Analysis of Service Export from India Scheme (SEIS) for Services Exporter Foreign Trade Policy
In order to encourage exports, the government provides certain benefits in the form of Incentives, etc. to exporters.
One such Incentive scheme is SEIS, which is relevant for Service Exporters.
Under this scheme service exporters receives certain percentage of Net Foreign Exchange Earned in the form of duty free credit scrip.
Eligibility for Claiming Incentive:
1. Supply of Services in following modes are only eligible for Incentive:
- Supply of Services from India to any other country
- Supply of Services from India to service consumers of any other country.
2. For claiming benefit of this scheme the exporter shall have minimum of USD 15,000 as Net Foreign Exchange Earned, whereas this limit is of USD 10,000 if the service exporter is Sole proprietor.
3. The Service Exporters shall have an active IEC code at the time of rendering the services.
Note : Foreign Exchange earned for rendering notified services only are taken into account for SEIS Incentives.
Note: Remittances earned for issue of equity shares, debt securities, donations, etc. are not eligible for SEIS Incentives.
Procedure of filing for SEIS Incentives:
- Form ANF 3B shall be filed on annual basis for a financial year.
- Last date to file the application is 12 months from the end of relevant financial year.
- The applicant choose any port as the port of registration and mention it in the application at the appropriate column, scrips would be issued with such port of registration.
- The applicant shall have an option to choose jurisdictional Regional officer on the basis of address as mentioned in IEC application.
Incentive Rates:
a. Research and Development Services @5%
b. Rental/ leasing services @5%
c. Professional Service @5%
d. Audiovisual Services@5%
e. Construction and related engineering services @5%
f. Educational Services @5%
g. Environmental Services@5%
h. Health and Social Services@5%
i. Tourism/ Travel @ 5% / 3%
j. Recreational/ cultural and sporting services @5%
k. Transport and auxiliary services @5%
l. Other business and consultancy services 3%
The duty Scrips issued under SEIS Scheme are freely transferable and can be used for payment of various taxes levied on goods and services. These scrips are valid for 18 months from the date of Issue.
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