Service Exports from India Scheme

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Service Exports from India Scheme: An Overview

The Service Exports from India Scheme (SEIS), introduced on April 1, 2015, aims to promote the export of specified services from India by offering duty credit scrips as rewards to eligible service providers.

These duty credit scrips are freely transferable and can be utilized for various payments, including customs duties on imported inputs or goods, excise duties on domestically procured inputs or goods (including capital goods), service tax on procurement of services, and other related fees.

By providing these incentives, SEIS encourages Indian service providers to expand their global reach, thereby enhancing the country's service export performance and contributing to foreign exchange earnings.

Facing roadblocks in leveraging the merits of Service Exports from India scheme? Speak to professionals at Corpbiz today for worry-free solutions.

Service Exports from India Scheme
Service Exports from India Scheme process

Why is the SEIS Scheme Right for Your Business?

Businesses that provide export services listed in Appendix 3D of the Foreign Trade Policy 2015-2020 can benefit from the SEIS scheme. One major advantage is receiving a duty-free credit scrip, which can be used to pay customs duties and other specified taxes. These scrips are transferable and can be sold, making them effectively a cash incentive.

Duty credit scrips are granted to eligible service exporters as a percentage of their net foreign exchange earnings, with rewards ranging from 3% to 7%. The calculation of these rewards is based on the guidelines outlined in the SEIS scheme.

Benefits Under the Service Exports from India Scheme

The benefits under the service exports from India scheme are as follows:

Service Exports from India Scheme Advantages
Service Exports from India Scheme

Applicability

The service exports from India scheme is applicable to all service providers located in India, not just Indian nationals. It benefits those exporting notified services from India.

Service Exports from India Scheme process

Rewards Based on Foreign Exchange Earnings

Rewards are granted based on the net foreign exchange earned by the service provider.

Service Exports from India Scheme

Transferable Duty Credit Scrips

The duty credit scrips awarded are freely transferable and can be used for various purposes, including the import of goods.

cost effectiveness in Service Exports from India Scheme

Eligibility for Credits and Drawbacks

Debits are eligible for CENVAT credits or drawbacks, offering additional financial benefits.

benefit in Service Exports from India Scheme

Usage of Scrips

Scrips can be used for paying customs duties on imports, excise duties on domestic goods, service tax on procured services, and customs duties and fees.

Eligibility Criteria for SEIS Scheme

To be eligible for rewards under the SEIS Scheme, service providers must meet the following criteria:

Checklist for Service Exports from India Scheme SEIS

  • Must be based in India and engaged in providing notified services as listed in Appendix 3D of the Foreign Trade Policy.
  • LLPs and Partnership Firms should have minimum net free foreign exchange earnings of USD 15,000 in the preceding financial year.
  • Individual Service Providers and Sole Proprietorships should have minimum net free foreign exchange earnings of USD 10,000 in the preceding financial year.
  • Payments received in Indian Rupees (INR) for specified services are considered deemed foreign exchange receipts, as per Reserve Bank of India (RBI) guidelines.
  • Service providers must possess an active IEC at the time of rendering services for which rewards are claimed.

What are the Pre-Requisites for Applying for the SEIS Scheme?

  • Applicant should have an active IEC at the time of rendering services.
  • Applicants should have certain minimum earnings.
  • Applicant must have exported eligible services.
  • Should not fall under ineligible categories as in public notice 45 dated 05.12.2017.
  • Services provided under Modes 1 and 2 only are allowed for claims for eligible services.
  • Negative Net Foreign Exchange earnings (NFE) make the entitlement under zero for the financial year.
Checklist for Service Exports from India Scheme
Checklist for Service Exports from India Scheme

Documents Needed for Service Exports from India Scheme

  • Bank Realization Certificate (BRC)
  • Foreign Inward Remittance Certificate (FIRC)
  • CA-verified Financial Statements
  • Timelines and Deadlines
  • Importer Exporter Code (IEC Code)
  • Application form ANF-3B (Aayat Niryat Form)
  • CA Certificate
  • Statement showing the nexus between invoices and FIRC’s
  • Write up of services
  • Self-certified copy of invoice and FIRC’s
  • DGFT Digital Signature Certificate (DSC)
  • RCMC Copy
  • Necessary Declarations

How to Apply for Service Exports from India Scheme SEIS?

The steps-by-step service exports from India scheme SEIS process are as follows:

Service Exports from India Scheme Process

Obtain an Import Export Code (IEC)

The applicant must first obtain an Import-Export Code (IEC) from the Director General of Foreign Trade (DGFT). This code acts as a unique identifier for all import or export activities.

Calculate Net Foreign Exchange Earnings

It is crucial to calculate foreign exchange earnings, subtracting any outflows related to expenses directly tied to the export of services, as this will determine eligibility for the scheme.

Collect Required Documentation

The applicant needs to gather the necessary documents for SEIS scheme compliance, such as Foreign Inward Remittance Certificates and an endorsement from a chartered accountant.

Apply via the DGFT Online Portal

The applicant must visit the DGFT portal to complete the application for service exports from India scheme SEIS. This involves filling out the application form, uploading the required documents, validating the entries, and submitting the form.

Service Provider Ineligible for SEIS Scheme and Time Limits

Service Provider Ineligible for Service Exports from India Scheme

  • Includes foreign exchange remittances linked to financial services activities.
  • Refers to payments received for services provided through Exchange Earners' Foreign Currency (EEFC) accounts.
  • Covers foreign exchange transactions such as equity participation, gifts, donations, and similar turnovers by healthcare companies.
  • Includes foreign exchange earnings from equity participation, gifts, donations, and similar transactions made by educational institutions.

Time Limits under the SEIS Scheme

  • Applicants have 12 months to apply for duty credit scrips.
  • The 12-month period begins at the end of the relevant financial year for the claim period.
  • A duty credit scrip remains valid for 18 months from the date of issuance.
  • The SEIS scheme becomes effective from the date the policy is officially notified.

Calculation of SEIS Scheme Incentives

To determine the incentive amount, net foreign exchange earnings must be assessed. Below is the Calculation of SEIS scheme Incentives:

Net Foreign Exchange Earnings Calculation

Net Foreign Exchange Earnings Calculation

Net foreign Exchange Earnings=Gross Foreign Exchange Earnings-Total foreign Exchange Expenses

Incentive rates by Service Category

Incentive rates by Service Category

The incentive rates offered by SEIS vary depending on the service category.

Employment Tax & TDS Obligations

Example

The IT services receive a higher incentive rate as compared to other sectors, mostly 5%.

Objectives of Service Export from India Scheme SEIS

Given below is the list of objectives of Service Export from India Scheme SEIS:

Service Export from India Scheme SEIS Feature
  • The Government of India offers incentives ranging from 3% to 7% of net foreign exchange earnings to eligible service providers exporting services from India to organizations abroad.
  • The SEIS scheme was introduced in 2015 as part of the Foreign Trade Policy and was valid for five years, from 2015 to 2020.
  • The scheme aimed to encourage and support the export of notified services from India by providing financial incentives to service providers.
  • The incentives are provided as duty-free credit scrips rather than direct monetary benefits. These scrips can be used to pay various taxes on goods and services. Additionally, they are freely transferable and can be sold to other assessee.

Service Eligible for Service Exports from India Scheme

The list of services eligible for the service exports from India scheme is as follows:

Income Tax Filing

Mode I

This refers to cross-border trade—services provided by India to customers in another country.

Mode I

This refers to cross-border trade—services provided by India to customers in another country.

Mode II

Mode II

This is consumption abroad, where services are supplied from India to consumers located in other countries.

Mode II

This is consumption abroad, where services are supplied from India to consumers located in other countries.

Mode III

Mode III

This involves commercial presence—services provided by India through a business presence (like a branch or subsidiary) in another country.

Mode III

This involves commercial presence—services provided by India through a business presence (like a branch or subsidiary) in another country.

Mode IV

Mode IV

This refers to the presence of natural persons, where services are provided by Indian individuals who physically move to another country to offer their services.

Mode IV

This refers to the presence of natural persons, where services are provided by Indian individuals who physically move to another country to offer their services.

Service Exports from India Scheme Vs. Other Export Incentives

The difference between service exports from India scheme Vs. Other export incentive scheme are as follows:

S. No Assest Service Exports from India Scheme Other Export Incentives
1. Objective Its primary objective is to promote service exports It supports different types of exports.
2. RoDTEP SEIS helps service exporters, while RoDTEP helps manufacturers by covering certain duties and taxes. The RoDTEP scheme is for goods exports and not services.
3. Using both SEIS & RoDTEP Understanding the scheme properly will help businesses involved in export services. Similarly, businesses involved in the export of products can take this advantage

Why Choose SEIS Scheme for Your Business?

The business may choose the SEIS scheme for your business because of the following reasons:

  • It provides a duty-free scrip as a reward, which can be used to pay customs duties and other specified taxes.
  • These rewards are transferable, making them effectively cash incentives that can be sold to other businesses.
  • It boosts business revenue from international markets.
  • It encourages businesses to expand their export services and grow in global markets by offering financial support.
Trust Corpbiz for SEIS Scheme

Reasons to Trust Corpbiz for SEIS Scheme

Expert Consultation

Upward Trend in Exports up to 30%

Our Consultants at Corpbiz will help you boost exports by up to 30% with our SEIS Scheme.

Time Efficiency

Saved 5 Lakh+ Hours of Service Exporters

We have successfully saved 5,00,000+ hours of service exporters in the last 3 to 4 years.

Paperwork & Documentation

Documentation Support

Our professionals at Corpbiz ensure hassle-free documentation support for the SEIS Scheme.

Compliance Management

99% Success Rate

We have maintained a 99% success rate in utilizing the potential of Service exports from India scheme.

Customized Solutions

End-to-end Assistance

We extend end-to-end guidance and support for service exports from India scheme SEIS.

Peace of Mind

24/7 Availability

Our business consultants at Corpbiz are available round-the-clock to help you out in the SEIS scheme.

FAQs on Service Exports from India Scheme

Have a look at the answers to the most asked questions

Only the notified services listed in Appendix 3D of Foreign Trade Policy 2015-2020 are eligible for the Service Exports from India scheme SEIS benefits.

The formula to calculate the Net Foreign (NFE) Earnings is Gross Earnings of Foreign Exchange minus Total Expenses or payments or remittances of Foreign Exchange by IEC holder, relating to the service sector in the financial year.

Yes, an IEC number is mandatory to avail of incentives under the service exports from India scheme SEIS.

DGFT stands for the Directorate General of Foreign Trade, an organization responsible for regulating and promoting foreign trade in India. It handles the implementation of export promotion schemes, issues the Import-Export Code (IEC) number, provides export promotion licenses, and issues certificates under the Foreign Trade Policy of India.

Duty Credit Scrips for service exports from India scheme are incentives or rewards provided to eligible exporters at a notified rate. These scrips can be used to pay various taxes and duties, offering a financial benefit to exporters.

A Duty Credit Scrip under SEIS scheme is valid for 18 months (Eighteen)from the date of issuance.

You have 12 months (twelve) from the end of the financial year of the claim period to file an application for obtaining Duty Credit Scrips.

Services can be delivered or exported under SEIS scheme in the following categories:
  • Category I: Cross-border trade of eligible services between countries.
  • Category II: Consumption of services abroad.
  • Category III: Commercial presence of one country's services in another territory.
  • Category IV: Presence of a natural person from one country to provide services in another’s territory.

Exporters can use Duty Credit Scrips for the payment of the following under Service Exports from India Scheme:
  • Basic customs duty
  • Safeguard duty
  • Transitional product-specific safeguard duty
  • Anti-dumping duty

MEIS stands for the Merchandise Exports from India Scheme. It aims to promote the manufacturing and export of notified goods or products. Under this scheme, exporters receive a reward in the form of a duty credit scrip, which helps offset infrastructural inefficiencies and related costs. These scrips are transferable and can be used to pay certain duties.

Authors

Written by Aarya Pokharel. Last updated on Nov 11 2025, 09:47 PM

Aarya Pokharel brings 3 years of solid experience in legal research and compliance. Her expertise spans tax filing, secretarial compliances, and advisory services, with a strong focus on delivering precise legal research and strategic advisory support.

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