| Date: |
09-10-2014 |
| Subject: |
Shipping industry wants DGFT to provide liberal benefits under SFIS |
NEW DELHI: Ahead of the new foreign trade policy 2014-19, the shipping sector wants the Directorate General of Foreign Trade to extend the benefits of the Served from India Scheme (SFIS) more liberally.
The shipping industry has managed to get less than a fifth of the total entitled benefits under the scheme between 2006-07 and 2012-13 because of "problems in the scheme".
The commerce ministry is expected to announce the foreign trade policy 2014-19 this month and is likely to provide greater incentive to service exports. SFIS, which kicked off in 2005, provides duty free import scrip to exporters of services from India.
Shipping companies have approached the DGFT to avail of the duty credit benefit on maritime transportation provided between two foreign countries. The companies calculate their entitlement as 10% of the total foreign exchange earnings.
"The idea behind this scheme was to build Brand India and what better than a ship carrying the national flag all around the international waters. The sector needs to be incentivised," a senior shipping industry executive said.
Besides, the companies also want the services offered in the oil and gas exploration sector to companies such as ONGC, GSPC be treated as export items since the earnings are in foreign exchange.
"Indian shipping companies have to go through an international bidding process to provide these services and in order to encourage the offshore companies SFIS benefit should be grant ed," a senior government official said. A note by the Indian National Ship owners Association (INSA) has also suggested amendment in the foreign trade policy to provide for adjustment of CENVAT credit paid through SFIS scrip with tax payable in the next stage.
Indian shipping companies have asked for inclusion of offshore oilfield marine logistics and drilling services to be specifically brought under the purview of this scheme.
Source : economictimes.indiatimes.com
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