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, 

  1. 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.
  2. 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

  • 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

  • R&D services on natural sciences
  • R&D services on social sciences and humanities
  • Interdisciplinary R&D services

Rental/Leasing services without operators

  • Relating to ships, aircraft, other transport equipment, and other machinery and equipment

Other business services eligible

  • 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 (excluding maritime vessels, aircraft or other transport equipment)
  • Building-cleaning services
  • Photographic services 
  • Packaging services
  • Printing, publishing and Convention services

Communication Services

Audio-visual services

  • 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

  • General Construction work for the building 
  • General Construction work for Civil Engineering 
  • Installation and assembly work 
  • Building completion and finishing work

Educational Services (SEIS benefits not available to Capitation fee)

  • Primary education services 
  • Secondary education services 
  • Higher education services 
  • Adult education

Environmental Services

  • Sewage services, 
  • Refuse disposal services 
  • Sanitation, and similar services

Health-related and Social Services

  • Hospital services

Tourism and Travel-related Services

  • Hotels and Restaurants (including catering)
  • Travel agencies and tour operator’s services 
  • Tourist guides services Recreational
  • cultural and sporting services (other than audio-visual services), 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 services

(Operations from India by Indian Flag Carriers only is allowed under Maritime transport services)

  • Maritime Transport Services
  • Passenger transportation (Operations from India by Indian Flag Carriers only is allowed under Maritime transport services)
  • Freight Transportation (Operations from India by Indian Flag Carriers only is allowed under Maritime transport services)
  • Rental of vessels with crew (Operations from India by Indian Flag Carriers only is allowed under Maritime transport services)
  • Maintenance and repair of vessels
  • Pushing and towing services
  • Supporting services for maritime transport.

Air transport services

  • Rental of aircraft with crew, maintenance and repair of aircraft, Airport Operations & ground handling.

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.

Services Auxiliary to All Modes of Transport

  • Cargo-handling services, Storage and warehouse services, Freight transport agency services

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 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.

Frequently Asked Questions​

After knowing all the necessary information, let us have a brief discussion to the procedure for filing the SEIS application.

Document Required:

  1. IEC
  2. Application Form for Service Exports from India Scheme (SEIS) in Form ANF 3B
  3. Write Up of Services as per Form ANF 3B,
  4. Invoices and FIRC’S
  5. RCMC certificate
  6. Certificate of Chartered accountant in Annexure to ANF3B

Visit DGFT website i.e. www.dgft.gov.in

Click on Services -- Online Ecom Application.

Here now go towards SEIS for your year. You will need to attach a DSC and then login with your credentials, and then the form will open.

After selecting an option, you must fill the details and submit the form.

If you are exporting more than one Service, you must follow the classification as per the Appendix 3D and show the “Service Category Information” in the ANF 3B form.

 

Services

Rate of Reward

Professional Services

5% Rate of Reward

Research and Development Services 

5% Rate of Reward

Rental/ Leasing Services without Operators

5% Rate of Reward

Audio-visual Services 

5% Rate of Reward

Construction and Related Engineering Service 

5% Rate of Reward

Educational Services

5% Rate of Reward

Environmental Services 

5% Rate of Reward

Health and Social Services

5% Rate of Reward

Tourism and Travel Services 

3% or 5% Rate of Reward

Recreational, Cultural and Sporting Services 

5% Rate of Reward

Transport and Auxiliary Services

5% Rate of Reward

Other Business Services

3% Rate of Reward



The service provider receives the incentive as duty credit scrip. The service provider can use these duty scrips to pay off any import duty and GST or can sell the same in the market. The amount of duty scrips may range between 5 % - 7 % of Net Foreign Exchange depending on the nature of service.

SEIS Incentives are given in the form of Duty Credit Scrip/SEIS scrip. The SEIS Scrips are “Freely Transferable” in nature. It allows the entitled holder to pay import custom duties levied on the import of various Services and goods. These scrips are government-issued and issued by DGFT.

Duty credit scrips shall be valid for a period of 24 months from the date of its issue.

Re-validation of duty credit scrips is possible only - if the validity has expired while in the custody of the Customs Authority or Regional Authority or Government Authority. In any other case the re-validation of duty credit scrips is not permitted.

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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