Cash Payments Eligible for fulfilment of EO by Service Providers under EPCG Scheme/SFIS Scrips
REGIONAL Authorities and Service providers have sought clarifications for issuance of EPCG Authorization in cases where the service provider receives foreign exchange in cash from foreign consumers in India, for the purpose of fulfilment of EO under EPCG scheme/ as well as for eligibility for SFIS scrips .
DGFT examined the issue and clarified that EPCG scheme is eligible for all service providers as listed in Appendix 10 of HBP Vol. I. Further, in terms of RBI guidelines, for services rendered by the service provider, the foreign consumers (including NRIs) are permitted to make payment in cash (i.e. in foreign currency notes) over the counter to the service provider, as per limits prescribed by RBI. Such service providers earning foreign exchange by receipt of foreign currency in cash from their customers would be entitled to count such payments received in foreign currency notes towards export obligation of EPCG. Such earnings of foreign exchange shall also be entitled for SFIS scheme. In such cases, as per the RBI rules, the service provider surrenders the foreign currency notes to Authorized Persons (APs , including the APs ' franchises).
However, for claiming benefit of such foreign exchange received in cash by the service provider under the EPCG or SFIS scheme, the service provider must maintain a separate register containing the foreign consumer's details, like Name, Passport Number, date and amount of foreign exchange received in cash.
DGFT Circular No. 27/2009-2014, Dated: March 25, 2010