SEIS Scheme Benefits in India – All You need to know
What is SEIS Scheme?
Under the Foreign trade policy of India 2015-2020, the Government of India (DGFT) launched the SEIS scheme India for a period of 5 years. Service Exports From India Scheme (SEIS) is the replacement to prior scheme Service From India Scheme (SFIS). The main objective of the SEIS scheme is to encourage exporting services for the economic development of India.
However, service exporters can not avail the benefit of SEIS scheme directly from the DGFT in the form of money, instead of that incentives are credited in the form of Duty-Free Credit Scrip. The incentives credited is issued in the range of 3% to 7% by DGFT and is calculated on the basis of net foreign exchange earned.
Eligibility for SEIS scheme:
Not every exporting service can get the benefit of the SEIS scheme, only the services rendered in Mode1: cross border & Mode2: Consumption abroad can easily avail the benefit. Thus, sectors like Transportation Services, R&D Sector, Rental/ Leasing Services, etc can avail the benefit of almost 7% incentives.
Appendix 3D under the SEIS scheme provides the complete list with detailing of all the transportation services that are eligible to claim the SEIS benefits. Appendix 3D lists the columns with provisional Central Production Classification (CPC) for each service. It shows all product classification for all goods and services with the CPC code assigned to each service. By the classification, service exporters can easily categorize their service and identify the sector and what percentage of incentives will be given to them based on their net foreign exchange earnings. For an instance, the main category of “Transportation Services” is classified further into sub-category as Maritime Transport Services, Road Services, Air Transport Services, and Services auxiliary.
Claiming Benefit of SEIS Scheme:
To claim the benefit of the SEIS scheme, service providers have to file an application under the SEIS scheme to DGFT. The last date for the SEIS scheme is 12 months from the end of the relevant financial year. If the last day is missed out, you can still file the application after the end of the relevant FY till the next year, but with the late fee, reduction depending on the duration of the delay.
You can file an application by using the digital signature. The basic requirement to claim the advantage of the SEIS scheme is that service providers must have IEC (Import Export Code) and RCMC (Registration Cum Membership certificate). While applying applicant has the option to choose the jurisdictional regional officer.
After applying for the SEIS scheme with proper documentation, it most probably takes 3-4 working days. In case of any discrepancy and mistake, it might get delayed.
Once the duty credit scrips are issued under the SEIS scheme are easily transferrable or can be easily sold.
The validity of Duty-Free scrip:
The valid period for this scrip is 18 months from the date it is issued.
