Service Exports from India Scheme-Know How Can Avail Benefit Under It

In order to encourage export of services, Indian government notified Service Exports from India Scheme commonly referred to as SEIS scheme. This is as per Foreign Trade Policy 2015-2020

Some of the features of this scheme are:

1. Service providers located in India, providing services notified are eligible for this scheme

Some of the services covered under this scheme are Business Services, Research and Development Services, Rental/Leasing services without operators, communication services, construction and related engineering services, educational services, environmental services, health-related and social services, tourism and travel-related services, recreational, cultural and sporting services, transport services. For more details refer appendix 3d of Foreign Trade Policy. You click here to get the details.

2. The above mentioned services are eligible for reward as provided in Appendix 3d
3. The following type of services mode will be eligible under this scheme

(i ) Supply of a ‘service’ from India to any other country; (Mode1- Cross border trade)

(ii) Supply of a ‘service’ from India to service consumer(s) of any other country; (Mode 2- Consumption abroad)

4. For a service provider to be eligible under this scheme, it should have minimum net free foreign exchange earnings of US$15,000 in preceding financial year to be eligible for Duty Credit Scrip. For Individual Service Providers and sole proprietorship, such minimum net free foreign exchange earnings criteria would be US$10,000 in preceding financial year.
5. 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 indicated in Appendix 3E. You can click here to get the details
6. Net Foreign exchange earnings for the scheme are defined as under: Net Foreign Exchange = Gross Earnings of Foreign Exchange minus Total expenses / payment / remittances of Foreign Exchange by the IEC holder, relating to service sector in the Financial year.

If the IEC holder is a manufacturer of goods as well as service provider, then the foreign exchange earnings and Total expenses / payment / remittances shall be taken into account for service sector only

7. The service provider to claim the reward under the scheme, should have an active IEC at the time of rendering such services for which rewards to be claimed.

How the Duty Credit Scrips Can be Utilized

Duty Credit Scrips shall be granted as rewards under SEIS scheme.  The Duty Credit Scrips can be used for:

1. Payment of Customs Duties for import of inputs or goods, except items listed in Appendix 3A.
2. Payment of excise duties on domestic procurement of inputs or goods, including capital goods as per DoR notification.
3. Payment of service tax on procurement of services as per DoR notification. 58
4. Payment of Customs Duty and fee as per paragraph 3.18 of Foreign Trade Policy

Procedure aspects to be taken care while applying for awards under SEIS scheme.

1.An application for grant of duty credit scrip for eligible services rendered shall be filed online for a financial year on annual basis in ANF 3B using digital signature.  Please click here to download the form. The ANF 3B form can be filed online at http://dgft.gov.in/

2. RA shall process the application received online after due scrutiny

3.The application the last date for filing application shall be 12 months from the end of relevant financial year of claim period.