Service Providers

FTP provides benefits to service providers who plan to earn foreign exchange providing their services. The benefits are either at the stage of buying capital goods or even later after having provided the services. Service Providers like

Hotels,
Hospitals,
Tour Operators, Taxi Operators,
Construction Companies,
Logistics companies
Leasing Companies
Consultants: Management, Engineering etc.
Manpower suppliers
Others

can utilize the scheme to import/procure from domestic market at a substantially reduced costs.

They can avail of

To reduce their Capital Goods cost. This way they can import at only 3.15% duty instead of the normal total 28.64%. The EO can be fulfilled by Foreign Exchange Earnings through providing services, like that of Foreign Guests staying in the hotel, medical tourism etc.

Which gives them a value of 10% of the FE earned from export of services in the previous year in the form of duty credit script. In case of hotels and other service providers in tourism sector it is only 5%.

The Script can be used for duty free procurement of any Capital Goods or consumables related to any service sector business of the script holder, from International as well as domestic sources. In case of Hotels and Restaurants it can be used even for import of foods items and liquor.