What are the rewards of the Service Exports from India Scheme (SEIS) under Foreign Trade Policy (FTP) 2015-20? The goods imported against the Duty Credit Scrips or the goods nationally acquired against the Duty Credit Scrips will be transferable freely. Given below is a list of requirements which can be fulfilled using the Duty Credit Scrips:
· Customs Duty payment and fee as per paragrap
h 3.18 of the policy.
· Customs Duties payment for importing goods or inputs, other than the items mentioned in Appendix 3A.
· Excise duties payment on the acquisition of goods or inputs, this includes capital goods according to the DoR notification.
· Service Tax payment upon acquisition of services according to the DoR notification. What is the eligibility criteria for Rewards under the Service Exports from India Scheme (SEIS)? The eligibility criteria for the Service Exports from India Scheme (SEIS) can be listed as follows:
· Service providers of notified services, located in India, eligible for reward under SEIS, subject to conditions as may be notified.
· Minimum net free foreign exchange earnings criterion prescribed is US$15000 in preceding financial year for eligibility under the Scheme.
· For individual service providers and sole proprietorship, such minimum net free foreign exchange earnings criterion prescribed is US$10000 in preceding financial year.
· As per the guidelines of the Reserve Bank of India (RBI), if payment for earned service charges in specified services is made in Indian Rupees (INR), the payment will be considered to be a receipt in deemed foreign exchange. Net Foreign Exchange earnings under this scheme is calculated as follows: Net Foreign Exchange:
(GROSS EARNINGS OF FOREIGN EXCHANGE MINUS TOTAL EXPENSES/PAYMENTS MINUS IEC HOLDER’S REMITTANCES OF FOREIGN EXCHANGE, WITH RESPECT TO THE SERVICE SECTOR IN THAT PARTICULAR FINANCIAL YEAR= NET FOREIGN EXCHANGE)
· In case the Importer Exporter Code (IEC) holder is engaged in manufacturing of goods and rendering services, then the foreign exchange earnings as well as net expenses, payments, and/or remittances of Foreign Exchange will be considered exclusively for the service sector.
· A service provider must hold a valid Importer Exporter Code (IEC) when rendering the services to claim the rewards under SEIS. Services and Rate of Reward 💥
Services eligible for reward under the scheme and rate of reward is as given in Table below. No
SECTORS
Admissible rate
1
BUSINESS SERVICES
A
PROFESSIONAL SERVICES
Legal services, Accounting, auditing and bookkeeping services, Taxation services, Architecture 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 personnel
5%
B
RESEARCH AND DEVELOPMENT SERVICES
R&D services on natural sciences, R&D services on social sciences and humanities, Interdisciplinary R&D services.
5%
C
RENTAL/LEASING SERVICES WITHOUT OPERATORS
Relating to ships, relating to aircraft, relating to other transport equipment, relating to other machinery and equipment
5%
D
OTHER BUSINESS SERVICES
Advertising services, market research and public opinion polling services Management consulting services, Services related to management
Consulting , Technical testing and analysis services, services incidental to agricultural, hunting band 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 and convention services.
3%
2
COMMUNICATION SERVICES
Audiovisual services
Motion pictures and video tape production and distribution service,
Motion picture projection service, radio and television services, radio and television transmission services, sound recording
5%
3
CONSTRUCTION AND RELATED ENGINEERING SERVICES
GENERAL Construction work for building, general Construction work for Civil Engineering, Installation and assembly work, Building completion and finishing work
5%
4
EDUCATIONAL SERVICES (Please refer note 10
Primary education services, secondary education services, Higher education services, Adult education
5%
5
ENVIRONMENTAL SERVICES
Sewage services, Refuse disposal services, Sanitation and similar services
5%
6
HEALTH- RELATED AND SOCIAL SERVICES
Hospital services
5%
7
TOURISM AND TRAVEL- RELATED SERVICES
A
Hotels and Restaurants (including catering)
3%
a
Hotel
3%
b
Restaurants (including catering)
3%
B
Travel agencies and tour operators services
5%
C
Tourist guides services
5%
8
RECREATIONAL, CULTURAL AND SPORTING SERVICES (other than audio visual services)
Entertainment services (including theatre, live bands and circus services), News agency m6 services, Libraries, archives, museums and other cultural services, sporting and other recreational services
5%
9
TRANSPORT SERVICES (please refer Note 2)
A
Maritime Transport Services Passenger transportation*, Freight transportation*, Rental of vessels with crew*, Maintenance and repair of vessels, Pushing and towing services, Supporting services for maritime transport
5%
B
AIR TRANSPORT SERVICES
Rental of aircraft with crew, Maintenance and repair of aircraft, Airport Operations and ground handling
5%
C
ROAD TRANSPORT SERVICES
Passenger transportation, Freight transportation, rental of commercial vehicles with operator, maintenance and repair of road transport equipment, supporting services for road transport services
5%
D
Services Auxiliary To All Modes Of Transport
Cargo-handling services, Storage and warehouse services, Freight transport agency services
5%
Note: (1) Under education services, SEIS shall not be available on Capitation fee. (2) *Operations from India by Indian Flag Carriers only are allowed under Maritime transport services. Remittances for Service Exports from India Scheme (SEIS) made through Credit Cards and the like:
The value of exports will be calculated after the consideration of the Free Foreign Exchange which is earned using international credit cards and the like, as per the permission granted by the Reserve Bank of India (RBI). What is the time limit granted for filing an application for Duty Credit Scrips? A time period of 12 months is granted for filing of an application in terms of obtaining Duty Credit Scrips. This 12-month period starts from the end of a relevant financial year of claim period. The application has to be filed online in Form ANF 3B on a yearly basis for a financial year. Digital signature is mandatory for form-filing. How long is a Duty Credit Scrip valid for? From the date of issuance, a Duty Credit Scrip is valid for a time period of 18 months. What is the effective date of scheme for Service Exports from India Scheme (SEIS)? The scheme will be considered to be effective beginning on the date on which the policy is notified. That also means that the rewards of the Service Exports from India Scheme (SEIS) will be applicable for all the eligible export services offered on or post the notification date of the policy. What are the provisions of the Service Exports from India Scheme (SEIS)? The provisions of the Service Exports from India Scheme (SEIS) can be classified into 2 broad categories. They are the special provisions and the common provisions.
