Exclusion of customer collected taxes from foreign earnings clarifies SFIS/SEIS duty credit must exclude such taxes for entitlement computation. Service provider entitlement under SFIS/SEIS is based on foreign exchange earned, and only remittances received as amounts in lieu of services rendered qualify. Customer paid State/Central taxes collected by the service provider on behalf of government-such as VAT, luxury tax, and service tax-are not earnings of the service provider and must be excluded from the base used to compute duty credit entitlement.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Exclusion of customer collected taxes from foreign earnings clarifies SFIS/SEIS duty credit must exclude such taxes for entitlement computation.
Service provider entitlement under SFIS/SEIS is based on foreign exchange earned, and only remittances received as amounts in lieu of services rendered qualify. Customer paid State/Central taxes collected by the service provider on behalf of government-such as VAT, luxury tax, and service tax-are not earnings of the service provider and must be excluded from the base used to compute duty credit entitlement.
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