Service Providers of notified services, located in India, shall be rewarded under SEIS, subject to conditions as may be notified. Only Services rendered in the manner as per Para 9.51(i) and Para 9.51(ii) of the Foreign Trade Policy 2015-20 shall be eligible.
Such service provider should have minimum net free foreign exchange earnings of US$15,000 in the year of rendering the services 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 financial year when the services have been rendered.
Only the notified services listed in Appendix 3D are eligible for the benefits.
The rates of rewards for each of the notified services are listed in Appendix 3D.
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.
In order to claim reward under the scheme, Service provider shall have to have an active IEC at the time of rendering such services for which rewards are claimed.
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.
Foreign exchange remittances other than those earned for rendering of notified services would not be counted for entitlement. Thus, other sources of foreign exchange earnings such as equity or debt participation, donations, receipts of repayment of loans etc. and any other inflow of foreign exchange, unrelated to rendering of service, would be ineligible. Following shall not be taken into account for calculation of entitlement under the scheme
- Foreign Exchange remittances
- Related to Financial Services Sector
- Raising of all types of foreign currency Loans
- Export proceeds realization of clients
- Issuance of Foreign Equity through ADRs / GDRs or other similar instruments
- Issuance of foreign currency Bonds
- Sale of securities and other financial instruments
- Other receivables not connected with services rendered by financial institutions
- Earned through contract/regular employment abroad (e.g. labour remittances
- Payments for services received from EEFC Account
- Foreign exchange turnover by Healthcare Institutions like equity participation, donations etc
- Foreign exchange turnover by Educational Institutions like equity participation, donations etc
- Export turnover relating to services of units operating under SEZ / EOU / EHTP / STPI / BTP Schemes or supplies of services made to such units
- Clubbing of turnover of services rendered by SEZ / EOU /EHTP / STPI / BTP units with turnover of DTA Service Providers
- Exports of Goods
- Foreign Exchange earnings for services provided by Airlines, Shipping lines service providers plying from any foreign country X to any foreign country Y routes not touching India at all
- Service providers in Telecom Sector
The rewards under SEIS shall be admissible for export of services rendered on or after 01.04.2015, i.e. the date of notification of the Foreign Trade Policy 2015-20
Duty Credit Scrips shall be granted as rewards under Service Exports from India Scheme (SEIS). The Duty Credit Scrips and goods imported against them shall be freely transferable. The Duty Credit Scrips can be used for:
- Payment of Basic Customs Duty and Additional Customs Duty specified under sections 3 (1), 3(3) and 3(5) of the Customs Tariff Act, 1975 for import of inputs or goods, including capital goods, as per DoR Notification, except items listed in Appendix 3A.
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
An Online Application needs to be filed on the DGFT Server and the relevant fields of information need to be entered in the SEIS ECOM Module.
You may kindly refer Para 3.06 of the Handbook of Procedures 2015-2020 to know your applicable jurisdiction.
As per para 9.10 of the Handbook of Procedures 2015-20, the Schemes under Chapter 3 should be disposed of in 3 Working Days. However, in case there are any deficiencies / discrepancies in the file then the process may take longer.
Kindly refer Para 9.02 which clarifies whether that SEIS Application for previous years can be filed, subject to certain limitations and late cut applicability.
The SEIS Application can be filed on an Annual Basis only, which means for each FY only One Application can be filed.
The ANF 3B form seeks “Service Category information” from the Exporter. Therefore the Exporter needs to classify the eligible services as per Appendix 3D and claim the incentive accordingly.
The SEIS incentives will be issued only on the amount which has been realized against the Services Rendered.
If you are a service provider and want to avail SEIS incentives, then SEPC RCMC is compulsory. If you are manufacturer and a service provider, then RCMC from the relevant export promotion council needs to be availed, which is connected to your main line of business. As per Public Notice No. 26/2015-2020 dated 01.08.2018 issued by Directorate General of Foreign Trade, Department of Commerce to add an “Others” category in list of 14 service sectors of SEPC
Duty Credit Scrips issued on or after 01.01.2016 under chapter-3 shall be valid for a period of 24 months from the date of issue and must be valid on the date on which actual debit of duty is made. (Public Notice No. 33/2015-2020 dated 23.10.2017)