Foreign Trade Policy 2015-20, SFIS

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Update: 01st  April 2015 – Click here to read Foreign Trade Policy of India 2015-20 (FTP 2015-20)  Foreign Trade Policy 2015-20.pdf

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SFIS, Any  amendments in new Foreign Trade Policy 2015-20?


Foreign Trade Policy 2014-2019The new Foreign Trade Policy 2015-20 is likely to be declared by end October, 2014.

Served From India Scheme SFIS is one of the reward schemes under Foreign Trade Policy. SFIS is provided to exporters on the basis of export of certain goods or services to certain specified countries. Served From India Scheme under Foreign Trade Policy is operationalized in September, 2009.

 

Under SFIS scheme, all Indian Service Providers who earns foreign exchange of Indian Rupees ten lakhs in current or preceding financial year is eligible. If the exporter is an individual, the limit of minimum foreign exchange earnings is Rupees five lakhs turn over of foreign exchange, either preceding year or current year. As per Foreign Trade Policy 2014-19, exporters are eager to know whether any changes in SFIS scheme as Foreign Trade Policy 2015-20 (FTP 2015-20)  is  being declared on 1st April, 2015.

As per SFIS scheme under Foreign Trade Policy 2015-20 (FTP 2015-20), 10% foreign exchange earnings are given as duty credit scrip to exporters on their achievement of foreign exchange. Does Foreign Trade Policy 2015-20 (FTP 2015-20)declares any amendments in present structure under SFIS scheme?

The duty credit scrip obtained by exporters under SFIS scheme can be used for import of any capital goods,spares, professional equipment, office equipment, office furniture and consumables. The duty credit scrip can also be used to import consumables including food items and alcoholic beverages, in case of hotels, clubs having residential facility of minimum 30 rooms, golf resorts and stand-alone restaurants having catering facilities. Are any changes in Foreign Trade Policy 2015-20 (FTP 2015-20)on these structures under SFIS scheme?

At present under SFIS scheme, the entitlement/goods (imported/procured) are subject to Actual User condition i.e. non-transferable (except within group company and managed hotels). 

Under Served From India Scheme, presently, the duty credit scrip is permitted to be utilized for procurement from domestic sources. Can any amendment be expected in new Foreign Trade Policy 2015-20 (FTP 2015-20)?

FTP 2014-19Would you like to share your experience about SFIS scheme under Foreign Trade Policy? Do you expect any amendment in Foreign Trade Policy 2015-20 (FTP 2015-20) on SFIS scheme.

Comment below your thoughts about this article - Foreign Trade Policy 2015-20 (FTP 2015-20), SFIS

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Update: 01st  April 2015 – Click here to read Foreign Trade Policy of India 2015-20 (FTP 2015-20)  Foreign Trade Policy 2015-20.pdf

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Comments


Amit Gupta: My company is a Private limited company registered in Indian companies Act, 1956 and engage in the business of hotels managed by foreign brand. Further company has foreign equity of more than 51%. Am I eligible for SFIS benefits. My understanding of subject is that All service provider having foreign exchange in India are eligible for the benefit and share holding/ foreign brand is not the condition. Kindly clarify.

HABEEB JAN: Notification No. 91/2009-Customs dated the 11.9.2009 Exemption notification for Served From India Scheme(SFIS) (i) in the case of hotel or stand alone restaurant or golf resort having catering facility, capital goods including spares, office equipment, professional equipment, office furniture, consumables, related to its service sector business and food items and alcoholic beverages but excluding other products classifiable in Chapters 1 to 24 of the First Schedule to the Customs Tariff Act, 1975 (51 of 1975) and items not permitted to be imported in terms of Appendix 37B of the Hand Book of Procedures, volume I; (ii) in the case of service provider other than hotel or stand alone restaurant or golf resort having catering facility, capital goods including spares, office equipment, professional equipment, office furniture and consumables, related to its service sector business, but excluding the items not permitted to be imported in terms of Appendix 37B of the Hand Book of Procedure ,volume I, when imported into India against a Served From India Scheme scrip (hereinafter referred to as the said scrip) issued under paragraph 3.12 of the Foreign Trade Policy, (1) the whole of the duty of customs leviable thereon under the First Schedule to the said Customs Tariff Act, 1975(51 of 1975) (2) the whole of the additional duty leviable thereon under section 3 of the said Customs Tariff Act, 1975 subject to the following conditions, namely : i. that the said scrip has been issued to a service provider by the Regional Authority and it is produced before the proper officer of customs at the time of clearance for debit of the duties leviable on the goods, but for this exemption ii. that the said scrip and goods imported against it shall not be transferred or sold Provided that transfer of goods or said scrip may be allowed subject to actual user condition within the group company or managed hotels as defined in paragraph 9.28 and paragraph 9.35 respectively of the Foreign Trade Policy, as the case may be iii. that in respect of capital goods, office equipment and professional equipment a certificate from jurisdictional Deputy Commissioner of Central Excise or Assistant Commissioner of Central Excise or an independent Chartered Engineer, as the case may be is produced confirming installation and use of the goods in the importers factory or premises, within six months from the date of imports or within such extended period as the Deputy Commissioner of Customs or Assistant Commissioner of Customs, as the case may be, may allow; iv. that the imports and exports are undertaken through Indian all seaports. Provided that the Commissioner of Customs may with in the jurisdiction, by special order, or by a Public Notice, and subject to such conditions , as may be specified by him permits import and export from any other seaport or airport or inland container depot or through any land customs station 2. Exemption under this notification shall not be available for import of vehicles even if such vehicles are freely importable under the Foreign Trade Policy Explanation .- For the purposes of this notification (i) Capital goods has the same meaning as assigned to it in paragraph 9.12 of the Foreign Trade Policy (ii) "Foreign Trade Policy" means the Foreign Trade Policy 2009-2014, published by the Government of India in the Ministry of Commerce and Industry vide notification No.1 /2009-2014, dated the 27th August, 2009 as amended from time to time; (iii) "Licensing Authority or Regional Authority" means the Director General of Foreign Trade appointed under section 6 of the Foreign Trade (Development and Regulation ) Act,1992 (22 of 1992) or an officer authorised by him to grant a licence under the said Act.

NAVIN JAIN: I have received an information recently through DGFT consultant that the SFIS license will not be issued to hotels managed by foreign brands, DGFT has restricted these benefits to managed hotels recently and many of the hotels have received Demand Notice for the previous license and duty benefits availed in past with 18% interest. Whether this info is right or wrong?

kumar: I am working as a consultant for a Singapore company which is planning to establish business in India. Initially i will be treated as consultant and a fixed amount paid as my remuneration on monthly basis, upon company formation in India, i will be part of the team for indian operation. Till such time i get employment what will be the tax component for my earnings siva kumar

NAVIN CHANDRA SHAILY: We have import a car in SFIS Scheme in the name of our company. Our company is running a five star hotel in National Capital Region, Delhi. Where should we registered the said vehicle. Should we registered in Burari authority or raj pur road authority.

Shekhar: While going through the article, a question came to my mind as to will this scheme be applicable to subsidiaries providing services to parent company? That is are the companies based in India, providing services to their parent company can get themselves registered under this scheme.

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