Sale into DTA for Job Work as well as Waste Recovery in Movements to DTA from EOU not covered under 50% quota, Full movement allowed, Only GST to be Paid under para 6.08(a) of FTP

[DGFT Notification No. 10 /2015-2020 dated 7 June 2018]

Effect of this Notification: Sale in DTA in respect of certain services classified under Heading 9988 and 9989 under GST is continued to be covered under para 6. 08(a) of FTP.

Subject: Amendments in para 6.08(b) of Foreign Trade Policy 2015-20 -regd.

In exercise of powers conferred by Section 5 of FT(D&R) Act, 1992, read with Paragraph 1. 02 of the Foreign Trade Policy, 2015-20, as amended from time to time, the Central Government hereby makes following amendments in Foreign Trade Policy 2015-20:

1. Existing Para 6.08(b) reads as under:

For services, including software units, sale in DTA in any mode, including on line data communication, shall also be permissible up to 50% of FOB value of exports and /or 50% of foreign exchange earned, where payment of such services is received in foreign exchange.

2. Para 6.08(b) is amended to read as under:

For services, including software units, sale in DTA in any mode, including on line data communication, shall also be permissible up to 50% of FOB value of exports and /or 50% of foreign exchange earned, where payment of such services is received in foreign exchange. However, sale in DTA in respect of services classified under Chapter Heading 9988 and 9989 under GST, but covered in LOP/para 9.31 of FTP as manufacturing of goods, will continue to be covered under para 6.08(a) above. At the time of DTA clearance, applicable GST and compensation cess as per GST classification would apply.