Grant of benefits under Served From India Scheme (SFIS) – DGFT Clarifies
As per para 5.4 (v) of EPCG Scheme - FTP RE2007, “Foreign exchange counted towards fulfilment of EO (over and above the average) shall not be eligible for incentives / rewards under promotional measures / schemes”.
This clause has been deleted in FTP RE2008.
DGFT now clarifies that so far as Service Providers are concerned, Para 5.4(v) of FTP RE2007 applies to foreign exchange earned during 1.4.2007 till 31.3.2008 and does not apply to foreign exchange earned prior to 1.4.2007 or after 31.3.2008. Service Providers have to first utilize foreign exchange earned during 1.4.2007 till 31.3.2008 for fulfilment of pending EO under EPCG Authorisations (over and above the average, if any) and SFIS would be entitled only on any additional foreign exchange earned during 1.4.2007 till 31.3.2008 thereafter.
So now the DGFT wants RAs to undertake a special drive to cross check and if excess benefit had been granted, to recover it.
Similar Clarification has been issued in respect of export of goods also.
DGFT Policy Circular No 15 and Dated: July 4, 2008