Deduction of State /Central Taxes collected from the customers while calculating foreign earnings for SFIS/SEIS Schemes

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....ustoms Authorities/FIEO/EPCs/All Concerned Subject : Deduction of State /Central Taxes collected from the customers while calculating foreign earnings for SFIS/SEIS Schemes. The CAG audit team has during the audit of Served From India Scheme files observed that charges made on Accommodation, Services, Food etc. invariably include State/Central Taxes collected from the Customers such as VAT, Luxu....

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.... duty credit equivalent to 5% of the foreign exchange earned by them in the preceding financial year. Para 3.18 (i) of HBP 2004-09 further specifies that: Only such foreign exchange remittances as are earned as amounts in lieu of the services rendered by the Service Exporter would be counted for computation of the entitlement under this scheme. These provisions have been carried forward in Para....