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Clarification regarding actual service providers rendering eligible services to be entitled for the SFIS/SEIS benefits or the aggregator of services (Ports)- (Ministry of Commerce and Industry) (22 May 2018)

MANU/DGFT/0076/2018

Commercial

1. This Directorate has received references from exporters providing port related services seeking clarification whether the actual service providers rendering the eligible services should be entitled for the SFIS/SEIS benefits or the aggregator of services (Ports).

2. The issue has been examined in this Directorate in the light of the applicable FTP Provisions and through inter-ministerial consultations as well as opinion received from Ministry of Law and Justice.

3. It is clarified that the actual Service Providers (and not Ports) are eligible for SFIS/SEIS benefit in respect of their share of earnings made by performing the notified services under SFIS/SEIS Scheme.

4. The aggregator of services (Ports) shall be entitled for benefits under SFIS/SEIS for services exclusively rendered by them and for which the foreign exchange earnings (or INR payments as allowed under the scheme) are received and retained by them on this account. The Ports cannot claim benefits to the extent of free foreign exchange earnings (or INR payments as allowed under the scheme) simply routed through them as receipt of service charges with regard to services rendered by other actual service providers.

5. It should be ensured that there is no double claim by the aggregator (Port) and the actual service providers.

6. This issue with the approval of the Competent Authority.

Tags : CLARIFICATION   ACTUAL SERVICE PROVIDERS   ELIGIBLE SERVICES   BENEFITS  

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