The Government has introduced the Service Exports from India Scheme (SEIS) w.e.f. 01.04.2015 under the Foreign Trade Policy (FTP), 2015-20 replacing the earlier scheme ‘Served from India Scheme’ under the FTP, 2009-15.

Under Ministry of Commerce,  Foreign Trade Policy comes with various schemes in order to promote Exports from India. Under this initiative FTP under Chapter 3 have SERVICE EXPORT FROM INDIA SCHEME- FOR EXPORT OF SERVICES.

The SEIS is to encourage export of notified services from India. The motto of the scheme is to provide rewards to exporters to offset infrastructural inefficiencies and associated costs involved and to provide exporters a level playing field. Also in order to give boost to exports from SEZ, the FTP has extended the reward scheme to units located in SEZs

In order to lay emphasis on export of services, the Served from India Scheme (SFIS) is replaced by Service Exports from India Scheme (SEIS) .The intention is to provide benefits to all service providers located in India, instead of Indian Service Providers. 

 

THE SEIS SCHEME

Service Providers of notified services, located in India are eligible for the Service Exports from India Scheme (SEIS).

 To be eligible, a service provider (Company / LLP / Partnership Firm) should have a minimum net free foreign exchange earnings of USD 15,000 in the preceding financial year to be eligible for duty credit scrips. For proprietorships or individual service providers, a minimum net foreign exchange earnings of USD 10,000 in the preceding financial year is required to be eligible for the scheme. Also, in order to claim reward under the SEIS scheme, the service provider shall have to have an active IEC Code at the time of rendering such services for which rewards are claimed.

 

Net foreign exchange earnings for the SEIS scheme is calculated as:

 

Net Foreign Exchange =(Gross Earnings of Foreign Exchange)   LESS  

(Total expenses / payment / remittances of Foreign Exchange by the IEC holder, relating to service sector in the financial year).

- 5 to 7 percent of Net foreign exchange is the incentive under SEIS

 

Following mode of providing services has been specified under Para 9.51 of the FTP

1.Supply of a ‘service’ from India to any other country

 (Mode1-Cross border trade) ELIGIBLE

2.Supply of a ‘service’ from India to service consumer(s)of any other country in India

  (Mode 2-Consumption abroad) ELIGIBLE