Service Providers

FTP provides benefits to service providers who earn foreign exchange while providing their services. The benefits are either for the past services provided or for future when the equipment are being procured. Service Providers like

  • Hotels,
  • Tour Operators, Taxi Operators,
  • Construction Companies,
  • Logistics companies
  • Leasing Companies
  • Consultants: Management, Engineering etc.
  • Manpower suppliers
  • Others

can utilize the schemes to

  1. Get the duty credit scripts.
  2. import/procure from domestic market at a substantially reduced costs.

They can avail of:

SEIS (Service Export from India Scheme)

Gives a value of 3-5% of the FE earned from export of services from India in the form of duty credit script. This scheme is effective from 01.04.2015 and would be available on annual basis.

The Script can be used for payment of Basic Customs Duty, wherever applicable or can be transferred to other importers. There are certain terms and conditions attached to this schemes which needs to be taken care of on the basis of exporter profile prior to export.

EPCG (Export Promotion Capital Goods)

To reduce their Capital Goods cost. This way they can save the Basic Customs Duty on import. The Export Obligation can be fulfilled by Foreign Exchange Earnings through providing services, like that of Foreign Guests staying in the hotel, medical tourism etc.

SFIS (Served from India Scheme) (only for services exported till 31st March 2015)

Which gives them a value of 10% of the FE earned from export of services in the previous year in the form of duty credit script. Hotels, travel agents, tour operators or tour transport operators and companies owning/operating golf resorts having SFIS scrip can import or domestically procure motor cars, SUVs and all purpose vehicles using SFIS scrips for payment of Basic Customs Duty, Additional Customs Duty specified under Section 3(1), 3(3) and 3(5) of the Customs Tariff Act, Education Cess, Anti-Dumping Duty, Safeguard Duty and Transition Product Specific Safeguard Duty wherever applicable. Such vehicles need to be registered for tourist purpose only.

The Script can be used for the payment of Basic Customs Duty for procuring any Capital Goods or consumables related to any service sector business of the script holder, from International as well as domestic sources. In case of Hotels and Restaurants it can be used even for import of foods items and liquor.

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