Ineligible Remittances and Services

3.18.1

Foreign exchange remittances other than those that are earned for rendering of services would not be counted for entitlement.Thus, other sources of foreign exchange earnings such as equity or debt participation, donations, receipts of repayment of loans etc. and any other inflow of foreign exchange, unrelated to rendering of service, would be ineligible.For calculation of entitlement, following shall not be taken into account.

(a) Foreign Exchange remittances:

I. related to Financial Services Sector

1. Raising of all types of foreign currency Loans;

2. Export proceeds realization of clients;

3. Issuance of Foreign Equity through ADRs / GDRs or other similar instruments;

4. Issuance of foreign currency Bonds;

5. Sale of securities and other financial instruments;

6. Other receivables not connected with services rendered by financial institutions; and

II. earned through contract/regular employment abroad (e.g. labour remittances);

(b) Payments for services received from EEFC Account;

(c) Foreign exchange turnover by Healthcare Institutions like equity participation, donations etc. (However, remittances received on account of medical treatment, surgery, testing, consultancy and health care provided by the institution shall be eligible.);

(d) Foreign exchange turnover by Educational Institutions like equity participation, donations etc. (However remittances received on account of the course fees and consultancy provided by the institution shall be eligible.);

(e) Export turnover relating to services of units operating under SEZ / EOU / EHTP / STPI / BTP Schemes or supplies of services made to such units;

(f) Clubbing of turnover of services rendered by SEZ / EOU / EHTP / STPI / BTP units with turnover of DTA Service Providers; and

(g) Exports of Goods.