No sops on earnings from incoming ISD calls

Telecom firms earning foreign exchange on incoming overseas calls, Internet services and rentals from cable networks are not entitled to duty sops under an export promotion scheme, says the government.

Operators earning foreign exchange from international incoming calls, rentals from optic fibre cables in India and Internet services are not entitled to 10 per cent duty credit under the 'Served From India Scheme', the Commerce Ministry said.

The decision has been taken by the Directorate General of Foreign Trade (DGFT) on the pleas by Reliance Communications, Tata Services, Bharti Airtel and Bharti Hexacom, official sources said.

The telecom companies had asked the government to extend the SFIS benefit, stating they were earning foreign exchange for the country.

However, the DGFT ruled that the since the supply of the service is not a supply of service from India to any other country, "... such foreign exchange earnings are not entitled to SFIS benefits".

The objective of the SFIS is to accelerate growth in export of services to create the 'Served From India' brand.