Export service from India schemes is reward-based initiatives by the government of India also known as SEIS. The scheme aims to boost the local economy and at the same time elevate the export of notified services. In the past two decades, the service trade of India has become a major driver of export.
Our country has emerged as one of the fastest-growing nations in terms of global service trade. According to a survey, the service sector exports contributed almost 54.17 percent of the gross value added (GVA) in the financial year 2018-19.
Export Scheme Rate
The export scheme has been introduced in the country as a part of the foreign trade policy in the year 2015. Under this scheme, the Indian service providers would get 3 – 5 percent incentives irrespective of the organization’s nature. This percentage rate is calculated on net foreign exchange earned.
No money is been given as an incentive return but instead, credit scrip which is duty-free is given. This scrip can be used to pay various taxes such as customs duty, service tax on procurement of services, excise duty, that are being levied on services and goods. This credit scrip is valid for 18 months from the issued date.
Below mentioned are the eligibility criteria’s for claiming SEIS incentives
Eligible export service from India
Services provided in cross-border trade or consumed abroad.
Not eligible export service from India
Supply through Commercial presence or through personal presence.
- When you have a company, a limited liability partnership, or a partnership firm, for being eligible the provider of service need to have a minimum of $ 15,000’s net free foreign exchange earnings.
- When you are a sole proprietorship or individual service provider, for being eligible the provider of service need to have a minimum of $ 10,000’s net free foreign exchange earnings.
- It would not be possible to claim for it unless one has an active IEC code at the time of rendering the service.
Below mentioned is the procedure for filing application for claiming the incentive
- 3B has to be filled online using a digital signature to avail of duty credit dividends.
- Under this scheme, the last date for filing of service export incentive is 12 months from the previous financial year’s end.
- The applicant has an option to select a Jurisdictional regional officer. Who endorsed on IEC site to submit an application but this option show only, When it opts for the start of the financial year.
Below mentioned rate of incentives offered service to exporters under the SEIS scheme
5 Percent
- Professional services
- Auxiliary and Transport services
- R & D services
- Environmental Services
- Leasing or Rental service without operation
- Sporting, Cultural and Recreational services
- Engineering services (construction and related work)
- Audiovisual Services
- Social and Health Services
3 percent
- Tourism and Travel Service
- Advertising Service
- Management Consulting Service