 In the new Foreign Trade Policy- 2015-2020, (effective from 1 April 2015), Service Exports from India Scheme (also known as SEIS) has been announced by the Government.
Objective of SEIS
To encourage export of notified services from India. This Scheme has been announced under the New Foreign Trade Policy- 2015-2020 and has come into effect from 1 April 2015. In other words, the benefits and rewards under the scheme are admissible on exports of notified services rendered on or after 1 April 2015.
Salient Features of SEIS:
- Applicable to 'Service Providers located in India' instead of 'Indian Service Providers'.
- Provides benefits and rewards to all service providers of notified services, who are providing exporting services from India, regardless of the constitution or profile of the service provider
- Rate of reward under SEIS is based on net foreign exchange earned.
- Reward issued as duty credit scrip is freely transferable and usable for all types of goods and custom duty debits on procurement of services / goods.
- Debits are eligible for CENVAT credit or drawback.
- Certain specified categories of services are not eligible for exports benefit under the SEIS
Following Services are eligible for reward under SEIS. Services rendered in:
- Cross border trade - Supply of a 'service' from India to any other country; and
- Consumption abroad - Supply of a 'service' from India to service consumer(s) of any other country;
Following Services are not eligible for reward under SEIS. Services rendered in:
- Commercial Presence - Supply of a 'service' from India through commercial presence in any other country.
- Presence of natural persons - Supply of a 'service' from India through the presence of natural persons in any other country
To summarize, SEIS is available to all 'Service Providers located in India instead of Indian Service Providers regardless of the constitution or profile of the service provider.
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