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
Hotels,
Hospitals,
Tour Operators, Taxi Operators,
Construction Companies,
Logistics companies
Leasing Companies
Consultants: Management, Engineering etc.
Manpower suppliers
Others
can utilize the scheme to import/procure from domestic market at a
substantially reduced costs.
They can avail of
To reduce their Capital Goods cost. This way they can
import at only 3.15% duty instead of the normal total 21.523%. 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.
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.
In case of hotels and other service providers in tourism sector it is only
5%.
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
Authorisation.
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..
