DGFT Policy Circular No. 03/2004-2009   Dated: 6^th October, 2004

To

          All Licensing Authorities

All Commissioners of Customs.

Sub:-  Remittances to be counted for the Served from India Scheme.

1.       It is clarified that the benefit of duty credit under Served from India Scheme will be available only to those remittances which are received as service charges and fee levied for the specific services rendered by the applicant.  For example for the financial services sector the following indicative list of foreign exchange remittance would not be counted for entitlement under the Scheme:

i)                   Raising of all types of foreign currency loans,

ii)                 Export proceed realization of clients,

iii)               Issuance of foreign equity through ADRs/GDRs or similar such instruments,

iv)               Issuance of foreign currency bonds,

v)                 Sale of securities and other financial instruments,

vi)               Other receivables not connected with the services rendered by the financial institutions.

2.       Duty credit under the Scheme will not be available on the remittances earned through contract/regular employment abroad (e.g. labour remittances).

          This issues with the approval of Director General of Foreign Trade.

( Ajay Srivastava )

Joint Director General of Foreign Trade

(F.No. 01/94/180/11/AM05/PC IV)