What is the SEIS Scheme?
The government of India (DGFT) launched the SEIS scheme for 5 years under the Foreign trade policy of India 2015-2020. It is the replacement to prior scheme to Service From India Scheme (SFIS). SEIS schemes main objective is to encourage exporting services for India’s economic development
Incentives are given to the exporters who qualify the basic requirements for the benefits of the SEIS Scheme. Those incentives are given in the form of Duty-Free Credit Scrip. The incentives are within the range of 3% to 7% and are given by DGFT and are calculated on the base of net foreign exchange earned.
Eligibility for SEIS scheme:
Services rendered in: Mode 1: cross border & Mode 2: Consumption abroad can easily avail the benefit of the SEIS scheme. Not every exporting services can avail of the benefit from the DGFT. Some sectors like Transportation, R&D Sector, Rental/ Leasing Services can avail the benefit and which can be up to 7% incentives.
Exporters can refer the Appendix 3D under the SEIS scheme that shows the complete list of services with details of all the transportation services that are eligible to take the SEIS benefits. It includes the columns with provisional Central Production Classification (CPC) that are listed for each service. It shows all product classification for all goods and services with the CPC code and incentives assigned to each service. By the classification, service exporters can easily categorize their service and identify the sector and the percentage of incentives that will be credited to them based on their foreign exchange earnings. Under Appendix 3D the main category of “Transportation Services” is further classified into many sub-categories as Maritime Transport Services, Air Transport Services, and Services auxiliary, Road Services.
Claiming Benefit of SEIS Scheme:
To claim the benefit of the SEIS scheme, exporters have to apply for the SEIS scheme benefit to DGFT. The last date for that 12 months from the end of the relevant financial year. One can apply to the end of the relevant FY till the next year, but with the late fee, reduction depending on the duration of the delay through the last day is missed.
You have to apply by using the digital signature (DSE). The basic requirements for claiming the SEIS scheme benefits are exporters must have IEC (Import Export Code) and RCMC (Registration Cum Membership certificate). While applying applicant has the option to choose the jurisdictional regional officer.
After application, it usually takes 3-4 working days. In case of any discrepancy and mistake, it might get delayed.
Once the duty credit scrips are issued under the SEIS scheme are easily transferrable or can be easily sold.
The validity of Duty-Free scrip:
After issuing the scrip, the valid period is 18 months.