Served from India Scheme:- The following changes are made in the scheme.
The foreign exchange earned through international credit cards or other instruments as permitted by RBI for rendering of service by the service providers shall also be taken into account for the purposes of computation of duty credit entitlement.
Transfer of duty credit scrips shall be allowed within the service providers of the Group company as defined in Chapter 9 and managed hotels with actual user condition
The stand-alone restaurants will be entitled to duty credit equivalent to 10% of the foreign exchange earned by them in the preceding financial year as against 20% allowed earlier.
The imports against duty credit scrips shall relate to the service sector business of the applicant. Earlier, imports were relatable to the main line of business.
Utilisation of duty credit earned under the scheme shall not be permitted for payment of duty in case of import of vehicles.
Utilisation of duty free credit scrip earned under the scheme shall be permitted for payment of duty in case of import of capital goods under lease financing in terms of provision in para 2.25 of the Policy.
Other Changes
Two-Star Export Houses and above shall be permitted to establish Export Warehouses as approved by DOR.
In Para 3.6.1, payment for services received by service exporters in Indian Rupees which are otherwise considered as having been paid for in free foreign exchange by RBI has also been made eligible for service exports. Earlier, payment for services was to be received in free foreign exchange only.
Interest for delayed payment of refunds would be made by the Government to ensure accountability and cut down delays.
Board wants difficulties faced, if any, in implementation of the Circular to be brought to its notice early.
CIRCULAR NO. , Dated: May 9, 2006