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Date: 22-05-2018
Notification No: DGFT Policy Circular No. 06/2015-20
Issuing Authority: DGFT  
Type: Circular
File No: (Issued from File No.01/61/180/54/AMI7IPC-3)
Subject: Service Providers (and not Ports) are eligible for SFIS/SFIS benefit.

Government of India
Department of Commerce
Directorate General of Foreign Trade

Policy Circular No. 06 /2018

Date: 22nd May 2018

To

1. All Regional Authorities of DGFT

2. All Exporters/Members of Trade

This Directorate has received references from exporters providing portrelated services seeking clarification whether the actual service providersrendering the eligible services should be entitled for the SFIS/SEIS benefits orthe aggregator of services (Ports).

2. The issue has been examined in this Directorate in the light of theapplicable FTP Provisions and through inter-ministerial consultations as wellas opinion received from Ministry of Law and Justice.

3. It is clarified that the actual Service Providers (and not Ports) areeligible for SFIS/SEIS benefit in respect of their share of earnings made byperforming the notified services under SFIS/SEIS Scheme.

4. The aggregator of services (Ports) shall be entitled for benefits underSFIS/SEIS for services exclusively rendered by them and for which the foreignexchange earnings (or INR payments as allowed under the scheme) arereceived and retained by them on this account. The Ports cannot claim benefitsto the extent of free foreign exchange earnings (or INR payments as allowedunder the scheme) simply routed through them as receipt of service chargeswith regard to services rendered by other actual service providers.

5. It should be ensured that there is no double claim by the aggregator(port) and the actual service providers.

6. This issue with the approval of the Competent Authority

(Issued from File No.01/61/180/54/AMI7IPC-3)

LokeshHD
Joint Director General of Foreign Trade

       

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