rs.10/KG Rs.30/KG
7227.20.00 -Of silico-manganese steel Rs.10/KG Rs.30/KG
7227.90.00 -Other Rs.10/KG Rs.30/KG
73.12 Stranded wire, ropes, cables, plaited bands,
slings and the like, of iron or steel, not
electrically insulated
7312.10.00 -Stranded wire, ropes and cables Rs.15/KG Rs.30/KG
7312.90.00 -Other Rs.15/KG Rs.30/KG
73.17 7317.00.00 Nails, tacks, drawing pins, corrugated nails, Rs.15/KG Rs.30/KG
staples (other than those of Heading 83.05) and
similar articles, of iron or steel, whether or not
with heads of other material, but excluding such
articles with heads of copper.
74.19 Other articles of copper.
7419.10.00 Rs.7.25/ Rs.15/KG
-Chain and parts thereof KG
81.07 Cadmium and articles thereof, including waste
and scrap.
8107.20.00 Rs.7.25/ Rs.15/KG
-Unwrought cadmium; powders KG
74 | P a g e
8107.30.00 Rs.7.25/ Rs.15/KG

-Waste and scrap KG
8107.90.00 Rs.7.25/ Rs.15/KG
-Other KG
85.07 Electric accumulators, including separators
therefor, whether or not rectangular (including
square).
8507.40.00 Rs.20/ Rs.20/Nos
-Nickel iron Nos
85.19 Sound recording or reproducing apparatus.
8519.50.00 -Telephone answering machines Free Free
85.24 Touch Sensitive Fat Panel Display Modules
Driver Circuit:
8524.11.00 Newly Rs.15/Nos
Liquid Crystal Inserted
8524.12.00 Newly Rs.15/Nos
Organic Light emitted LED Inserted
8524.19.00 Newly Rs.15/Nos
Others Inserted
Others:
8524.91.00 Newly Rs.15/Nos
Liquid Crystal Inserted
8524.92.00 Newly Rs.15/Nos
Organic Light emitted LED Inserted
8524.99.00 Newly Rs.15/Nos
Others Inserted
85.28 Broadcast Receivers or Recordings or
Reproducing Apparatus whether or not
incorporating reception apparatus; Unassembled
Monitor and projector Radio-broadcast receivers
or sound or video recording or reproducing
apparatus:
Other Coloured:
Unassembled:
8528.72.99 Rs.20/ Rs.30/Nos
Others: Nos
87.03 Motor cars and other motor vehicles principally
designed for the transports of persons (other
than those of Heading 87.02), including station
wagons and racing cars.
8703.80.59 Car, Jeep, Van with motor’s peak power Rs.15/ Rs.30/Nos
exceeding 100 kw but not exceeding 200kw Nos
( Other)
exceeding 200 kw but not exceeding 300kw Nos
(Other)
exceeding 300 kw (Other) Nos
8703.80.99 Rs.40/ Rs.60/Nos
Other (Other than unassembled) Nos
87.04 Motor vehicles for the transport of goods.
Other Compression- Ignition internal
75 | P a g e
Combustion Piston Engine (Diesel or Semi

Diesel)
8704.21.60 Vehicle weight (G.V.W) upto 5 ton Rs.30/ Rs.15/Nos
Nos
Vehicles used for freight service or for collection
of garbage along with compactor (Compressor
Device)
8704.22.50 Vehicle weight (G.V.W) more than 5 ton upto 20 Rs.30/ Rs.15/Nos
ton Nos

Device)
8704.23.30 Vehicle weight (G.V.W) more than 20 ton Rs.30/ Rs.15/Nos
Nos
Device)
Other - Spark Ignition internal Combustion
Piston Engine only
Nos
Device)
Nos
Device)
Other Compression- Ignition internal
Combustion Piston Engine (Diesel or Semi
Diesel) and push technology electric vehicle,
both
Nos
Device)
8704.42.50 Vehicle weight (G.V.W) more than 5 ton upto 20 Rs.30/ Rs.15/Nos
ton Nos

Device)
Nos
Device)
Spark-Ignition internal Combustion Piston
Engine onlyand push technology electric
vehicle, both
76 | P a g e

Nos
Device)
Nos
Device)
87.11 Motorcycles (including mopeds) and cycles
fitted with an auxiliary motor with or without
side-cars; side-cars.
engine of a cylinder capacity exceeding 50 cc but
not exceeding 250 cc:
8711.20.99 Other (Other than Unassembled) Rs.30/ Rs.40/Nos
Nos
exceeding 250 cc
engine of a cylinder capacity exceeding 250 cc
but not exceeding 500 cc
8711.30.90 Rs.30/ Rs.70/Nos
Other (Other than unassembled) Nos
8711.40.00 -With reciprocating internal combustion piston Rs.30/ Rs.80/Nos
engine of a cylinder capacity exceeding 500 cc Nos
but not exceeding 800 cc
8711.50.00 -With reciprocating internal combustion piston Rs.30/ Rs.80/Nos
engine of a cylinder capacity exceeding 800 cc Nos
88.03 Parts of goods of Heading 88.01 or 88.02.
8803.10.00 -Propellers and rotors and parts thereof Rs.6/Nos Rs.10/Nos
8803.20.00 -Under-carriages and parts thereof Rs.6/Nos Rs.10/Nos
8803.30.00 -Other parts of aeroplanes or helicopters Rs.6/Nos Rs.10/Nos
8803.90.00 -Other Rs.6/Nos Rs.10/Nos
88.06 Unmanned Airplanes
8806.10.00 Newly Rs.10/Nos
Carrying passenger Inserted
Remote controlled flights only:
8806.21.00 Newly Rs.10/Nos
Maximum take-off weight upto 250 grams Inserted
8806.22.00 Maximum take-off weight more than 250 grams Newly Rs.10/Nos
upto 7 kilograms Inserted
8806.23.00 Maximum take-off weight more than 7 kilograms Newly Rs.10/Nos
8806.24.00 Maximum take-off weight more than 7 kilograms Newly Nil
8806.29.00 Newly Rs.10/Nos
Others Inserted
Other:
8806.91.00 Newly Rs.10/Nos
Maximum take-off weight upto 250 grams Inserted
77 | P a g e
8806.92.00 Maximum take-off weight more than 250 grams Newly Rs.10/Nos
8806.99.00 Newly Rs.10/Nos
Others Inserted
88.07 Parts of goods of Heading 88.01, 88.02 or 88.06
8807.10.00 Newly Rs.10/Nos
Propeller, rotor and their parts Inserted
8807.20.00 Newly Rs.10/Nos
Undercarriage and their parts Inserted
Other parts of airplanes, helicopter or unmanned
airplanes:
8807.30.10 Newly Rs.10/Nos
Parts of airplanes and helicopters Inserted
8807.30.90 Newly Rs.10/Nos
Unmanned Airplanes Inserted
8807.90.00 Newly Rs.10/Nos
Others Inserted
90.06 Photographic (other than cinematographic)
cameras; photographic flashlight apparatus and
flashbulbs other than discharge lamps of
Heading 85.39.
-Other cameras:
9006.51.00 --With a through-the-lens viewfinder (single lens Rs.5/Nos Rs.5/Nos
reflex (SLR)), for roll film of a width not exceeding
35 mm
9006.52.00 --Other, for roll film of a width less than 35 mm Rs.5/Nos Rs.5/Nos
91.14 Other clock or watch parts
9114.10.00 -Springs, including hair-springs Rs.6/Nos Rs.10/Nos
9404.40.00 Pillow, bedspread, Pillow (eiderdown) made with Newly Rs.20/Nos
feather of swarn or other such warm materials Inserted
and light pillow made of thread or other birds'
feather (Comfort)
 Agricultural Improvement Fees at the rate of 5 % shall be levied on the following

items (Section -16: Part-12 & Part-7)
Part-12
1207.21.00 1207.29.00 1208.10.00 1208.90.00 1209.10.00
1209.21.00 1209.22.00 1209.23.00 1209.24.00 1209.25.00
1209.29.00 1209.30.00 1209.91.10 1209.91.20 1209.91.30
1209.91.40 1209.91.50 1209.91.90 1209.99.00 1210.10.00
1210.20.00 1211.20.00 1211.30.00 1211.40.00 1211.50.00
1211.60.00 1211.90.10 1211.90.90 1213.00.00 1214.10.00
1214.90.00
78 | P a g e
Part-07
0701.10.00 0701.90.00 0702.00.00 0703.10.00 0703.20.00
0703.90.00 0704.10.00 0704.20.00 0704.90.00 0706.10.00
0706.90.00 0707.00.00 0708.10.00 0708.20.00 0708.90.00
0709.20.00 0709.30.00 0709.40.00 0709.51.00 0709.59.00
0709.60.00 0709.70.00 0709.91.00 0709.92.00 0709.93.00
0709.99.00 0710.10.00 0710.21.00 0710.22.00 0710.29.00
0710.30.00 0710.80.00 0710.90.00 0711.40.00 0711.51.00
0711.59.00 0711.90.00 0712.20.00 0712.31.00 0712.32.00
0712.39.00 0712.90.90 0713.39.10 0713.39.90 0713.40.10
0713.40.90 0713.50.10 0713.50.10 0713.90.10 0713.90.90
 Agricultural Improvement Fees at the rate of 9 % shall be levied on the

following items (Section -16(2): Part-07)
Part-07
0701.10.00 0701.90.00 0702.00.00 0703.10.00 0703.20.00
0703.90.00 0704.10.00 0704.20.00 0704.90.00 0706.10.00
0706.90.00 0707.00.00 0708.10.00 0708.20.00 0708.90.00
0709.20.00 0709.30.00 0709.40.00 0709.51.00 0709.59.00
0709.60.00 0709.70.00 0709.91.00 0709.92.00 0709.93.00
0709.99.00 0710.10.00 0710.21.00 0710.22.00 0710.29.00
0710.30.00 0710.80.00 0710.90.00 0711.40.00 0711.51.00
0711.59.00 0711.90.00 0712.20.00 0712.31.00 0712.32.00
0712.39.00 0712.90.90 0713.39.10 0713.39.90 0713.40.10
0713.40.90 0713.50.10 0713.50.90 0713.90.10 0713.90.90
Full Exemption of Import Duty:

 Pet Chips (Custom Code: 3907.61.00 and 3907.69.00) by POY
Manufacturing Industries (within limit prescribed by the Department of
Industries).
 Raw Jute(Custom code: 5303.10.00 and 5303.90.00) under Chapter 53 to be
imported by Jute Industries.
 Items imported by Nepal Govt. under 4907, 4909 stamps, excise stickers,
passports.
 Urine Bag under 3926.90.31
 Vehicle cleared with customs rebate for personal use while being
transferred to heir on death.
 Crude Petroleum oil and bitumen oil manufactured and imported from
India under head 2709.00.00.
79 | P a g e
 Following items manufactured and imported from India:-

Part 25
2502.00.00 2504.10.00 2504.90.00 2510.10.00 2511.10.00
2511.20.00 2513.10.00 2513.20.00 2519.90.00 2521.00.00
2525.10.00 2528.00.00
Part 26
2601.11.00 2601.12.00 2601.20.00 2602.00.00 2603.00.00
2604.00.00 2605.00.00 2606.00.00 2607.00.00 2608.00.00
2609.00.00 2610.00.00 2611.00.00 2612.10.00 2612.20.00
2613.10.00 2613.90.00 2614.00.00 2615.10.00 2615.90.00
2616.10.00 2616.90.00 2617.10.00 2617.90.00
Part 44
4401.11.00 4401.19.00 4401.21.00 4401.22.00 4401.31.00
4401.32.00 4402.39.00 4402.10.00 4402.20.00 4402.90.00
4403.11.00 4403.12.00 4403.21.00 4403.22.00 4403.23.00
4403.24.00 4403.25.00 4403.26.00 4403.41.00 4403.42.00
4403.49.00 4403.91.00 4403.93.00 4403.94.00 4403.95.00
4403.96.00 4403.97.00 4403.98.00 4403.91.10 4403.99.90
4404.10.00 4404.20.00 4406.11.00 4406.12.00 4406.91.00
4406.92.00 4407.11.00 4406.12.00 4407.13.00 4407.14.00
4407.19.00 4407.21.00 4407.22.00 4407.23.00 4407.25.00
4407.26.00 4407.27.00 4407.28.00 4407.29.00 4407.91.00
4407.92.00 4407.93.00 4407.94.00 4407.95.00 4407.99.00
 POY & Human Made Staple Fibers under Chapter 54 & 55 imported by
VAT registered Yarn Industries.
 Chassis, Engine, Motor & Battery Charger imported by Manufacturing
Industry of Electricity/Solar/Battery operated 2-Wheeler or 3-Wheeler or
4-Wheeler Vehicles and Steel sheet metal (72.25) for making frame, steel
tube (73.06), brass metal (7407.21.00), Aluminum rod (7604.10.90),
Aluminum sheet metal (7606.11.00) required for making chassis and frame
of 2 wheelers.
80 | P a g e
 Plastic bags used for blood circulation u/h 9801.90.00 and items imported
by Nepal Red Cross Society u/h 9018.90.00, 3002.90.10 and 3822.00.00
 Various Goods (viz. White Cane, Brale Printer etc.) used by blind people.
 Various Goods (viz. Wheel Chair, Tricycle, Artificial Organs, Hearing Aid,
Shoes etc.) used by handicapped people.
 Items imported by Nepal Rastra Bank including Gold & Silver.
1 % Import Duty:
 Helicopter, aeroplane and other parts imported by Flight Services or license
receiver from CAAN.
 Feeds or animal husbandry industries importing fish items under 0511.91.00,
2301.10.00, 2301.20.00 and 2521.00.00.
 Thread u/h 52.05 and 5207.10.00 imported by Cloth & Carpet Industry.
 Machines u/h 84, Parts & Spares u/h 8421, 8451 & Chemicals & Dies u/h
28,29,32,34,38 & 39 imported by Spinning & Cloth Industry.
 Equipment and their parts imported by industries u/h 9027.10.00, 9027.30.00 and
9027.90.00.
 Raw Materials and supplementary materials imported by tyre manufacturing
industries.
 Items used for converting fuel vehicles in to electric vehicles for vehicles
registered at Ministry of Transportation.
 Catalic converter and magnetizer for vehicle pollution control
 Ceiling filling machine u/h 8479.89.00
 Vaccum Ironing Table and Steam Iron imported by ready clothing industry.
 Seperator, Milk Chilling, Liquid Nitrogen, Industrial Refrigerator imported by
agricultural or animal husbandry industries.
 Dialysis bath concentrate u/h 3824.99.90 for kidney patients use.
 Packing Materials and parts imported by Tea Industries.
 Various items required for fishery like nets, cage, pump set and hormone.
 Cotton u/h 52.01, 52.02 and 52.03 imported by spinning industry.
 Various items for Bee Farming.
 Raw Amber used by industries manufacturing and exporting jewelries.
 Machines and parts imported by batteries reconditioning industries.
 Plastic Recycling machines and parts.
 Weigh machines imported by medicine manufacturers.
 Plastic bags manufacturing industries importing machines and parts for
producing supplement of plastic bags like jute, paper and cotton bags.
 Machines and parts for agro chemical industries.
 Offset Printing Press imported by cooperative formed by Nepalese publishers.
 Brass rods imported for manufacturing Gas Cylinder Valve.
 Insect Traps u/h 3926.90.93 and 8516.79.10
 Blended protein fiber yarn u/h 5108.10.90 and 5108.20.90 used by Pashmina
Industry.
 Cocoon Dryer u/h 8419.31.00 & Rolling Machine u/h 8445.40.00 used for Silk
81 | P a g e
Farming.
 Industries manufacturing Disposable diaper, Baby wipes, and Sanitary Pads
importing raw materials: Glue (helmet) 3506.91.00; Super Absorbent Polymer
3906.90.00; PE Film 3920.49.10 & 3920.49.90; PPE Film 3921.19.10 & 3921.10.90;
Tissue Paper 4803.00.00; Release Paper 4811.90.90; Non-Wooven Fabric
5603.91.00.
 Industries importing under HS 72.03.
Partial Exemption of Import Duty:

Particulars Custom
Rate
Man Made Staple Fibers under Chapter 55 imported by Carpet
Industries 90% Rebate
Medicines u/h 30 (Except vitamins) 5%
Machineries and parts u/h 84 except for household items imported 4%
under DOI Scheme under CKD or SKD
Breakfast Cereal manufacturing industries importing oats 5%
Polyster Film, BOPP Film, Extruded Polyfilm, , Metalized CPP and 10%
Milky CPP imported by Polycoating Paper and Printed lamination
industries registered under VAT
Items u/h 0407.11.00 & 0407.19.00 for Poulty 50% Rebate
Saree, lungi, towel, dhoti 10%
Coins imported by Banijya Bank having their mark imprinted As per head
7108.13.00
Items related to Cable Car 4%
Filler Master Batch u/h 39.20 10%
Machines u/h 84 imported by small scale industry (except Exempt 50% Rebate
items)
Chassis / Box under Custom Code 87.04 used for Vehicles installed 1%
with full refrigeration system for purpose of transport of goods in
refrigerated condition. [Applicable only after such Vehicle is
registered with Department of Transportation]
Tallow Oil (H.C. 15.03), Sodium Silicate (H.C. 2839) & Palm Acid Oil, 75% Rebate
Palm Fatty Acid & Acid Oil (H.C. 3823) imported by Industries
manufacturing Distilled Fatty Acid/ Steric Acid / Glycerin / Soap
82 | P a g e
having Splitting & Distillation Plant

Pre-loaded & Inbuilt software shall be charged as per the hardware
rate only.
Acrylic Emulsion u/h 3209.10.10 for Paint Industry 20%
Iron Oxide u/h 2821.10.00 and Titanium Oxide u/h 2823.00.00 for 5%
Paint Industry
Vehicles having oxygen system u/h 87.04 used by fisheries, fishing in 10%
at least 1 hectare land
Cooperatives & Companies established as public transport operator 5%
intended to purchase at least 5 buses of 40 seaters or more for the
specified purpose, only 5% import duty levy on buses & chassis of
buses. However, if such vehicles are sold or transferred within 10
years from the date of acquisition to any person other than public
transport operator registered as cooperatives or Companies, full
custom duty shall be recovered. Further, Road Construction &
08Development tax also waived for such vehicles
Slit Steel Coil imported by Prefabricated Building Manufacturers 20%
Base Oil imported by Grease & Lubricating oil manufacturers 15%
Cross Connection Cabinet box used in landlines. 15%
Import of Spare parts or subsidiary materials under HS 87.14 by 75% Rebate
Electric Motorcycle or Scooter Manufacturer & Spare parts or (PY 50%)
subsidiary materials & parts under HS 87.08 by E-Rickshaw
manufacturers
50% Rebate
Petroleum bulk bitumen imported by Manufacturing industries (PY 25%)
Soybean Seeds imported for manufacture of Soybean Oil 50% Rebate.
Sunflower Seeds and imported for manufacture of and Sunflower Oil.
Soybean Cake imported for Animal Feed Industries. Maize Seed &
Sugar Cane imported by industries 50% Rebate
Mustard Seeds, Rayo,Cyanola (Repsead) (HS : 1205.10.00) & items HS
1207.50.00 for industry producing edible oils 50% Rebate
Unassembled vehicles u/h 87.02 & 87.03 for industry producing
vehicles 25% Rebate
83 | P a g e
Items falling under sub-head 9619.00.10 (Sanitary towel pad) & sub-
head 9619.00.40 (tempon & menstrual cup) 90% Rebate
G. OTHER POINTS:
 Gold Brought By Travellers:

1. Raw Gold:
 First 50 Grams : Rs 9500/10 gram
 Next 50-100 Grams: Rs 10500/10 gram
2. Gold Jewellery
 First 50 Grams : Nil
Any excess quantity from allowed limit shall be seized.

Whereas in case of Foreigners, gold jewelry in excess of 50 grams and silver jewelry in
excess of 100 grams for personal use can be declared at customs point and in condition
of taking those back the goods shall be released at a declaration deposit of 20 % of the
value. The deposit amount will be refunded while returning back. In case of any
difference in quantity or quality is punishable u/s 57(1) of Customs Act 2064.
 Nepalese Citizens having worked for more than one year abroad shall be eligible to
bring TV of any type up to the size of 32” without payment of duty while returning
back to Nepal.
 Rebate on Goods Imported From India: Goods manufactured and imported from India
through LC, rebate of 5% on items on which the Import Duty is 5% to 30% and rebate of
3% of items with Import duty above 30%.
 Rebate on Goods Imported From Tibet: Goods manufactured and imported from
China Via Tibet through LC, rebate of 5% on items on which the Import Duty is 5% to
30% and rebate of 3% of items with Import duty above 30%.
 Document for Receipt of USD for Goods upto USD 10,000.00 manufactured in Nepal
can be disclosed upto 6 months. If not disclosed within time, custom department shall
write the letter to concerned authority for action as per Foreign Currency (regularize)
Act, 2019.
 Exporter may export Nepalese Manufacture Products up to USD 10,000 on the basis of
Bank Guarantee, if unable to present Forex Receipt documents, at the time of export.
The exporter may release the bank guarantee within 6 months from the date of export
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after submitting documents related to receipt of forex against such export. If such bank
guarantee is not released within 6 months; the bank guarantee may be invoked by the
custom office.
 Concessional Custom duty on goods imported from SAARC Countries other than
goods listed under Section 19 & 20 of Annex 1 of the Finance Bill, 2077 through Letter of
Credit has further been reduced:-
Custom Duty Rate as on Poush 17, 2062Applicable Custom Duty

5% 5%
10% 6%
15% 7.25%
25% 9.50%
35% 11.25%
40% 11.25%
80% 11.25%
(Note: In case the Custom Duty Rate above is higher than the rate prescribed
under Annex 1 of the Finance Bill, 2079; the lower rate shall be applicable.)
 SAFTA Concession is as follows: Concessional Custom duty on goods

manufactured in SAARC Country, invoiced and imported from that particular
SAARC Country, along with SAFTA Certificate of Origin and for goods listed under
Section 21 of Annex 1 of the Finance Bill, 2077 through Letter of Credit has further
been reduced:-
Custom Duty Rate as on Kartik, 2062 Applicable Custom Duty
5% 5%
10% 9%
15% 14%
20% 18.50%
25% 22%
30% 27.50%
80% 30%
(Note: In case the Custom Duty Rate above is higher than the rate prescribed under
Annex 1 of the Finance Bill, 2077; the lower rate shall be applicable.)
 Industries export its goods through letter of credit or banking channel in convertible
foreign currency but not having Bonded House Facility, can import its raw materials,
sub raw materials & packing materials (if packing material is manufactured in Nepal)
by custom deposit facility. However, such facility is not available for liquor, cigarette,
and tobacco related manufacturing industries.
 New Vehicles or any Mode of Transportation can be imported from the Manufacturer
Company or Authorized Agent situated at manufacturing company’s country only.
Such Vehicles can only be imported by Authorized Dealers in Nepal. Non-compliance
of above this provision may lead to confiscation of such imported vehicles (Exception:
Fire Brigade).
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 Reconditioned, Used Vehicles / Mode of Transportation and Vehicles / Mode of

Transportation not meeting Nepal Vehicle Pollution Standard 2056 are prohibited to be
imported (Exception: Fire Brigade).
 Vehicle brought under cornet by tourist is not applicable for any customs for a period of
1 year from the date of first entry for either continuous or partly for 6 months.
 Other vehicles except cornet:
- Tractor : Rs 400/day
- Tractor with Trailor or Trailor Only: Rs 700/day
Tractor or trailor used for goods transport if returned empty within 48
hrs, no such charge will be applicable.
- Car, Jeep Van: Rs 500/day
- Bus/Mini Bus: Rs 500/day
- Motorbikes/Scooter: Rs 150/day
- Three-wheelers: Rs 400/day
- Trailor/Truck: Rs 1700/day
- Excavator, Dozer, Loader, Roller, Leveller, Crane (Except Fixed Crane),
Crane lorry used in the Construction for up to maximim period of one
year: Rs. 1500/day
- Baler or combined harvester with straw collector used for agriculture for
the maximum period of 3 months: Rs. 1700/day
LPG Transporting Bullets are allowed a time limit of 96 hours for no charge
Trailors with Containers are allowed a time limit of 72 hrs for no charge
PROVISIONS RELATED TO CINEMA THEATRE

(Anusuchi 4, Sec 12)
1) Film Development Fee @ 15% of ticket price on any international movie

2) Film Development Fee @ 20% of ticket price on any international movie if
displayed in a cabin
3) Daily Sales Register should be maintained and the details should be shared
every week with Film Development Board and respective Inland Revenue
Department for theatres inside Kathmandu Valley and with Inland Revenue
Department incase its available or Office of Attorney General for theatres
outside Kathmandu Valley.
4) Theatres generating E-Tickets should get itself registered with Central
Cinema Management.
5) Those who do-not register themselves as per point no. 4 above shall be liable
to pay penalty of 100% of the billing for the first time and 200% of the billing
from the second time.
6) FDF needs to be paid within 25th of the succeeding month with proper details
in the respective IRO or Office of Attorney General. If not paid within
stipulated time, 25% penalty shall arise. Detail of FDF should be shared with
Film Development Board within the same timeframe and it should also be
sent via Box Office System.
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7) If a theatre denies a display of cinema where it has actually displayed the

same, claims to have displayed Nepalese cinema where it has actually
displayed international cinema or claimed to have sold fewer tickets than
actual, following charges shall be entitled apart from FDF:
a) 100% of FDF if for the first time
b) 200% of FDF from the second time
8) Theatre shall be closed if the theatre doesn’t comply with point no. 4 or 5 for
more than 2 months. Applicable FDF and penalties shall be payable by the
theatre. NRS. 1,000.00 per report shall be charged as penalty for not providing
details every month.
9) If a theatre is closed by reason of Natural Calamity, Repair & Maintenance of
Equipment’s, or any other reason for 7 days or more, it need not pay FDF for
the period it was closed for. Same has to be approved from the respective
office as per ‘Prakaran 11’.
10) 50% discount is given for movies displayed for students discount on Saturday
at and on a Government Holiday at 8:00 am in FDF.
11) Any theatre can file a case to Revenue Tribunal incase not satisfied with any
judgement made under this Anusuchi.
12) Monitoring of FDF can also done by Film Development Board. It can also go
for site inspection and verification of data.
13) Theatre has to share detail of Ticket serial no., Name of Film, Display date 1
day before to IRD, TSO, Kosh Tatha Lekha Niyantran Office and should have
a copy of the same also.
14) 90% of FDF is to be deposited at Film Development Board & remaining 10%
to be spent on development of respective authority (who manages FDF) as
prescribed by IRD. Film Development Board cannot spent more than 25% of
receipt amount for administrative purpose.
15) Monitoring of FDF shall be done by IRO or Office of Attorney General.
Road Construction & Maintenance Fee (Anusuchi-3, Section -10):
 Road Construction & Maintenance Fee, levied at the time of registration of vehicle,
shall be levied as follows:
Items 2079/80
Microbus, Bus, Truck, Tripper, Truck Mixture, Mini Bus 7 % of Cost
& Mini Truck.
Car, Jeep & Van up to 2000cc 8% of Cost
Car, Jeep & Van above 2000cc 10% of Cost
Electric Car, Jeep & Van 5% of Cost
Electric Bus, Minibus, Microbus & item under 87.04 2.5% of Cost
Motorcycle:
Up to 125 CC Rs. 15,000 /Pc
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126 CC – 250 CC Rs. 18,000 /Pc

251 CC – 400 CC Rs. 50,000 /Pc
Above 400 CC Rs. 100,000 /Pc
Electric Motorcycle & Scooter Rs. 10,000 /Pc
Electric Three Wheeler Passenger and Transportation Vehicle Rs. 10,000 /Pc
Three Wheeler and Transportation Vehicle under 87.03 & 87.04 Rs. 15,000 /Pc
Other Vehicles under 87.02, 87.03 & 87.04 10% of Cost
Chassis under 87.06 9% of Cost
 However, the above shall not be applicable to diplomatic mission, person with
diplomatic facility, Scooter used by Disabled person upto 155 CC, Fire Truck,
ambulance, Dead-Body Carrying Vehicle and Special Vehicles under HS Code
87.05.
 40 seater or above capacity bus (minimum 5 Pcs) and its chassis imported by any
Co-operative society or company registered for passenger transportation shall be
fully exempt from Road Construction & Maintenance Fee.
 Vehicles used by Nepalese Army, Armed Police and Nepal Police working under
discretion of UN which are to be used temporarily as not to be registered in
Nepal shall be fully exempt from Road Construction & Maintenance Fee.
 Buses used in Airports for terminal transfers only shall be fully exempt from
Road Construction & Maintenance Fee.
 Vehicles imported on Diplomatic Subsidy, full or partial rebate, at 1% by facility
of Nepal Government or temporarily by bank guarantee shall attract the above
fee if wanting to convert it to normal imported vehicle if not paid earlier.
However, if the fee is paid earlier, same shall not be levied.
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BUDGET HIGHLIGHTS

Professional Advice to be sought before acting on any information contained

A. KEY BUDGET STATISTICS.............................................................................................3

A. KEY BUDGET STATISTICS

Statement of Budgeted Income & Expenses

(Amount in NPR. Billion)

Particulars F/Y 2079/80

Expected Economic Growth Rate for F/Y 2079/80: 5.80%

1. Health Risk Tax

2. Education Service Charge for study at Foreign (No Change)

3. Infrastructure Tax (No Change)

4. Road Construction & Improvement Fee (No Change)

5. Pollution Control Fee (No Change)

6. Telephone Ownership Charge (No Change)

7. Telecommunication Charge (No Change)

9. Provision Relating Social Security Tax (Section 17 of Finance Act, 2079):

10. Digital Service Tax (Section 20 of Finance Act, 2079)

12. Special Provision for Encouragement related to Transaction based on Information

 Person engaged in Transportation service can claim rent on transport vehicle as

22. Discount of 2%-15% on electricity will be provided to manufacturing industries

24. Interim Administration regarding Registration Charges of Land and Buildings

C. DIRECT TAXATION (INCOME TAX):

Particulars Tax Rate

Particulars Tax Rate

Particulars Tax Rate

registered in VAT or not and whether the natural person has

less than 5 Years)

Changes in Definition Section(2):

Further Deductions / Facilities for Resident Natural Persons:

Resident Disabled/Incapacitated person shall get an additional 50% of Exemption

Employees working in Nepalese Diplomatic Mission abroad are allowed 75%

Contribution in Approved Retirement Fund is deductible to the limit of 1/3 rd of

Individual having Pension Income, contributing on contribution based pension

Compensation received in respect of death of natural person is not taxable [Sec 31

Insurance premium of self owned house by a resident natural person shall be

Tax Credit for Resident Natural Persons:

Where Foreign Income is included in Taxable Income of a Resident Natural

 Tax Rates for Entities:

Particulars Tax Rate

Bank, Finance Company, General Insurance Company, Telecom and

Entities, Cigarette, Tobacco, Beer and Alcohol Company

Note: Trust of Dead or Incapacitated Person shall be taxed as natural Person.

 Tax Concessions & Rebate (Sec 11):

Income from firm, company, partnership or institution (Sec

Special Industries, already in operation, which enhances 25% of

Industries established in Special Economic Zone (SEZ) of

Income from Foreign Technology, Management Fee and

Person engaged in Mining Research & Extraction of

Industry related to Software Development, Data Processing,

if commercially starts generation, generation & distribution,

Profit on Export Income from Manufacturing Industry– For

Profit on Export Income from Manufacturing Industry– For

Entity engaged in Construction and Operation of Ropeway,

Entity engaged in Construction and Operation of Road, Bridge,

Listed entity engaged in Manufacturing, Tourism,

Industries manufacturing Brandy, Wine, Cider from fruits in

Royalty Income from the Export of Intellectual Property (Sec

Capitalization of Reserve and Surplus by a Special Industry,

Conversion of existing pvt ltd. Company with minimum