Deepak (CA) (424 Points)
12 May 2015Dear Freinds,
We are into restaurant business and certain Foreign Cards of Guest were swiped in our outlets.
We are now Importing Capital Goods for outlet.
We have a question that whether we can get concessional rate of duty on Imports of capital goods due to the Foreign Exchange earnings we generate through Foreign Cards of Guest.
Thanks !
RAMESH KUMAR VERMA
(Advocate )
(5965 Points)
Replied 13 May 2015
Refer to handbook or procedures 2015-2020 Para 2.52(a)
"Travel agents, tour operators, restaurants, and tourist transport operators and other units for tourism, like adventure/ wildlife and convention units, recognized by Director General of Tourism, Government of India, shall be entitled to import authorisation up to a value of 10% of foreign exchange earned by them during preceding licensing year, for import of essential goods which are restricted for imports related to travel and tourism industry, including office and other equipment required for their own professional use.
IN VIEW OF ABOVE YOU ARE ENTITLE FOR TAKING THE EPCG LICENCEFROM DGFT.
Ajit Hegde
(CA - Final)
(1367 Points)
Replied 21 May 2015
Agree with Ramesh Sir. You can go for EPCG license (Zero Duty) to save the duty upfront. And you will have to fulfill the export obligation associated with the license within a period of 6 years
CAclubindia
