Govt launches scheme to boost export services

Written by:
Subscribe to Oneindia News

New Delhi, Oct 31 (UNI) The Government today launched a scheme to boost growth in export of services to create a powerful and unique " Served From India" brand in the international market.

Under the scheme, providers of more than 100 services, including those related to professions, computer, education, health, communication, tourism, hospitality and cultural sectors, would be entitled for benefits under Duty Credit Scrip, Commerce and Industry Ministry said in a statement.

Service providers with foreign exchange earnings of at least Rs 10 lakh in a year ( Rs 5 lakh in case of an individual), can utilise 10 per cent of the earnings for import of any capital goods, including spares, office equipment and professional equipment, office furniture and consumables, provided it is part of their main line of businesses.

However, in case of hotels of one-star rating and above (including managed hotels) and heritage hotels approved by Tourism Department and other service providers in tourism industry registered with the Department, the entitlement will be 5 per cent of the export earnings in a preceding financial year. But entitlement for stand-alone restaurants has been pegged at 10 per cent.

Hotels and restaurants can utilise the duty credit entitlement for import of food items and alcoholic beverages, the statement added.

The benefit can be availed of with the grant of permission by regional offices of Directorate General of Foreign Trade (DGFT) spread across the country.

The Ministry has, however, also circulated a negative list when the benefit cannot be availed of by certain categories of service providers or in certain conditions.

Foreign exchange earned on equity or through debt participation, donations, receipts of repayment of loans, unrelated to rendering of service, would be ineligible.

Similarly foreign exchange remittances related to financial services sector, all types of foreign currency loans, issue of foreign equity through American depository receipts (ADRs) and global depository receipts(GDRs), foreign currency bonds, and sale of securities would also be not eligible for benefit under the scheme.

Labour remittances sent home by those in contract or regular employment abroad, too, are barred for benefit under the scheme, the statement added.


Please Wait while comments are loading...