Overview of Service Exports from India Scheme (SEIS)
Two schemes are introduced under the Indian Foreign Trade Policy 2015-20 as a part of the Exports from India Scheme, Services Exports from India Scheme (SEIS) and Merchandise Exports from India Scheme (MEIS). Service Exports from India Scheme (SEIS) was introduced on 1st April 2015 to encourage the export of notified services from India. SEIS focuses on promoting the export of services from India by providing a duty credit scrip for eligible exports. Duty credit scrips are accorded as rewards under SEIS. These duty credit scrips and goods imported or domestically procured against them are freely transferable. The duty credit scrips are used for:
Services Applicable for Service Exports from India Scheme (SEIS)
The following services are applicable for Service Export:
- Professional Services
Professional Services here include the following services:
- Research and Development Services
The R&D services on the followings:
- Rental/Leasing Services without operators
Rental or lease services relating to the followings:
- Audio-visual Services
The services included here are related to the following:
- Construction and Related Engineering Services
These services are related to the following work or activities:
- Educational Services
Under this heading following services are included:
- Environmental Services
The environmental services are further classified into the following services:
- Health and Social Services
The health and social services include hospital services.
- Tourism and Travel Services
The followings are included under the tourism and travel services:
- Recreational, Cultural and Sporting Services
The following services are included under the recreational, cultural and sporting services:
- Transport & Auxiliary Services
Transport and auxiliary services include the following activities and services:
- Other Business Services
All other services which are not covered under the above-mentioned services are included here; some of them are as follows:
SEIS is applicable to Service Providers located in India and not Indian Service Providers. Thus, SEIS is providing rewards to all service providers to notify services, who are providing services from Indian Scheme, disregards the Constitution or profile of service provider, the rates of reward are 3% and 5% of net foreign exchange earnings.
The rate of reward for the services stated in the above-mentioned list is provided as follows:
Rate of Reward
Research and Development Services
Rental/Leasing Services without Operations
Construction and Related Engineering Services
Health and Social Services
Tourism and Travel Services
Recreational, Cultural and Sporting Services
Transport & Auxiliary Services
Other Business Services
Eligibility for Service Exports from India Scheme (SEIS)
Service Providers of notified services in India are eligible for the Service Exports from India Scheme (SEIS). The basic eligibility requirements for Service Exports from India Schemes are as follows:
Net Foreign Exchange= Gross Earnings of Foreign Exchange – total Expenses or payment or remittances of Foreign Exchange.
A service provider is ineligible for Service Exports from India Scheme (SEIS) under the following conditions:
- Foreign exchange remittances that are earned through the offering of services, such as donations, debt participation, loan payment, etc., other than notified services are not considered eligible for SEIS.
- Foreign exchange remittances associated with the Financial Service Sector:
- All kinds of loans are offered by self-raising foreign currency funds raised.
- Foreign Equity issued by GDRs/ADRs or similar
- The realisation of export proceeds of clients
- Issuing foreign currency bond
- Sale of securities proceeds and any other financial instruments
- Any receivable that is not related to the service offered by financial companies
Benefits of the Service Exports from India Scheme (SEIS)
Following are the benefits of the Service Exports from India Scheme:
Pre-requisites for Service Exports from India Scheme (SEIS)
Following are pre-requisites for applying for the Service Exports from India Scheme (SEIS):
Necessary Papers Required for Service Exports from India Scheme (SEIS)
Necessary Papers required for the Service Exports from India Scheme (SEIS) are as follows:
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Procedure for Service Exports from India Scheme (SEIS)
The steps must be followed at the time of applying for the Service Exports from India Scheme (SEIS) are as follows:
Frequently Asked Questions
DGFT is short for the Directorate General of Foreign Trade (DGFT), an organisation involved in regulating and promoting foreign trade. It is responsible for the implementation of various export promotion schemes, issuance of IEC (Import-Export Code) number, issuance of various export promotion licenses and issuance of certificates under the Foreign Trade Policy of India.
Duty Credit Scrips is an incentive or reward given to eligible exporters at a notified rate. These scrips are also to make payment of different taxes and duties.
From the date of issuance, a Duty Credit Scrip is valid for 18 months.
A time period of 12 months from the end of the financial year of the claim period is given for filing an application to obtain Duty Credit Scrips.
Following are different categories in which services are delivered or exported:
Category I: cross border trade of eligible services from one country to another.
Category II: consumption of services abroad
Category III: the commercial presence of one country’s services in another territory.
Category IV: the presence of a natural person of one country to provide services in another’s territory.
The exporter with a duty credit scrip can use it for the payment of the followings:
- Basic customs duty
- Safeguard duty
- Transitional product-specific safeguard duty
- Anti-dumping duty
MEIS stands for the Merchandise Exports from India Scheme, which promotes the manufacture and export of notified goods or products. It provides a reward to exporters to offset infrastructural inefficiencies and associated costs. Such a reward is called duty credit scrip, which is freely transferable and can be used for certain kinds of payments of duties.