TaxTMI 
TaxTMI 
TaxTMI 
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 ??
SFIS licence
Guest
SFIS licence: whether contractors may procure materials under a client's licence, guidance refers to trade policy procedures. The question is whether a contractor may procure indigenous materials duty-free by using a client's SFIS licence or whether the entitlement to buy exempted goods without excise payment is confined to the licence-holder. The recorded reply advises consulting the Foreign Trade Policy and the Handbook of Procedures for the SFIS scheme's rules on eligibility, permitted use and any authorised mechanisms for third-party utilisation of licence entitlements. (AI Summary)
