Export market development allowance covers intermediary service charges paid to facilitate exports, permitting weighted deduction under Section 35B. The Board clarifies that the difference in rates paid to STC as service charges qualifies as expenditure 'wholly and exclusively' for promotion of sales outside India and therefore falls within the scope of Section 35B weighted deduction. The exporter is treated as the actual supplier (with letter of credit and FOB consideration operating for the exporter), export incentives and duty drawback computed on gross bills, and the STC's market, promotional and contract-related services are activities qualifying for the weighted deduction.
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Provisions expressly mentioned in the judgment/order text.
Export market development allowance covers intermediary service charges paid to facilitate exports, permitting weighted deduction under Section 35B.
The Board clarifies that the difference in rates paid to STC as service charges qualifies as expenditure "wholly and exclusively" for promotion of sales outside India and therefore falls within the scope of Section 35B weighted deduction. The exporter is treated as the actual supplier (with letter of credit and FOB consideration operating for the exporter), export incentives and duty drawback computed on gross bills, and the STC's market, promotional and contract-related services are activities qualifying for the weighted deduction.
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