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INCENTIVE UNDER SERVICE EXPORT FROM INDIA SCHEME(SEIS SCHEME)
WHEN CAN YOU CLAIM THE INCENTIVE?
Under SEIS scheme, the government gives incentive in the range of 5% to 7% to all eligible service providers who are providing the services from India to Organisations outside India
- Service provider should have minimum foreign exchange earnings of US$ 15,000 from export of service.
- For Individual Service Providers and sole proprietorship, such minimum foreign exchange earnings criteria would be US$10,000 in financial year.
- Eligible service along with the rate of incentive have been given at the end,
DOCUMENTS REQUIREMENT
- All export invoices of the financial year
- FIRC copies of all export invoices
- Certified copy of IEC Certificate
- Details of expenses incurred in foreign currency
- Brief description of the services exported
- RCMC certificate
- Valid Class 3 DGFT Digital Signature
- CA Certificate
ELIGIBLE SERVICES
| 1 | BUSINESS SERVICES | |
| S. No. | SECTORS | percent of incentive from 1.11.2017 onwards |
| A. | Professional services | |
| Legal Services | 7 | |
| Accounting, auditing and book-keeping services | 7 | |
| Taxation services | 7 | |
| Architectural services | 7 | |
| Engineering services | 7 | |
| Integrated engineering services | 7 | |
| Urban planning and landscape architectural services | 7 | |
| Medical and dental services | 7 | |
| Veterinary services | 7 | |
| Services provided by midwives, nurses, physiotherapists and paramedical personnel | 7 | |
| B. | Research development services | |
| R&D services on natural sciences | 7 | |
| R&D services on social sciences and humanities | 7 | |
| Interdisciplinary R&D services | 7 | |
| Rental/Leasing services without operators | ||
| Relating to ships | 7 | |
| Relating to aircraft | 7 | |
| C | Relating to other transport equipment | |
| Relating to other machinery and equipment | 7 | |
| D. | Other business services | |
| Advertising services | 5 | |
| Market research and public opinion polling services | 5 | |
| Management consulting service | 5 | |
| Services related to management consulting | 5 | |
| Technical testing and analysis services | 5 | |
| Services incidental to agricultural, hunting and Forestry | 5 | |
| Services incidental to fishing | 5 | |
| Services incidental to mining 5115 | 5 | |
| Services incidental to manufacturing 885 | 5 | |
| Services incidental to energy distribution | 5 | |
| Placement and supply services of personnel | 5 | |
| Investigation and security | 5 | |
| Related scientific and technical consulting Services | 5 | |
| Maintenance and repair of equipment (not 8861-8866 including maritime vessels, aircraft or other transport equipment) | 5 | |
| Building cleaning services | 5 | |
| Photographic services | 5 | |
| Packaging services | 5 | |
| Printing, publishing | 5 | |
| Convention services | 5 |
| 2 | COMMUNICATION SERVICES | |
| Audiovisual services | ||
| Motion picture and video tape production and distribution service | 7 | |
| Motion picture projection service | 7 | |
| Radio and television services | 7 | |
| Radio and television transmission services | 7 | |
| Sound recording. | 7 |
| 3 | CONSTRUCTION & RELATED ENGINEERING SERVICES | |
| General construction work for building | 7 | |
| General construction work for civil engineering | 7 | |
| Installation and assembly work | 7 | |
| Building completion and finishing work | 7 |
| 4 | EDUCATIONAL SERVICES | |
| Primary education services | 7 | |
| Secondary education services | 7 | |
| Higher education services | 7 | |
| Adult education | 7 |
| 5 | ENVIRONMENTAL SERVICES | |
| Sewage services | 7 | |
| Refuse disposal services | 7 | |
| Sanitation and similar services | 7 |
| 6 | HEALTH-RELATED AND SOCIAL SERVICES | |
| Hospital services | 7 |
| 7 | TOURISM AND TRAVEL-RELATED SERVICES | |
| A. Hotels and Restaurants (including catering) | ||
| Hotel | 5 | |
| Restaurants (including catering) | 5 | |
| Travel agencies and tour operators services | 7 | |
| Tourist guides services | 7 |
| 8 | RECREATIONAL, CULTURAL AND SPORTING SERVICES (other than audiovisual services) | |
| Entertainment services (including theater, live bands and circus services) | 7 | |
| News agency services | 7 | |
| Libraries, archives, museums and other cultural services | 7 | |
| Sporting and other recreational services | 7 |
| 9 | TRANSPORT SERVICES | |
| Maritime Transport Services | ||
| a. Passenger transportation | 7 | |
| b. Freight transportation | 7 | |
| c. Rental of vessels with crew | 7 | |
| d. Maintenance and repair of vessels | 7 | |
| e. Pushing and towing services | 7 | |
| f. Supporting services for maritime transport | 7 | |
| B | B. Air transport services | |
| a. Rental of aircraft with crew | 7 | |
| b. Maintenance and repair of aircraft c. Airport operations and ground handling | 7 | |
| C | C. Road Transport Services | |
| a. Passenger transportation | ||
| b. Freight transportation | 7 | |
| c. Rental of commercial vehicles with operator | 7 | |
| d. Maintenance and repair of road transport equipment | 7 | |
| e. Supporting services for road transport services | 7 | |
| D | D. Services auxiliary to all modes of transport | |
| a. Cargo handling services | 7 | |
| b. Storage and warehouse services | 7 | |
| c. Freight transport agency services | 7 |
FAQs
In order to claim reward under the scheme, Service provider shall have to have an active IEC at the time of rendering such services for which rewards are claimed.
- Services rendered in the manner of Mode 1(Cross Border Trade) & Mode 2(Consumption abroad) above are only eligible for the SEIS scheme.
- Supply of a Service through Mode 3: Commercial Presence i.e. Supply of a service from India through Commercial Presence in any other Country and Mode 4: Presence of Natural persons in any other country – not eligible for reward under this scheme.
- Service providers of notified services are only eligible for SEIS Scheme. For Example – Software Services exporters are not eligible for SEIS.
- A Company, LLP or Partnership should have a minimum of 15,000 USD net free foreign exchange earnings in the year of rendering services to be eligible to apply for SEIS Scheme.
- Similarly a minimum net free foreign exchange earnings of 10,000 USD for Individuals and sole proprietors.
- SEZ Units are also eligible for SEIS Scheme. However, EOU, STP, BHTP, EHTP Units are not eligible to claim SEIS benefits.
- Some eligible services are allowed to accept Indian rupees towards their service charges which shall be deemed to be foreign exchange. A list of such services is given in Appendix 3E.
Net Foreign exchange earnings for the scheme are defined as under: Net Foreign Exchange = Gross Earnings of Foreign Exchange minus Total expenses / payment / remittances of Foreign Exchange by the IEC holder, relating to service sector in the Financial year.
The rewards under SEIS shall be admissible for export of services rendered on or after 01.04.2015, i.e. the date of notification of the Foreign Trade Policy 2015-20.
Duty Credit Scrips issued on or after 01.01.2016 under chapter-3 shall be valid for a period of 24 months from the date of issue and must be valid on the date on which actual debit of duty is made. (Public Notice No. 33/2015-2020 dated 23.10.2017)