Policy Circular No 21 (RE 08) 2004-09
Dated 17.7.2008
Payments received in Indian Rupees by Tourist Transport Operator - EPCG Scheme
Representations have been received regarding acceptance of
payment received in Indian rupees for discharge of export obligation under EPCG
scheme By Tourist Transport Operators.
2. The matter has been reexamined in light of Policy Circular No. 60/97-2002
dated 24.12.1998. The following types of payments received in Indian Rupees by
tourist transport operator will be considered for discharge of EO under EPCG
Scheme in addition to the direct earning of Foreign Exchange:-
(a) Payment received from foreigners in Indian rupees against encashment
certificate (Original to be enclosed).
(b) Payment received in Indian rupees from travel agents / tour operators;
earned for use of services of tourist transport operator by foreign tourists
(considered as foreign exchange under section 80HHD of Income Tax Act).
Travel agents / Tour Operators shall not be eligible to count such Foreign
Exchange i.e, Foreign Exchange earnings disclaimed in favour of Tourist
Transport Operator(Service Provider), against fulfillment of EO for their own
EPCG Authorizations
(c) Payment received from foreign airlines in Indian rupees against their
repatriable earnings.
(d) Payment received in Indian rupees, from diplomats, embassies, UN
organisation out of their convertible foreign exchange
3. This issues with the approval of DGFT.Sd/-
(G.Seetharam Reddy)
Jt.Director General of Foreign Trade
18/36/AM-08/EPCG-II
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