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

Under Section 7 of the FT(D&R) Act, 1992, when is an Importer-exporter Code Number necessary for import or export of services?

For import or export of services or technology, an IEC is needed only when the provider takes benefits under the foreign trade policy or deals with specified services or specified technologies. There is no value threshold, and it is not required for every service provider.

  1. AAlways, for every service provider
  2. BNever, for any service provider
  3. COnly when the service provider is taking benefits under the foreign trade policy or is dealing with specified services or specified technologiesCorrect
  4. DOnly when the service value exceeds Rs 10 lakh

Explanation

The proviso to Section 7 makes the IEC necessary for services or technology only where the provider takes benefits under the foreign trade policy or deals with specified services or technologies. No value threshold is stated, and goods trade still needs an IEC.

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