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SFIS scheme provides duty credit scrips equivalent to 10 per cent. of foreign exchange earned during a year to service sector business from export of services with the avowed objective to accelerate growth in export of services The duty credit scrips can be used for offsetting tax liability while importing capital goods used for the purpose of business. Capital goods meaning spares, office equipment and professional equip ment, office furniture and consumables. 


It is for this reason that  the Tribunal in (2022] 100 ITR (Trib) 74 (ITAT[Del]) held that SFIS ( Served from India Scheme ) credit is not in the nature of income as the same only goes to reduce the cost of capital goods purchased by the assessee and the SFIS credit given to the assessee can be utilised only for payment of excise duty and customs duty on purchase of capital goods and therefore do not constitute taxable income of the assessee as per the sub-clause (xviii) of section 2(24) of the Income-tax Act 1961.

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