POLICY CIRCULAR NO. –21(RE-08)/2004-09

Last updated: 21 July 2008

18/36/AM-08/EPCG-II

DIRECTORATE GENERAL OF FOREIGN TRADE

GOVERNMENT OF INDIA

MINISTRY OF COMMERCE

POLICY CIRCULAR NO. –21(RE-08)/2004-09 DATED: 17.07.08

Subject:- Payments received in Indian Rupees by Tourist Transport Operator which would be regarded as foreign exchange earned for the purpose of EO under EPCG Scheme.

Representations have been received regarding acceptance of payment received in Indian rupees for discharge of export obligation under EPCG scheme By Tourist Transport Operators.

2. The matter has been reexamined in light of Policy Circular No. 60/97-2002 dated 24.12.1998. The following types of payments received in Indian Rupees by tourist transport operator will be considered for discharge of EO under EPCG Scheme in addition to the direct earning of Foreign Exchange:-

(a) Payment received from foreigners in Indian rupees against encashment certificate (Original to be enclosed).

(b) Payment received in Indian rupees from travel agents / tour operators;

earned for use of services of tourist transport operator by foreign

tourists (considered as foreign exchange under section 80HHD of

Income Tax Act).

Travel agents / Tour Operators shall not be eligible to count such Foreign Exchange i.e, Foreign Exchange earnings disclaimed in favour of Tourist Transport Operator(Service Provider), against fulfillment of EO for their own EPCG Authorizations

repatriable earnings.

(d) Payment received in Indian rupees, from diplomats, embassies, UN

organisation out of their convertible foreign exchange

3. This issues with the approval of DGFT.