To encourage the export in the country the Foreign Trade Policy- 2015-2020 has been introducing a Service Exports from India Scheme (SEIS) with effect from 1 April 2015.
This scheme provides benefits to ‘Service Providers located in India’ i.e. all service providers of notified services, who are providing services from India, rather than the profile or nature of service providers.
The Foreign Trade Department has proposed the reward rates as 3% and 5% of net foreign exchange earnings.
The SEIS scheme can be used for various purposes. This facility is available to any entity located in India.
SERVICE EXPORT FROM INDIA SCHEME (SEIS) RATE OF REWARD
The following services and rates of rewards were applicable for services export made between 1-4-2015 to 30-09-2015:
- Professional Services – 5% Rate of Reward
- Legal services
- Accounting, auditing, and bookkeeping services
- Taxation services
- Architectural services
- Engineering services
- Integrated engineering services
- Urban planning and landscape architectural services
- Medical and dental services
- Veterinary services
- Services provided by midwives, nurses, physiotherapists, and paramedical personnel
- Research and Development Services – 5% Rate of Reward
- R&D services on natural sciences
- R&D services on social sciences and humanities
- Interdisciplinary R&D services
- Rental/Leasing Services without Operators – 5% Rate of Reward
- Relating to ships
- Relating to aircraft
- Relating to other transport equipment
- Relating to other machinery and equipment
- Audiovisual Services – 5% Rate of Reward
- Motion picture and videotape production and distribution service
- Motion picture projection service
- Radio and television services
- Radio and television transmission services
- Sound recording
- Construction and Related Engineering Services – 5% Rate of Reward
- General construction work for building
- General construction work for civil engineering
- Installation and assembly work
- Building completion and finishing work
- Educational Services – 5% Rate of Reward
- Primary education services
- Secondary education services
- Higher education services
- Adult education
- Environmental Services – 5% Rate of Reward
- Sewage services
- Refuse disposal services
- Sanitation and similar services
- Health and Social Services – 5% Rate of Reward
- Hospital services
- Tourism and Travel Services – 3% or 5% Rate of Reward
- Hotel (3% Rate of Reward)
- Restaurants (3% Rate of Reward)
- Travel agencies and tour operators services (5% Rate of Reward)
- Tourist guides services (5% Rate of Reward)
- Recreational, Cultural and Sporting Services – 5% Rate of Reward
- Entertainment services (including theatre, live bands, and circus services)
- News agency services
- Libraries, archives, museums, and other cultural services
- Sporting and other recreational services
- Transport & Auxiliary Services – 5% Rate of Reward
- Passenger transportation
- Freight transportation
- Rental of vessels with crew
- Maintenance and repair of vessels
- Pushing and towing services
- Supporting services for maritime transport
- Rental of aircraft with crew
- Maintenance and repair of aircraft
- Airport Operations and ground handling
- Rental of commercial vehicles with an operator
- Maintenance and repair of road transport equipment
- Supporting services for road transport services
- Cargo-handling services
- Storage and warehouse services
- Freight transport agency services
- Other Business Services – 3% Rate of Reward
- Advertising services
- Market research and public opinion polling services
- Management consulting service
- Services related to management consulting
- Technical testing and analysis services
- Services incidental to agricultural, hunting and forestry
- Services incidental to fishing
- Services incidental to mining
- Services incidental to manufacturing
- Services incidental to energy distribution
- Placement and supply services of personnel
- Investigation and security
- Related scientific and technical consulting services
- Maintenance and repair of equipment (not including maritime vessels, aircraft or other transport equipment)
- Building-cleaning services
- Photographic services
- Packaging services
- Printing, publishing
PROCEDURE TO BE FOLLOW FOR CLAIMING INCENTIVE UNDER SEIS
1) The applicant is required to make an application in Form ANF3B by simply using digital signatures.
2) The last date to apply is within Twelve months from the end of the relevant financial year.
3) Applicant shall have the option to choose Jurisdictional Regional Officer for submitting applications.
4) It is required to note the option of choosing the officer at the beginning of the financial year.
BENEFITS FOR APPLYING TO SEIS SCHEME
1) SEIS duty scrip allows a service exporter to use it for the payment to custom duty for import.
2) These scrips are readily saleable also. If a person not importing or buying goods, the scrip can be sold.
3) Pay tax on services received from Indian service providers.
4) Also the person buys the SEIS scrip from the eligible person anyone who buys SEIS scrip from you can use it for the above-mentioned purposes.
5) These scrip cabs be split but subject to a minimum of INR Five Lakh and multiple thereof can be issued.
SEIS Scheme Eligibility:
1) Service Providers providing notified services, located in India are eligible for the SEIS.
2) A service provider may be a company or Partnership Firm or Limited Liability Partnership should have at least net foreign exchange earnings of $15000 in the previous financial year to be eligible for this scheme.
3) If any proprietorship or individual is a service provider, then net foreign exchange earnings required for the scheme is at least $10,000 in the preceding financial year.
4) An active Import Export Code (IE Code) is required to avail the scheme.
5) Only Services rendered from Cross Border Trade from India to any other country and Consumption abroad Supply of a ‘service’ from India to service consumer(s) of any other country only are eligible.
6) In Net Foreign Exchange calculation, any payments/receipts other than those relating to services not be considered.
7) Bank Statement indicating the foreign remittance.
8) Invoice Copy
Registration-cum-Membership Certificate (RCMC)
An exporter is required to get a Registration-cum-Membership Certificate (RCMC) from the Federation of Indian Export Organization (FIEO) for availing various benefits under the Foreign Trade Policy. RCMC is important for getting some of the important benefits from the Customs and Central Excise authorities.
Any exporter, who does not wish to obtain the RCMC and claim benefits under the Foreign Trade Policy, can still be enrolled as a member of FIEO under its Individual Exporter Category.
The annual membership subscription is under different categories as below:
Rs. 6,250/- *
Rs. 6,250/- *
Rs. 6,250/- *
Rs. 9,375/- *
One Star Export House
Rs. 9,375/- *
2 Star Export House
3 Star Export House
4 Star Export House
5 Star Export House
State Export Organization
INELIGIBLE CATEGORIES UNDER SEIS (Ref: Paragraph 3.09 OF THE FTP)
- Foreign exchange receipt other than those for the rendering of notified services would not be included in the entitlement.
- Foreign exchange earnings such as donations, receipts of repayment of loans, etc., and any other inflow of foreign exchange, unrelated to rendering of service, – not eligible for benefit under the Scheme.
- Following services is not included for calculation of entitlement under the scheme
(a) Foreign Exchange remittances:
I. Financial Service Sector
(i) Raising of foreign currency loans;
(ii) Realization of export proceeds of clients;
(iii) Issuance of Foreign Equity through ADRs / GDRs
(iv) Issuance of foreign currency Bonds;
(v) Sale relating to financial tools;
RISK MANAGEMENT SYSTEM TO CHECK AUTHENTICITY
1) There is a risk management system where every month the system in DGFT, randomly ten percent of scrips issued were selected. After that further information may be called upon selected cases.
2) If any discrepancies were found during any course of examination, then the required person is under obligation to make good of such discrepancy. The holder may surrender the scrip which over claims without interest.
3) The Regional Authority may also ask for further documents as proof in original for export.
4) If the applicant does not submit the document asked by the Regional Authority may be liable to refund the export reward with the interest.
5) It would be the responsibility of the applicant to maintain the records for the period of three years from the date of issuance of scrips.