SFIS for Earning in Current Year Only, Threshhold Dropped to Rs 5 Lakhs

[DGFT Notification No. 17 dated 18th January 2011]

Subject: Served From India Scheme (SFIS), Review thereof

In exercise of the powers conferred by Section 5 of the Foreign Trade (Development & Regulation) Act, 1992 (No.22 of 1992) as amended, read with Para 2.1 of the Foreign Trade Policy, 2009-2014, the Central Government hereby makes the following amendments, effective from 1st January 2011, in the Foreign Trade Policy 2009-14.

2. In the Para 3.12.2 of the Foreign Trade Policy 2009-14 (Updated as on 23.8.2010) the word ‘All’ and the phrase ‘preceding financial year /’ are being deleted; while the phrase ‘Appendix 10 of HBPv1’ is being replaced by the phrase ‘Appendix 41 of HBPv1’. Appendix 41 of HBPv1 is being notified today by Public Notice No. 25 (RE2010)/2009-14 Dated 18th January 2011. The amended Para would read as under:

“Eligibility

3.12.2

Indian Service Providers of services which are listed in Appendix 41 of HBP v1 and who have free foreign exchange earning of at least Rs. 10 Lakhs in current financial year will be eligible for Duty Credit Scrip. For Individual Indian Service Providers, minimum free foreign exchange earnings would be Rs 5 Lakhs.”

3. In the Para 3.12.4 of the Foreign Trade Policy 2009-14 (Updated as on 23.8.2010) the word ‘All’ is being replaced by the phrase ‘Such Eligible’. Eligibility would also be described. The amended Para would read as under:

“Entitlement

3.12.4

Service Providers of services listed in Appendix 41 of HBPv1 would alone be eligible. Such eligible Service Providers will be entitled to Duty Credit Scrip equivalent to 10% of free foreign exchange earned during current financial year.”

Effect of this Notification:

Earlier the benefits under SFIS were available to Services listed in Appendix 10 of HBPv1. Henceforth the benefits under SFIS will be available to Services listed in Appendix 41 of HBPv1.

Earlier the Eligibility for SFIS was based on Foreign Exchange earned in the current or previous year. Henceforth the Eligibility for SFIS will be based on Foreign Exchange earned in the current year only.