|With the new Foreign Trade Policy, the Government of India has aimed to accelerate the growth in export of services so as to create a powerful and unique 'Served from India' brand. Objective of this scheme is to accelerate growth in export of services so as to create a powerful and unique ‘Served From India’ brand, instantly recognized and respected world over.
In light of the above, all Service providers who have a total foreign exchange earning or earning in Indian Rupees which are otherwise considered as having been paid for in free foreign exchange by RBI, of at least Rs.10 lakhs in the preceding or current financial year shall be eligible to qualify for duty credit scrip.
Duty credit entitlement may be used for import of any capital goods including spares, office equipment and professional equipment, office furniture and consumables, provided it is part of their main line of business All Indian Service Providers who have free foreign exchange earning of at least Rs. 10 Lakhs in preceding financial year / current financial year shall qualify for Duty Credit Scrip under SFIS.
For Individual Indian Service Providers, minimum free foreign exchange earnings would be Rs 5 Lakhs.
All Service Providers shall be entitled to Duty Credit Scrip equivalent to 10% of free foreign exchange earned during current financial year. Entitlement / goods (imported / procured) against SFIS scrip shall be non transferable (except within group company and managed hotels) and be subject to Actual User condition, Free foreign exchange earned through International Credit Cards and other instruments as permitted by RBI for rendering of service are also taken into account for computation of Duty Credit Scrip.Additionally, this Duty Credit Scrip can also be utilized for payment of excise duty for procurement of items, permitted by Department of Revenue (DoR), from domestic sources.