Sfis benefit

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

30 November 2011 Is SFIS (Served From India Scheme) Benefit available even on the Service Tax amount?

Normally export of services are exempt. But in case of transport of passengers by air service, Service tax is charged even on the services provided to passengers embarking out of India. i.e., all transport of passengers whether within India or outside (correct me if I'm wrong) are chargeable to Service tax.

So, in such case, can the SFIS Benefit be claimed on the total payments received in foreign exchange including the service tax?

RAMESH KUMAR VERMA

RAMESH KUMAR VERMA (Expert)
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30 November 2011 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 IN 2011-12

Querist : Anonymous

Querist : Anonymous (Querist)

30 November 2011 Thank you sir...

But I wanted to know whether is it the gross amount charged for the service which is eligible for SFIS benefit, or is it the amount which is inclusive of service tax.

RAMESH KUMAR VERMA

RAMESH KUMAR VERMA (Expert)
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30 November 2011 10.3% rate service charge by you.

and FTP 2009-2014 SAYS THE ABOVE SAID STATEMENT.

Querist : Anonymous

Querist : Anonymous (Querist)

30 November 2011 Transportation of Passengers by Air Service
(This service attracts service tax even in case of transport of passengers embarking out of India; i.e., export of service)

Here for Ex.,
Gross Amount charged : 10,00,000
Service Tax @ 10.3% : 1,03,000

Total amount Charged : 11,03,000

Now, is SFIS benefit available for Rs. 10,00,000 or Rs. 11,03,000?

Querist : Anonymous

Querist : Anonymous (Querist)