Introduction to SEIS Scheme:
Under the Foreign trade policy of India 2015-2020, the Government of India (DGFT) introduced the scheme “SEIS scheme India” for the validity of 5 years. Service Exports From India Scheme (SEIS) is the substitution to the prior scheme “Service From India Scheme (SFIS)”. The main purpose of launching the SEIS scheme is to encourage services exporting outside India for the economic development of India.
Service exporters have to apply for the benefit to the DGFT and the incentives will be given in the form of Duty-Free Credit Scrip instead of directly crediting them money. The advantage of this scrip is that exporters can use this incentive for further business. These incentives credited are in the range of 3% to 7% and is decided by DGFT. Incentive percentage is calculated on the base of net foreign exchange earned by the exporters.
SEIS Scheme Eligibility:
There is the number of services exporting from India, but the question is can every service gets the benefit of SEIS scheme?
No, only the services mention in Mode1: cross border & Mode2: Consumption abroad can apply for the benefit.
Exporters can refer to Appendix 3D Form to see the complete details of services that are eligible to claim the SEIS benefits. It shows the complete lists of services with provisional Central Production Classification (CPC) assigned for each service. By referring this, service providers can categorize their service and identify what percentage of incentives will be credited to them depending on there net foreign earnings. Services like Transportation Services, professional services, research and development sector, communication service, rental service, education service, etc. are explained in details.
Apply for SEIS Benefit:
For claiming the benefit of the scheme, service providers have to apply to DGFT. The last date for the application is the SEIS scheme is 12 months from the end of the financial year. If the last day is missed out, you can apply, but with the late fee with reduction depending on the duration of the delay.
You can apply by using the digital signature. The basic need to claim the advantage is service providers or exporters must have IEC (Import Export Code) and RCMC (Registration Cum Membership Certificate) registered with it. The applicant has the option to select the jurisdictional regional office while applying for the incentives.
Time is taken for Issuing Incentives:
After applying with proper documentation, it mostly requires 3-4 working days for issuing. In case of any discrepancy and mistake, it might get delayed.
The validity of Duty-Free scrip:
The valid period for using this scrip is 18 months from the date it has been issued. Duty credit scrips can be transferrable or can be easily sold also.