1. Introduction
1.1 In the new Foreign Trade Policy-2015-2020, with effect from 1.4.2015, Service
Exports from India Scheme (in short, also known as SEIS) has been announced by the
Government.
1.2 It not only replaces Served from India scheme (SFIS) available under the Foreign
Trade Policy 20109-2014, but it rationalize the incentives under the erstwhile schemes,
removes various kind of restrictions of use of scrip issued under the Scheme and
significantly enlarges the scope of the earlier scheme. Unlike earlier Scheme, this scheme
has been made applicable to exports by SEZ units.
1.3 SEIS shall apply to ‘Service Providers located in India’ instead of ‘Indian Service
Providers’. Thus SEIS provides for rewards to all Service providers of notified services,
who are providing services from India, regardless of the constitution or profile of the
service provider. The present rates of reward are 3% and 5% of net foreign Exchange
Earning.
2. Objective of the Scheme
2.1. Objective of Service Exports from India Scheme (SEIS) is to encourage export of
notified Services from India. This Scheme has been announced on 01.04.2015 under the
New Foreign Trade Policy- 2015-2020 and has come into effect from 1.4.2015. In other
words, the rewards under the scheme are admissible on exports of notified services
rendered on or after 1.4.2015.
3. Salient Features of the Scheme at a glance
Apply to ‘Service Providers located in India’ instead of ‘Indian Service Providers’.
Provides for 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 are based on net foreign exchange earned.
Reward issued as duty credit scrip is freely transferable and usable for all types of
goods and service tax Debits on procurement of services / goods.
Debits are eligible for CENVAT credit or drawback.
Certain specified categories of services are not eligible for benefit under the
Scheme.
Scrip can be used for payment of
(i) Customs Duties for import of inputs or goods, except items listed in Appendix 3A;
(ii) Payment of excise duties on domestic procurement of inputs or goods, including capital goods.
(iii)Payment of service tax on procurement of services
(iv) Payment of Customs Duty and fee as per paragraph 3.18 of this Policy.
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