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CMA Final · Indirect Tax Laws and Practice · Export Promotion Schemes under Foreign Trade Policy

Meera Software Pvt Ltd exports software services and claims no benefit under the foreign trade policy, nor does it deal in specified services or specified technologies. As per Section 7 of the FT(D&R) Act, 1992, is an Importer-exporter Code Number necessary for its service exports?

No IEC is needed in this case. The proviso to Section 7 makes the Importer-exporter Code Number necessary for services or technology only when the provider takes foreign trade policy benefits or deals with specified services or technologies, and Meera does neither.

  1. AYes, in every case of service export
  2. BYes, if the value of services exceeds Rs 10 lakh
  3. CNo, since it is necessary only when taking policy benefits or dealing with specified services or technologiesCorrect
  4. DNo, since services never need IEC under any circumstances

Explanation

The proviso to Section 7 says that for import or export of services or technology, the IEC is necessary only when the provider takes benefits under the foreign trade policy or deals with specified services or technologies. Neither condition applies here. Option 4 is too absolute because IEC is required when those conditions apply.

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