FTP provides benefits to service providers who plan to
earn foreign exchange providing their services. The benefits are either at
the stage of buying capital goods or even later after having provided the
services. Service Providers like
Tour Operators, Taxi Operators,
Consultants: Management, Engineering etc.
can utilize the scheme to import/procure from domestic market at a
substantially reduced costs.
They can avail of
EPCG (EXPORT PROMOTION CAPITAL GOODS)
To reduce their Capital Goods cost. This way they can
import at NIL duty instead of the normal total 25.852%. The Export
Obligation can be
fulfilled by Foreign Exchange Earnings through providing services, like that
of Foreign Guests staying in the hotel, medical tourism etc.
SFIS (Served From India Scheme)
Which gives them a value of 10% of
the FE earned from export of services in the previous year in
the form of duty credit script. Hotels, travel agents, tour
operators or tour transport operators and companies
owning/operating golf resorts having SFIS scrip can import or
domestically procure motor cars, SUVs and all purpose vehicles
using SFIS scrips for payment of duties. Such vehicles need to
be registered for “tourist purpose” only.
The Script can be used for duty free procurement of any Capital Goods or
consumables related to any service sector business of the script holder,
from International as well as domestic sources. In case of Hotels and
Restaurants it can be used even for import of foods items and liquor.
WHAT WE DO
We can assist you in assessing the feasibility of the scheme for your
exports/domestic supplies, planning for maximum benefits, documentation,
application preparations, representation and coordination with DGFT and
other concerned Government Departments till you finally get the
In case of domestic procurement we can assist in getting necessary
invalidations from the authority, and the refund of Excise Duty.
Later we will assist you in redemptions of the Authorization.
We have also take matters of clarifications/relaxations etc. from the
DGFT committees regarding SFIS and EPCG..