The SEIS scheme intends is to make export services from India ready for action, competing on prices head on, with other nations. The scheme incentivizes the services suppliers of notified services with Duty Credit Scrips at the rate of 3% or 5% on their net overseas exchange income. The Duty Credit Scrips are transferable and can be used for reimbursement of several Central duties/taxes alongside the vital customs duty. The profits under SEIS shall be permissible for export of services provided on or after 01.04.2015, i.e. the day of notification of Foreign Trade Policy 2015-20.
ELIGIBILITY NORM, TO AVAIL THE SEIS BENEFITS:
- Services suppliers need to have a minimum net free foreign exchange income of US$15,000 in the fiscal year, in which the services have been provided.
- Net Foreign Exchange Earnings for the SEIS system are calculated as:
Net Foreign Exchange = Gross Income of Foreign Exchange – Entire Expenses or Payment or Remittances of International Monetary Exchange.
For Individual Service providers and a sole proprietorship, such less net free foreign exchange income decisive factor would be US$10,000 in the fiscal year when the services have been offered.
- The service suppliers must have an active Import Export Code i.e. IE Code at the time of supplying the services for which the payments have been received.
When the service supplier fulfills the above eligibility terms and conditions, she/he can demand the benefits of SEIS in the outline of Duty Credit Scrips.
HOW TO APPLY FOR SEIS MERITS, ONLINE?
Fill up the online application available on the DGFT site and enter the necessary details in the SEIS ECOM Module. You can refer to the website http://dgft.gove.in/links/appendices-and-anf-ftp2015-2020 on the DGFT Server to get the forms required for SEIS Application. The last date to fill an application is 12 months from the end of the relevant fiscal year.
ELIGIBILITY CRITERIA FOR RECEIVING INCENTIVES UNDER THE SEIS SCHEME:
Only services delivered in the following two modes qualify for the benefits
Mode I: Cross Border Trade which is Render of service from India to some other nation
Mode II: Consumption Abroad which is Supply of service from India to service clients of some other nation.
Services that do not Qualify
Render of service through the following modes do not qualify for the benefits
Mode III: Commercial Presence which is Supply of a Service from India through a mercantile presence in some other Nation
Mode IV: Presence of Natural People in some other Foreign Land – not qualified for the prize under this proposal.
To be qualified for this Scheme, the service supplier should have minimum net free foreign exchange income of $15,000 in the past fiscal year.
For Sole Service Suppliers and Individual Proprietorship, minimum net free foreign exchange incomes decisive factor is $10,000 in the previous fiscal year.
To get the profits, the service supplier is requisite to have an active IEC Code at the time of providing such services.
In an instance the IEC holder is the manufacturer of goods as well as the service rendered, then the foreign exchange incomes and Entire Expenses/Payment/Remittances need to be taken into consideration for service supplier only.
The different services entitled to demand advantages under the SEIS. A start-up firm that specializes in SEIS and other financial services advisory could help you make the most of the scheme.
SERVICES ELIGIBLE TO REQUEST ADVANTAGES UNDER THE SEIS SCHEME:
The different services entitled to demand advantages under the SEIS scheme are mentioned as following:
- HEALTHCARE SERVICES
Includes hospital facilities and other health provisions. SEPC’s directs for Healthcare services including facilities by Nurses, Physiotherapists, Paramedical Personnel, and other Human Health Services.
- LEGAL SERVICES
Definition of Legal Services ought-to include advisory and representation services as well as the doings relating to the administration of justice. According to the WTO services sectoral Classification List (MTN.GNS/W/120), Legal Facilities are included under the Professional Services.
- ACCOUNTING AND AUDITING SERVICES
Auditing can be defined as “the systems and processes responsible for recording and summarizing that information”.
Under the Services Sectoral Classification List (MTN.GNS/W/120), Accounting and Auditing Services come under Professional Services.
- HOTEL AND TOURISM RELATED SERVICES
Tourism and travel linked facilities include services rendered by hotels and restaurants (including catering), travel agencies and tour operator and guides services, and other related services.
- ENVIRONMENTAL SERVICES
As per the WTO Services Sectoral Categorization List (MTN.GNS/W/120), Environmental facilities include sewage services, refuse disposal, sanitation, and similar services, reducing vehicle emissions, noise abatement services, nature and landscape protection services, and other environmental services.
- ENTERTAINMENT SERVICES
Audiovisual services include motion picture, videotape production, and distribution services, motion picture projection services, radio and television transmission services, and sound recording.
- MARITIME TRANSPORT SERVICES
The sector includes access to and use of Port Facilities: Auxiliary Services; and Ocean Transport.
Sub Services of Maritime Transport
- Passengers and Freight Transportation
- Rental of Vessels with Crew
- Maintenance and Repair of Vessels
- Pushing and Towing Services
- Supporting Services for Maritime Transport
- DISTRIBUTION SERVICES
Includes commission agents services, Wholesale trade services, retailing services, and Franchising.
Sub Services of Distribution Services:
- Commission Agents’ services
- Wholesale Trade Services
- Retailing Services
- ARCHITECTURAL SERVICES
Architectural Services of the United Nation “Provisional Central Product Classification”, comprising five sub-heads:
- Advisory and pre-design architectural services.
- Architectural design services.
- Contract administration services.
- Combined architectural design and contract administration services.
All other services that entail the proficiency of architects, in the arrangements of promotional materials, drawings, constant site illustration throughout the construction, the stipulation of operating manuals, etc. Experts can help you identify if your area of work in the fit here; get in touch with professionals who can guide you the right way.
- EDUCATIONAL SERVICES
Includes primary, secondary, post-secondary and adult education services, specialized pieces of training in sports.
- ADVERTISING SERVICES
Includes Sale or leasing services of advertising space; planning, creating and placement services of advertising and other advertising services.
STATISTICS ON SEIS SCRIPS
Throughout the Fiscal Year 2018, a total of 5569 numbers of SEIS scrips with a sum of 3475 Crores has been demand. Maximize your benefits with the guidance of experts in the space.
Important Sites you can visit for more information are:
Talk to our experts to assist you in availing the benefits of this scheme. Reach out to us at: [email protected] | 044-46315959.