My query is that can a Status Holder claim the benefit of 1% Status Holder Incentive on the export made to Nepal where invoicing was done in INR and amount was also realized in INR?
08 July 2013
In our case, the export item is eligible for claiming SHIS export incentive. But the only question is that can the benefit be claimed even if realization was received in INR and not in freely convertible currency?
On ANF-3E a note is mentioned indicating that documentary evidence of earnings in Indian Rupees which are otherwise considered as having been paid for in free foreign exchange by RBI should be produced.
Hence, I require the documentary evidence wherein RBI has allowed such benefit to support the claim.
09 July 2013
Status Holders shall be entitled to incentive scrip @1% of FOB value of exports.
As per para 2.40 of the Foreign Trade Policy,
All export contracts and invoices shall be denominated either in freely convertible currency or Indian rupees but export proceeds shall be realised in freely convertible currency.
However export proceeds against specific exports may also be realized in rupees provided it is through a freely convertible Vostro account of a non resident bank situated in any country other than a member country of ACU or Nepal or Bhutan. Additionally, rupee payment through Vostro account must be against payment in free foreign currency by buyer in his non-resident bank account. Free foreign exchange remitted by buyer to his non-resident bank (after deducting the bank service charges) on account of this transaction would be taken as export realization under export promotion schemes of FTP.
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