Deduction of State /Central Taxes collected from the customers while calculating foreign earnings for SFIS/SEIS Schemes

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..... , 2016 All Regional Authorities/All Customs Authorities/FIEO/EPCs/All Concerned Subject : Deduction of State /Central Taxes collected from the customers while calculating foreign earnings for SFIS/SEIS Schemes. The CAG audit team has during the audit of Served From India Scheme files observed that charges made on Accommodation, Services, Food etc. invariably include State/Central Taxes .....

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..... ector registered with the Department of Tourism, shall be entitled to duty credit equivalent to 5% of the foreign exchange earned by them in the preceding financial year. Para 3.18 (i) of HBP 2004-09 further specifies that: Only such foreign exchange remittances as are earned as amounts in lieu of the services rendered by the Service Exporter would be counted for computation of the ent .....

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..... n behalf of the Governments concerned. Hence, such taxes are not earnings of the service provider, as per the above provisions. 4. In light of the CAG observation, attention of all RAs, is drawn towards the above provisions for strict compliance and calculation of the entitlement only on the basis of receipt of foreign exchange earned by exporters, which does not include the taxes collected. .....

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