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

Under the Foreign Trade (Development and Regulation) Act, 1992, when is an Importer-Exporter Code Number necessary for import or export of services or technology?

For services or technology, an Importer-Exporter Code Number is needed only when the provider takes benefits under the foreign trade policy or deals with specified services or specified technologies, as per the proviso to Section 7 of the Act.

  1. AAlways, for every service provider irrespective of benefits claimed
  2. BOnly when the provider is taking benefits under the foreign trade policy or deals with specified services or specified technologiesCorrect
  3. COnly when the value of the service exceeds the threshold fixed by the Director General
  4. DNever, as the code applies only to import or export of goods

Explanation

Section 7 requires an IEC for any import or export, but the proviso limits the requirement for services or technology to cases where the provider takes benefits under the foreign trade policy or deals with specified services or technologies. Hence an unconditional requirement or a complete exemption is wrong.

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