SFIS licence

[kartik sood]

Can SFIS licence be invalidated to a contractor ?? For eg, a company having a chain of restaurants has SFIS license worth 10 crores. This company is going for expansion and is building new restaurants. For its new restaurant it hires contractors to complete jobs like Electrical package, Plumbing package and other related jobs. According to SFIS scheme, the company who has SFIS license can buy indigenous goods without paying excise duty on the same by debiting the same against its SFIS license. Now as the work has been entrusted to a contractor, can the contractor buy material for the client against the SFIS licence of the client ??

AI Summary

Can Contractors Use Client's SFIS License for Material Purchases? Consult Chapter 3 of Foreign Trade Policy for Guidance. A company with an SFIS license, valued at 10 crores, is expanding its chain of restaurants and hiring contractors for tasks like electrical and plumbing work. The SFIS scheme allows the company to purchase indigenous goods without excise duty by using its license. The query asks whether contractors can purchase materials for the company using the client's SFIS license. The response suggests consulting Chapter 3 of the Foreign Trade Policy and the Handbook of Procedures for guidance on this matter.