Forex earnings on incoming ISD calls won’t get duty sops

Forex earnings on incoming ISD calls won’t get duty sops

New Delhi: Telecom firms earning foreign exchange on incoming overseas calls, Internet services and rentals from cable networks are not entitled to duty sops under an export promotion scheme, says the government.

Operators earning foreign exchange from international incoming calls, rentals from optic fibre cables in India and Internet services are not entitled to 10% duty credit under the ‘Served From India Scheme’, the Commerce Ministry has said.

The decision has been taken by the Directorate General of Foreign Trade (DGFT) on the pleas by Reliance Communications, Tata Teleservices, Bharti Airtel and Bharti Hexacom, official sources said. The telcos had asked the government to extend the SFIS benefit, stating they were earning foreign exchange for the country.

However, the DGFT ruled that the since the supply of the service is not a supply of service from India to any other country, “... such foreign exchange earnings are not entitled to SFIS benefits."

The objective of the SFIS is to accelerate growth in export of services to create the ‘Served From India’ brand.