Service Exports from India Scheme (SEIS): A Comprehensive Guide
Introduction
The Service Exports from India Scheme (SEIS) is a major initiative by the Government of India aimed at encouraging the export of services. This scheme was introduced under the Foreign Trade Policy (FTP) 2015-2020 and has significantly contributed to the growth of India’s service export sector.
What is SEIS?
SEIS is a duty credit scrip scheme that rewards service providers with duty credit scrips based on the net foreign exchange earned from exporting notified services. These scrips can be used to offset import duties on inputs or goods, including capital goods. The value of the scrips typically ranges from 3% to 5% of the net foreign exchange earned.
Objectives of SEIS
The primary objective of SEIS is to promote the export of services from India. By providing incentives, the scheme aims to offset infrastructural inefficiencies and associated costs, making Indian services more competitive in the global market.
Eligibility Criteria
To be eligible for SEIS, service providers must meet certain criteria, including having an Import Export Code (IEC) and complying with the provisions of the Foreign Trade Policy and Handbook of Procedures. The scheme covers a wide range of services, including professional services, technical services, and management consulting services.
Rewards under SEIS
The rewards under SEIS are provided in the form of duty credit scrips, which can be used for:
- Payment of Basic Customs Duty and Additional Customs Duty on imported inputs or goods
- Payment of Central Excise Duties on domestically procured inputs or goods
- Payment of Basic Customs Duty and Additional Customs Duty on imported capital goods
How to Apply for SEIS
Step 1: Register on DGFT Portal
- Visit the SEIS Official Portal.
- If you do not have an account, you will need to create one by registering on the portal.
- Once registered, log in to your account using your credentials.
Step 2: Prepare the Required Documents
- Import Export Code (IEC)
- Digital Signature Certificate (DSC)
- Profile of Service Provider on DGFT Portal
- Authorization Letter (if applicable)
- Details of Service Exports
Step 3: Fill the Application Form
- Navigate to the “Services” section on the DGFT portal.
- Select the “SEIS” option and proceed to fill the application form (ANF 3B).
- Enter all required details such as IEC, service details, and net foreign exchange earned.
- Upload the necessary documents as per the guidelines.
Step 4: Submit the Application
- Review the application form to ensure all details are correct.
- Submit the application form electronically through the DGFT portal.
- Pay the required application fee online.
Step 5: Track Application Status
- After submission, you can track the status of your application on the DGFT portal.
- You will receive updates and notifications regarding the progress of your application.
Step 6: Receive Duty Credit Scrips
- Once the application is approved, you will receive the SEIS duty credit scrips electronically.
- You can then use these scrips to offset import duties on inputs or goods.
Implementation and Administration
SEIS is notified by the Directorate General of Foreign Trade (DGFT) and implemented by the Ministry of Commerce and Industry. The scheme has been designed to be user-friendly, with provisions for online application and tracking of scrips.
Recent Developments
In recent years, the government has made several changes to enhance the effectiveness of SEIS. One significant change is the removal of GST on the sale of duty credit scrips, making them more attractive to service providers. Additionally, the scheme is set to be replaced by the Remission of Duties and Taxes on Exported Products (RoDTEP) scheme from January 1, 2021.
Conclusion
The Service Exports from India Scheme (SEIS) has played a crucial role in promoting India’s service exports by providing incentives to service providers. With its user-friendly implementation and attractive rewards, SEIS has helped Indian service providers compete effectively in the global market.
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