Under Foreign Trade Policy (FTP) – 2015-20; Service Exports from India Scheme (SEIS) has been introduced, replacing the earlier scheme ‘Served from India Scheme’ under Foreign Trade Policy, 2009-14. The main objective of the scheme is to is to encourage export of notified Services from India.Under SEIS, the service providers of notified export services are incentivized in the form of Duty Credit Scrips at the rate of 3 or 5% and from 01.11.2017 onwards rate will be 5% to 7% on net foreign exchange earnings. For the financial year 2019-20 and 20-21 applicable rates and application form are yet to be introduced.
These SEIS scrips are transferrable and can also be used for payment of basic customs duty. The rewards under SEIS shall be admissible for export of services rendered on or after 01.04.2015.
SEIS is a scheme designed to provide rewards to exporters to offset infrastructural inefficiencies and associated costs. The Duty Credit Scrips and goods imported/ domestically procured against them shall be freely transferable. The Duty Credit Scrips can be used for:
- Payment of Basic Customs Duty and Additional Customs Duty specified under sections 3(1), 3(3) and 3(5) of the Customs Tariff Act, 1975 for import of inputs or goods, including capital goods, as per DoR Notification, except items listed in Appendix 3A.
- Payment of Central excise duties on domestic procurement of inputs or goods,
- Payment of Basic Customs Duty and Additional Customs Duty specified under Sections 3(1), 3(3) and 3(5) of the Customs Tariff Act, 1975 and fee as per paragraph 3.18 of this Policy.
Objective of the Service Exports from India Scheme (SEIS) scheme to encourage and maximize export of notified services from India.
Reference to the content: https://www.dgft.gov.in/CP/?opt=seis