SERVICE EXPORTS FROM INDIA SCHEME
Government of India has introduced the Service Exports from India Scheme (SEIS) under the Foreign Trade Policy (FTP) – 2015-20 by replacing the previous scheme ‘Served from India Scheme’ under FTP 2009-15. SEIS or Service Export from India Scheme is reward-based initiative from the government, which aims to elevate the export of certain notified services and eventually boost the economy and make our services globally competitive in terms of cost. Under the scheme, service providers who located in India, get rewarded under the SEIS scheme, for all eligible export of services from India.
SEIS Scheme Eligibility
To be eligible,
- A service provider (Company / LLP / Partnership Firm) – should have a minimum net free foreign exchange earnings of $15,000 in the year of rendering the services.
- For sole proprietorship or individual service providers – a minimum net foreign exchange earnings of $10,000 in financial year when the services have been rendered.
Also, to claim reward under the SEIS scheme, the service provider should have an active IE Code (Import Export Code) at the time of rendering. Once the service provider fulfils the above eligibility conditions, he/she can claim the benefits of SEIS in the form of Duty Credit Scrips (only for those services which are listed in Appendix 3D).
NOTE – Net foreign exchange earnings for the SEIS scheme is calculated as:
Net Foreign Exchange = Gross Earnings of Foreign Exchange – Total Expenses / payment /remittances of Foreign Exchange.
Notified Services under SEIS
Notified Services under SEIS
The various services eligible to claim benefits under the SEIS, as enlisted in Appendix 3D of the Foreign Trade Policy, 2015-20, are as follows:
Business Services | |
Professional services |
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Research and development services |
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Rental/Leasing services without operators |
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Other business services eligible |
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Communication Services | |
Audio-visual services |
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Construction and related engineering services |
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Educational Services (SEIS benefits not available to Capitation fee) |
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Environmental Services |
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Health-related and Social Services |
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Tourism and Travel-related Services |
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Transport services | (Operations from India by Indian Flag Carriers only is allowed under Maritime transport services)
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Air transport services |
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Road Transport Services |
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Services Auxiliary to All Modes of Transport |
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Ineligible categories under the SEIS Scheme
- All the remittances received for giving Services that are not a part of appendix 3D, will not be considered for benefit.
- This remittance specifically means that all other sources of foreign exchange earnings like equity or debt participation, donations, loan repayment receipts, etc. which is not related to the Service provided, will not be considered.
- The following shall not be considering for the calculation of entitlement under the SEIS scheme –
- Remittances of Foreign Exchange received for:
- Under the Financial Services Sector
- Raising loans of all types in foreign currency.
- Realization of Export proceeds of clients.
- Use of ADRs or GDRs or other instruments for issuance of Foreign Equity.
- Foreign Currency Bonds Issuance.
- Selling Securities and Foreign Currency Bonds.
- Selling Securities and other Financial Instruments.
- Other types of receivables which are entirely distinct from the Services which are rendered by the financial institutions.
- Under the Financial Services Sector
- Under Regular/ Contractual employment in a foreign country
- Payments which are received from the EEFC Account for various Services.
- Equity participation, donations, etc. or any other kind of foreign exchange turnover by the Healthcare Institutions.
- Equity participation, donations, etc. or any other kind of foreign exchange turnover by the Educational Institutions.
- Turnover of various DTA Service Providers gets clubbed with the turnover of Services rendered by EOU/EHTP/STPI or BTP units.
- All the foreign exchange earnings by Airlines or even Shipping whose neither origin nor source country is India.
- Telecom Sector Service providers.
- Remittances of Foreign Exchange received for:
Frequently Asked Questions
Some Important Points to Note:
- SEIS Application should be made to jurisdictional DGFT offices employing a DGFT Digital Signature.
- The Exporter can apply one application for one FY.
- One needs to claim the incentives before 12 months from the end of the relevant financial year. After 12 months Late cut/Penalty will apply.
- Claim for a particular FY will be rejected if it is made after 3 Years from the end of that particular FY.
- SEIS Application is to be submitted online on the DGFT website, followed by the physical submission of the required documents.
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2020-09-06
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2020-09-02
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2020-02-29
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2020-09-02
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2020-09-02
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2020-02-29
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2020-02-29
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2020-02-29
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2020-02-29
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2020-02-29
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2020-02-29
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2020-02-29
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2020-02-29
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2020-02-29
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2020-02-29
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