Custom House Agents eligible for benefit under Served From India Scheme

By Vijay Kumar

DGFT clarifies that Service Providers like Customs House Agents, etc. shall be entitled for benefits under Served From India Scheme for the services exclusively rendered by them and for which the foreign exchange earnings are received and retained by them on this account.

However, such Service Providers cannot claim benefits to the extent of free foreign exchange simply routed through them for making payment for service charges with regard to services rendered by other service providers like Port Trust, Cargo Handlers, etc, who are also eligible for the Served From India Scheme benefits. Such remittances received in free foreign exchange by Service Providers like Customs House Agents, etc. cannot be treated as their service charges because the services are rendered by other Service Providers like Port Trust, Cargo Handlers, etc.

DGFT CIRCULAR NO. 19 (RE-2005)/2004-2009, Dated: August 5, 2005