Service Exports from India Scheme (SEIS)

Objective of the scheme is to encourage and maximise export of notified services from India. The notified services and rates of rewards are listed in Appendix 3D. Reward is calculated on the net foreign exchange earned.

The reward is the form of “Duty Credit Scrips”. The Duty Credit scrips can be used for

1. Payment of basic customs duty and Additional Customs duty for import of goods
2. Payment of Central Excise Duty on domestic procurement of goods.
3. Payment of Custom Duties in case of Export Obligation defaults.
4. Payment of Composition fees
5. Payment of Application Fee
6. Payment of Value Shortfall in Export Obligation

Duty Credit Scrips are freely transferable, which means these can be sold to a different entity as well.

Eligibility:

1. Service Provider should have an active IEC at the time of rendering services for which the rewards are claimed
2. Services should be rendered in the following manner
   1. Mode 1 – Cross Border Trade: Supply “service” from India to any other country/li>
   2. Mode 2 – Consumption Abroad: Supply “service” from India to service consumer(s) of any other country in India.
3. Net Free Foreign Exchange Earnings should be minimum of US $15,000 in preceding financial year.
4. For Individual Service Providers and sole proprietorship, minimum Net Free Foreign Exchange should be minimum US $10,000.
5. Services listed in Appendix 3E are only eligible for payment in Indian Rupees Payment of Application Fee

Ineligible Categories:

Foreign exchange earnings such as equity or debt participation, donations, receipts of repayment of loan etc. and any other inflow of foreign exchange, unrelated to rendering of service.

Validity:

Duty Credit Scrips will be valid for 24 months from the date of Issue. Revalidation will not be allowed by the Dept.

Time Frame for Applying for SEIS:

1. 12 months from end of relevant Financial Year of claim period.

Objective

Objective of Service Exports from India Scheme (SEIS) is to encourage and maximize export of notified Services from India.

Eligibility

1. Service Providers of notified services, located in India, shall be rewarded under SEIS. Only Services rendered in the manner as per Para 9.51(i) and Para 9.51(ii) of this policy shall be eligible. The notified services and rates of rewards are listed in Appendix 3D.
2. Such service provider should have minimum net free foreign exchange earnings of US$15,000 in preceding financial year to be eligible for Duty Credit Scrip. For Individual Service Providers and sole proprietorship, such minimum net free foreign exchange earnings criteria would be US$10,000 in preceding financial year.
3. Payment in Indian Rupees for service charges earned on specified services, shall be treated as receipt in deemed foreign exchange as  per guidelines of Reserve Bank of India. The list of such services is indicated in Appendix 3E.
4. 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.
5. If the IEC holder is a manufacturer of goods as well as service provider, then the foreign exchange earnings and Total expenses / payment / remittances shall be taken into account for service sector only.
6. 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.

Ineligible categories under SEIS:

Foreign exchange remittances other than those earned for rendering of notified services would not be counted for entitlement. Thus, other sources of foreign exchange earnings such as equity or debt participation, donations, receipts of repayment of loans etc. and any other inflow of foreign exchange, unrelated to rendering of service, would be ineligible.

Entitlement under SEIS
Service Providers of eligible services shall be entitled to Duty Credit Scrip at notified rates (as given in Appendix 3D) on net foreign exchange earned.

Remittances through Credit Card and other instruments for MEIS and SEIS

Free Foreign Exchange earned through international credit cards and other instruments, as permitted by RBI shall also be taken into account for computation of value of exports.

Effective date of schemes (SEIS)

The schemes shall come into force with effect from the date of notification of this Policy, i.e. the rewards under SEIS shall be admissible for exports made/services rendered on or after the date of notification of this Policy.

Special Provisions

1. Government reserves the right in public interest, to specify export products or services or markets, which shall not be eligible for computation of entitlement of duty credit scrip.
2. Government reserves the right to impose restriction / change the rate/ceiling on Duty Credit Scrip under this chapter.
3. Government may also notify goods in Appendix 3A which shall not be allowed for debiting through Duty Credit Scrips in case of import.
4. Government may prescribe value cap of any kind for a product(s) or limit total reward per IEC holder under this chapter at any time.

Common Provisions for Exports from India Schemes (MEIS and SEIS)

1. Policy for Service Exports From India Scheme (SEIS) is given in Chapter 3 of FTP
2. An application for grant of duty credit scrip for eligible services rendered shall be filed online for a financial year on annual basis in ANF 3B using digital signature.
3. RA shall process the application received online after due scrutiny.

Common Procedural features applicable to MEIS and SEIS, unless specifically provided for:

Transitional Arrangement
For the goods exported or services rendered up to the date of notification of current Foreign Trade Policy, which were otherwise eligible for issuance of scrip under erstwhile chapter 3 of the earlier Foreign Trade Policy(ies) and scrip is applied on or after the date of notification of current Foreign Trade Policy against such export of goods or services rendered, the application shall be made to Jurisdictional RA in the form with documents as prescribed in the HBP v I 2009-2014.
Applicants shall continue to file applications in respect of FPS/MLFPS/FMS/VKGUY/SFIS/SHIS/IEIS and Agri Infrastructure Incentive Scheme Scrip in the application form and manner prescribed in the corresponding Hand Book of Procedures

Applicant shall have option to choose Jurisdictional RA on the basis of Corporate Office/ Registered Office/Head Office / Branch Office address endorsed on IEC for submitting application/applications under MEIS and SEIS. This option need to be exercised at the beginning of financial year. Once an option is exercised, no change would be allowed for claims relating to that year. To illustrate, if an exporter has chosen RA Chennai for claiming rewards for exports made in 2015-16,then all claims for exports made in 2015-16, irrespective of the date of application shall be made to RA Chennai only.

Jurisdiction for SEIS (Single Application on Annual Basis)

Applicability of Provisions contained in Chapter 2 and 9 of this HBP Provisions contained in Chapter 2 and 9 of this HBP shall apply to MEIS and SEIS.

In case of scrip applied under Service Exports from India Scheme, the applicant can choose any port as port of registration and mention it in the application at the appropriate column. RA will issue the scrip with such port of registration. Such Duty credit scrip needs to be registered at the port of registration of duty credit. Once registered at EDI port, scrip can be automatically be used at any EDI port for import and at any manual port under Telegraphic Release Advise (TRA) procedure. In case port of registration is a manual port, TRA shall be required for imports at any other port.

Procedure to upload documents by Chartered Accountant / Company Secretary / Cost Accountant

1. In order to move towards paperless processing of reward schemes, an electronic procedure is being developed to upload digitally signed documents by Chartered Accountant/Company Secretary/Cost Accountant. Such documents like annexure attached to ANF 3 B, ANF 3C and ANF 3D, which are at present signed by these signatories, can be facilitated by this procedure.
2. Till such time it is made mandatory to upload these annexure digitally, such annexure attached to ANF 3B, ANF3C, ANF3D would continue to be submitted in physical from to RA.
3. Exporter shall link digitally uploaded annexure with his online applications after creation of such facility.

Import from private / public Bonded warehouses

Entitlement can be used for import from private/public bonded warehouses subject to fulfillment of paragraph 2.36 of FTP and terms and conditions of DoR notification.

Re-export of defective / unfit goods

Goods imported which are found defective or unfit for use, may be re- exported, as per DoR guidelines. Where Duty Credit Scrip has been used for imports, Customs shall issue a certificate containing particulars of Scrip used, date of import of re-exported goods and amount debited while importing such goods. Based on this certificate, upon application, a fresh Scrip shall be issued by concerned RA to extent of 98% of debited amount, with same port of registration and valid for a period equivalent to balance period available on date of import of the defective/unfit goods.

Validity period and Revalidation

Duty Credit Scrip 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. Revalidation of Duty Credit Scrip shall not be permitted unless covered under paragraph 2.20(c) of HBP.

Last date of filing of application for Duty Credit Scrips