SEIS Scheme (Service Exports from India Scheme)

Updated on Jul 25, 2020

Overview

SIES or Service Exports from India Scheme plans to encourage export services via India by giving a duty scrip estimate for suitable exports. The service providers who are located inside India will be benefited under the SEIS scheme. This scheme is for all the available commodities and services in India. Earlier, the project was called Served from India Scheme – SFIS, which is now changed to the SIES scheme.

Eligibility Criteria

All the service providers from the notified services that are situating in India are qualified for the Service Exports from India Scheme. To be qualified for the scheme, the LLP or Partnership firm or company of the service provider must possess minimum earnings from the net exchange of fifteen thousand US dollars from the foreign trade of the previous financial year to be qualified for the duty credit scrip. And for the single service providers, a minimum amount of USD ten thousand is required as the earnings from foreign exchanges to be eligible for the scheme. However, if the service provider wants to claim rewards, then they must have a functioning Import Export Code- IE Code while representing such services under which the awards are asked for.

The Net Foreign Exchange income under the SEIS scheme is calculated as:

Net Foreign Exchange = Gross Earnings of Foreign Exchange – Total Expenses or payment or remittances of Foreign Exchange.

Duty Credit Scrip

The service providers of qualified services will be permitted for duty credit scrips at an already noticed rate for the total earnings in foreign exchange. The scrip can be later utilized while paying for customs, service taxes, excise duties, and other taxes. However, under the SEIS scheme, there is relaxation for the real user conditions and duty scrip and for the products imported while undoing duty scrips that are liberally transferable. The credit duty scrips will be valid only for a limited period of eighteen months, starting from the day of issue.

Reward

The rate and services for the rewards qualified for services export are:

Professional Services - 5% Tariff of Reward

  • Legal Services
  • Auditing, Bookkeeping and accounting services
  • Taxation services
  • Architectural services
  • Engineering services
  • Int. Engineering services
  • Urban landscape and planning for architectural services
  • Dental and medical services
  • Veterinary services
  • Services given by nurses, midwives, paramedical personnel and physiotherapists 

Development and Research Services - 5% Tariff of Reward

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

Rental or Leasing Services with No Operators- 5% Tariff of Reward

  • Related to ships
  • Related to Aircraft
  • Related to different transport equipment
  • About various equipment and machinery

Audiovisual Services - 5% Tariff for Reward

  • Motion video and tape distribution and production service
  • Motion video projection service
  • Television and radio services
  • Television and radio transmission services
  • Sound recording

Construction-related Engineering Services - 5% Tariff for Reward

  • Construction work of building
  • Construction work of civil engineering
  • Assembly and installation work
  • Building works and finishing point

Educational Services - 5% Rate for Reward

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

Environmental Services – 5% Rate for Reward

  • Sewage services
  • Decline disposal services
  • Sanitation and other services

Social and Health Services – 5% Rate for Reward

  • Hospital service

Travel and Tour Services – 3% or 5% Rate for Reward

  • Hotel- 3%
  • Restaurants-3%
  • Tour operators and travel agencies- 5%
  • Services for tourist services- 5%

Recreational, Cultural and Sporting Services – 5% Rate of Reward

  • Entertainment services which include live bands, theatre & circus services)
  • News agency 
  • Libraries, museums, archives and numerous cultural services
  • Sporting and different recreational services

Transport & Auxiliary Services – 5% Rate for Reward

  • Passenger transportation
  • Freight transportation
  • Rental of containers with crew
  • Repair and maintenance of vessels
  • Towing and pushing services
  • Helping services for maritime transport
  • Rent of aircraft along with the crew
  • Repair and maintenance of aircraft
  • Airport ground and operations handling
  • Rent for commercial vehicles along with operators
  • Repair and maintenance for the road transport equipment
  • Support for services like road transport
  • Cargo-handle services
  • Warehouse and storage services
  • Freight agency service

Other Business Services – 3% Rate of Reward

  • Advertising services
  • Public opinion and market research polling services
  • Management consultation service
  • Services for the consolation of management
  • Technical testing & analysis services
  • Services supplementary for forestry, hunting and agricultural
  • Services supplementary to fishing
  • Services supplementary to mining
  • Services supplementary to manufacturing
  • Services supplementary for energy distribution
  • Investigation & security
  • Building and cleaning services
  • Photographic services
  • Packaging services
  • Printing and publishing
  • Convention services

Foreign Exchange Remittance

The remittances for foreign exchange other than the earned ones for the deception of pre-notified services will not be counted for the claim. Therefore, the different sources from the foreign exchange incomes like debt or equity participation, repayment for loans, donations, etc. and other numerous foreign exchange inflows, not related to the description for services can be ineligible.

Frequently Asked Questions about SEIS Scheme

Q. What is the SEIS Scheme?

SIES or Service Exports from India Scheme plans to encourage export services via India by giving a duty scrip estimate for suitable exports. The service providers who are located inside India will be benefited under the SEIS scheme.

You can learn more about this scheme on its official website.

Q. Who is eligible for the scheme?

The service providers who are located inside India will be benefited under the SEIS scheme. This scheme is for all the available exports and services in India.

Q. How to calculate the Net Foreign Exchange?

Net Foreign Exchange = Gross Earnings of Foreign Exchange – Total Expenses or payment or remittances of Foreign Exchange.

Q. Is it necessary to have an EIC number?

Yes, to get the incentives, the service provider must have the EIC number.

Q. How to use the issued duty scrip?

The scrip can be utilized while paying for custom duties, service taxes, excise duties, and other taxes. However, under the SEIS scheme, there is relaxation for the real user conditions and duty scrip and for the products imported while undoing duty scrips that are liberally transferable.

Q. What is the validity of the duty scrips?

The credit duty scrips will be valid only for a limited period of eighteen months, starting from the day of issue.

Q. How much time does the department takes to issue the claims?

The department takes almost three working days to issue the claims.


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WRITTEN BYVarsha Verma

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