In the Foreign trade Policy 2015-2020, there are two scheme introduced for exports of Merchandise and Services respectively:
The objective of the scheme is to provide rewards to exporters to offset infrastructural inefficiencies and associated costs involved and to provide exports a level playing field. What is SEIS:
SEIS is Service Exports from India Scheme, the objective of scheme is to encourage exports of notified Services from India.
It is the modification SFIS scheme as given in the Foreign Trade Policy 2009-2014.
The SEIS Scheme shall come into force when the FTP 2015-2020 will notify. The FTP 2015-2020 via Notification No 01/2015-2020 dated April 01, 2015.
Rewards under SEIS:
Duty Credit Scripts (DCS) shall be granted as rewards under Service Exports from India Scheme (SEIS). The Duty Credit Scripts (DCS) and goods imported / domestically procured against them shall be freely transferable. DCS shall be given at the notified rates.
Utilisation of Duty Credit Scripts
1. Payments of Customs Duties for imports of inputs or goods
2. Payments of Excise Duties on domestic procurement of inputs or goods, including capital goods
3. Payment of Service Tax on procurement of services
4. For payment of Custom Duties in case of Export Obligation defaults. However, penalty/ interest need to be paid in cash.
5. Payment of composition fee under FTP, for payment of application fee under FTP.
The eligibility criteria are as follows:
1. Service provider who is providing ‘service’ from India to any other country.
2. Service provider who is providing ‘service’ from India to consumer of any other country.
3. Service provider who earn minimum amount of net free foreign exchange earnings, which are as follows
a. $ 10,000 – Individual service providers i.e. sole proprietorship
b. $ 15,000 – other than above entity
4. Payment in Indian Rupees for service charges earned on specified services, shall be treated as receipt in deemed foreign exchange as per guidelines of Reserve Bank of India. The list of such services is yet to be notified.
5. One must hold active IEC at the time of rendering services for which rewards are claimed.
6. Foreign Exchange earned for rendering of services other than the notified service will not be counted for entitlement. For E.g. equity or debt participation, donations, receipts of payments of loans, foreign exchange earned related to financial services sector like raising of foreign currency loan, etc.
7. Free foreign exchange earned through International Credit Cards and other instruments, as permitted by RBI shall also be considered for computation of value of exports.
CA Aditya Singh Rana- M. No.: 9827040315
DCS will be claimed by the service provider and not the service receiver.
I read your article. Its looks worthwhile for Exporters. I have a query. It may be due to lack of knowledge on account of CENVAT Credit provisions but your quick response is highly appreciated.
Query – Is it possible for an exporter to apply for Credit Scrip along with claiming Refund of CENVAT Credit. Meaning to say – Claim Refund of CENVAT Credit paid on Input Services used for Export of Services on one hand and apply for incentives available under FTP (SEIS) on the other hand?
CA Rohit Taneja