22 August 2013
There is recent notification by DGFT dated 18th April 2013 wherein the SFIS benefits of 10% of free foreign exchange now will be calculated on the basis of net free foreign exchange earned (i.e., after deducting foreign exchange spent from the total foreign exchange earned during the financial year).
However it is not clear whether foreign exchange spent includes spent for imported materials also or services only? If company pays say royalty to any foreign company, will the same gets included in foreign exchange spent?
CAclubindia
