Net Foreign Exchange (NFE) Earnings

6.10.4

For annual calculation of NFE, value of imported capital goods and lumpsum payment of foreign technical know-how fee shall be amortized as under:

1st-10th year 10%.

Provided that above amortization rates would be applicable only if an undertaking is given by an unit that it will not exit to DTA in the first 10 years. For existing units, proportionate Customs and excise duty must be paid where NFE is less than depreciation already claimed, before exit.