SFIS Scheme-reg

[N Balachandran]

Sir,

When we execute the contract  for Supply ,  Fabrication and erection of Storage tank outside india, will it fall under category of Servce from India Scheme?.

The contract is lumpsum price and 80% of supply goes from out Side india. The fabrication and erection work  (15% of Contract value ) carried out  through the sub contractor who is also located outside india under the suprevision of Indian Engineers.

Pl clarify;

!. can we consider  this turnover as export turnover ?

2. Are we eligible for Incentive script under SFIS scheme? if so in which  category the contract has to be classified?.  Is it appropirate to say, Construction and Erection activity services?.

3. Are we eligbile for getting the Star Trading house Status as the contract value is more Rs.35 Crores

Regards

N.Balachandran

AI Summary

Contract's SFIS and Star Trading House Status Eligibility Questioned Due to High External Sourcing Percentage A query was raised regarding the eligibility of a contract for the Service from India Scheme (SFIS) and Star Trading House Status. The contract involves supplying, fabricating, and erecting a storage tank outside India, with 80% of supply sourced externally and 15% of work done by a foreign subcontractor under Indian supervision. The response indicated that due to the high percentage of external sourcing, the contract may not qualify as an export from India, affecting eligibility for SFIS benefits and Star Trading House Status. Only the remaining 5% of services might be eligible under SFIS if criteria are met.