SERVICE EXPORTERS: CLAIM YOUR INCENTIVE AS PER FOREIGN TRADE POLICY
Service Exports India Scheme is an incentive scheme as per the Foreign Trade Policy which aims at rewarding the service exporters.
ELIGIBILITY:
All the service providers as per the Appendix 3X notification No 29/2015-20 dated 23/9/2021 for the year 2019-20 and Appendix 3D/3E for other years.
PRE REQUISITE:
i. Valid IEC at the time of rendering the service
ii. Should have certain Minimum earnings
iii. Net foreign exchange earnings should be positive.
HOW DOES THE SCHEME WORK
Exporters can claim incentive ranging from 3 % to 5% of the net foreign earnings for 19-20 and for the year 18-19 incentive ranging from 5% to 7% on the net foreign earnings depending on the service rendered.
Application has to be made in the prescribed form to DGFT along with the supporting documents.
Scrips are issued for the value of the incentive.
It can be utilized for imports without payment of Customs duty or if there are no imports it can be monetized.
CAP ON THE VLAUE OF THE LICENCE
For the year 19-20 there is a cap on the value of the scrip issued is 5 Crores per IEC.
LAST DATE FOR THE APPLICATION
All the applications to be made before 31.12.2021. Notification 26/2015-20 dated 16/9/2021
SERVICES WHICH BECOME INELIGIBLE AS PER THE Notification No 29/2015-20 dated 23/9/2021
D – Business services – Professional services – * Management Consulting Services / * Services related to Management Consultancy & * Technical testing and analysis services
9 Transport services
A Maritime Transport services – * Support services for Maritime Transport
D services auxiliary to all modes of transport – * Cargo handling services
Documentation plays a very important role in claiming these incentives. With proper documentation and timely application, such benefits can be availed by all the service exporters as mentioned in Appendix 3X/3D. Since all the applications have to be made before 31.12.2021 it is necessary that the service exporters start collating their data and documents for filing their claim. For any clarification and guidance you may mail at rajeshwarisagar @yahoo.com
Author Bio
Hi, I am not able to utilize SEIS scrip for payment of import duty. Please guide.
Hi Shruthi, You can monetize your scrip if it is within the validity period.
If I am offering website designing service to a foreign national and receiving payment in foreign currency, shall I be entitled for export incentive under SEIS ?
If yes, how much ?
Please guide