Articles

I. OBJECTIVE

Government of India has introduced the Service Exports from India Scheme (SEIS) under the Foreign Trade Policy (FTP) - 2015-20, replacing the earlier scheme 'Served from India Scheme’ under Foreign Trade Policy, 2009-15.

• The service Exports from India Scheme has been introduced in 2015 and is valid for 5 years i.e., from 2015-2020
• These incentives are not given in the form of money but are given in the form of duty-free credit scrip.
• The duty credit scrips issued under SEIS scheme can be for payment of various taxes levied on goods and services. These scrips are also freely transferable and can also be easily sold to some other Assessee.

II. ELIGIBILITY CRITERIA FOR CLAIMING INCENTIVES UNDER SEIS SCHEME

Services Eligible

Only Services rendered in
Mode I: Cross Border Trade (Supply of services from India to any other country
Mode II: Consumption Abroad (Supply of a service from India to service consumers of any other country)

• To be eligible under this scheme, the service provider shall have minimum net free foreign exchange earnings of $ 15,000/- in the preceding Financial Year.
• For individual service providers and sole proprietorships such minimum net free foreign exchange earnings of $ 10,000/-in the preceding Financial year.
• To claim the incentives, the service providers is required to have an active IEC code at the time of rendering such services.

Services Not Eligible

Supply of a service through
Mode III: Commercial Presence (i.e., Supply of a service from India through Commercial presence in any other Country
Mode IV: Presence of Natural Persons in any other country- not eligible for reward under this scheme.

III. FOREIGN EXCHANGE WHICH IS NOT BE CONSIDERED FOR THE PURPOSE OF INCENTIVES

The following exchange remittances would not be considered as a part of Net Foreign Exchange earned for the purpose of claiming exemption under this scheme

1. Foreign Exchange remittances other than those earned for rendering of notified services would not be counted for entitlement.
2. Other sources of foreign exchange such as equity or debt participation, donations, receipts or repayment of loans etc. and any other inflow of foreign exchange, unrelated to rendering of services.

IV. PROCEDURE FOR FILING OF APPLICATION FOR CLAIMING INCENTIVES UNDER SEIS

1. An application for grant of duty credit scrip for eligible services shall be filed online for a financial year on an annual basis in ANF-3B using DSC
2. The last date for filing an application for claiming incentives for service exporters under this scheme is 12 months from the end of relevant Financial Year.
3. The applicant shall have the option to choose Jurisdictional Regional officer on the basis of corporate office / registered office/ Head office/ Branch office address endorsed on IEC for submitting applications.
4. This option for the determination of officer shall be exercised at the beginning of the Financial year.
5. Once the option is exercised, no change would be allowed for claims relating to that year.

V. PORT OF REGISTRATION UNDER SEIS

1. In case of scrip applied under SEIS, the applicant can choose any port as the port of registration and mention it in the application at the appropriate column.
2. The scrip would be issued with such port of registration.
3. Such duty credit scrip needs to be registered at the port of registration of duty credit, once registered at the EDI port for import and at any manual port under Telegraphic Release Advice (TRA) procedure.
4. In case the port of registration is a manual port, TRA shall be required for imports at any other port.

VI. OTHER RELEVANT POINTS FOR INCENTIVES UNDER THIS SCHEME

• Validity: These scrips are valid for a period of 24 months from the date of issue and must be valid on the date on which such actual debit of duty is made.
• Revalidation: Revalidation of such duty credit scrip is not permitted unless validity has expired while in the custody of Customs Authority/ RA.
• Splitting of Scrips: These scrips can be split if requested subject to maximum of Rs. 5,00,000/-Each and multiples thereof may also be issued, at the time of application. After issue of scrip in case of export through non-EDI ports.
• Attestation: Some of the annexures attached to ANF-3B is required to be signed by a chartered accountant /Cost accountant/ company secretary.

For more information like rates of  incentives under the scheme for sevice exporters and FAQ's, please go through the PDF available.