Payments in Indian Rupees by Tourist Transport Operator regarded as foreign exchange earned for the purpose of EO under EPCG Scheme – DGFT clarifies
DGFT has clarified that the following types of payments received in Indian Rupees by tourist transport operator will be considered for discharge of EO under EPCG Scheme in addition to the direct earning of Foreign Exchange:-
(a) Payment received from foreigners in Indian rupees against encashment certificate (Original to be enclosed).
(b) Payment received in Indian rupees from travel agents/tour operators; earned for use of services of tourist transport operator by foreign tourists (considered as foreign exchange under section 80HHD of Income Tax Act).
Travel agents/Tour Operators shall not be eligible to count such Foreign Exchange i.e , Foreign Exchange earnings disclaimed in favour of Tourist Transport Operator(Service Provider), against fulfilment of EO for their own EPCG Authorizations
(c) Payment received from foreign airlines in Indian rupees against their repatriable earnings.
(d) Payment received in Indian rupees, from diplomats, embassies, UN organisation out of their convertible foreign exchange
DGFT Policy Circular No. 21 (RE-08)/2004-09 Dated: July 17, 2008