Latest Expert Exchange Queries
sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
 
 
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Service Tax | Sales Tax | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Indirect Tax | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing
 
 
 
 
Popular Search: ACCOUNTING STANDARDS :: Central Excise rule to resale the machines to a new company :: articles on VAT and GST in India :: list of goods taxed at 4% :: VAT RATES :: due date for vat payment :: form 3cd :: empanelment :: ARTICLES ON INPUT TAX CREDIT IN VAT :: TAX RATES - GOODS TAXABLE @ 4% :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: cpt :: ACCOUNTING STANDARD :: VAT Audit :: TDS
 
 
« General »
 Tax breather for foreign investors: All you need to know
 What the increase in tax collections does not tell us about Indian economy post demonetisation
 India’s crazy retrospective tax on foreign funds will tarnish country’s reputation
 How tax related, PAN grievances can be resolved through E-Nivaran
 Tackling income tax exemptions for equities and agriculture
 Amfi wants tax benefits for retirement plans
 Top five factors which could chart market direction in the coming week
 Tax rate hikes boost shadow economy
 Tax mop-up may decline in new amnesty scheme
 Weeks before Budget, Finance Minister Arun Jaitley lists out benefit of low tax rates
 Second home loan tax benefits

Government may widen SFIS scope to enable exporters trade tax incentives
October, 09th 2014

The government is likely to expand the scope of Served from India Scheme (SFIS) by allowing exporters to trade the tax incentives earned by them in a bid to spur services exports.

The incentives are in the form of duty credit scrips that can be used to pay the customs duty on input imports of capital goods or consumables.

If the incentives are made tradable, exporters from sectors such as education, healthcare, healthcare, consultancy and real estate that do not import much will be able to sell them in

"We are trying to broaden the scope of SFIS. The issue is that most sectors are not able to utilise the scheme as there are many conditions attached. Therefore they should be allowed to sell it in the market. It will be a great relief for the exporters," said a government official.

The five-year foreign trade policy is set to be announced in the next two weeks, with the government likely to set an export target of $650-700 billion by 2019.

At present, duty credit scrips equivalent to 10 per cent of free foreign exchange earned are issued on actual user basis. "Mainly hotels and tour operators take advantage of the scheme right now. But what about the rest? Efforts are on from our side to allow exporters to give it to someone else," said the official, who did not wish to be named. The government will also make SFIS scrips adjustable against 12 per cent service tax, besides increasing the overall amount of the scheme.

India's services exports stand at about $145 billion, half of the merchandise exports of over $300 billion. The revenue outgo under SFIS was Rs 1,000 crore in 2013-14. Once the scrips become tradeable, the outgo will expand tremendously.

To avoid that, the government will limit the scheme to a few sectors. "The move will give a leg up to the services exports. Since the scheme can only be used for capital goods imports and consumables, it has a very limited scope," said Ajay Sahai, director general and CEO of the Federation of Indian Export Organisations (FIEO).

The government may also prune the existing promotional schemes for merchandise exports like 'focus products' and 'focus market', while giving a big push to branding initiatives. "We will be targeting only specific markets, which will improve India's competitiveness where it is required, resulting in higher shipments," said the official.

The share of exports to focus market countries in total exports rose from 6.72 per cent in 2009-10 to 8.32 per cent in 2012-13, as per a study by FIEO. India's share in China's imports fell from 1.02 per cent to 0.74 per cent between 2005 and 2012. However, the country's share in top importing nations of $100 billion and above grew marginally from 1.33 per cent to 1.49 per cent between 2009-10 and 2012-13, according to FIEO.

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2017 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Binarysoft Technologies - We Bring IT. Offshore software outsourcing company. We use Global Delivery Model (GDM) and believe in Follow The Sun principle

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions