Do retail companies are eligible to claim sales as deemed exports made inside their stores by accepting international credit cards. Do such sales qualify under Export promotion capital goods scheme (EPCG). Request someone to clarify.
regards
sundar
G Sundarrajan (C F O) (28 Points)
12 February 2009Do retail companies are eligible to claim sales as deemed exports made inside their stores by accepting international credit cards. Do such sales qualify under Export promotion capital goods scheme (EPCG). Request someone to clarify.
regards
sundar
Rajesh Kumar
(Advocate- Tax)
(7806 Points)
Replied 13 February 2009
No.
In fact these are not export of goods. In fact the goods may not have crossed boundary of the country. Say, for example a foreign citizen may buy something, and consume that in india. It does not become a export merely because payment has been made in foreign exchange. It is not export of goods.
Off course, such benefit has been extended by government to some sectors, notably tourism where export encentive, including EPCG is available based on receipt in foreign exchange. These benefits are not available to retail sector.
Landmark Judgments: Important Provisions of the EPF & ESI Act interpreted by the Honorable Supreme Court of India
CAclubindia
