The Director-General of Foreign Trade (DGFT) notified the extension of the export obligation period of specified Advance and Export Promotion Capital Goods (EPCG) Authorisations.
Para 4.42(j) and Para 5.17(f) have been inserted in Chapter 4 and Chapter 5 respectively in Foreign Trade Procedure 2015-2020, to extend the period of Advance Authorisations (AA) and EPCG Authorisations till December 31, 2021, for the original or extended Export Obligation which is expiring during August 01, 2020, to July 31, 2021, without payment of composition fee. However, this extension is subject to 5% additional Export Obligation on the balance of original or extended Export Obligation.
“A limit of total entitlement under SEIS has been imposed for service exports rendered in the period April 1, 2019, to March 31, 2020, and capped at Rs 5 crore IEC (import-export code),” the DGFT said in a notification.
Further, it has been notified that the facility to claim benefits under SEIS on payments in Indian rupees would not be available for services rendered in 2019-20.
The deadline for submission of SEIS for 2019-20 will be December 31, 2021, and SEIS applications for 2019-20 will become time-barred after December 31 this year.
The option to avail of Export Obligation extension with payment of composition fees would remain available. Where Advance Authorisations Holder or EPCG Holder has already obtained Export Obligation extension upon payment of composition fee, the refund of composition fee will not be permitted.
“Another option to avail extension in Export Obligation period till 31.12.2021 in case of specified Advance Authorisations and EPCG Authorisations is provided without any composition fees subject to 5% additional export obligation on balance exports to be fulfilled. This is in addition to the EO extensions facility (upon payment of the composition fees) already provided in FTP/HBP,” the DGFT notified.
Subscribe Taxscan Premium to view the JudgmentSupport our journalism by subscribing to Taxscan AdFree. Follow us on Telegram for quick updates.
