What is SEIS ?
In order to promote Exports from India, the government of India has launched Service Exports from India Scheme (SEIS) which is rewarded in the form of duty scrip credit. These Scrips are rewarded for all eligible exports from India, which can be traded against any custom fee-related activity.
Why SEIS?
As we all know, India is a trade deficit country i.e. our imports are greater than exports, this deficit leads to the artificial demand of dollars in India. Advantages of boost to Exports are as follows-
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Boost to SMEs and MSMEs
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Creation of Jobs
-
Stable & strong currency
-
Overall Economic and Infrastructure growth
What are the Eligibility Criteria :-
For an exporter in India to be eligible for SEIS scheme scrips apart from companies having IEC code, the following foreign exchange criteria should be met-
S.No |
Incorporation Type |
Minimum Foreign Exchange In FY |
1 |
Partnership Firm/LLP/Company |
USD 15000 |
2 |
Proprietorship Firm |
USD 10000 |
Net foreign exchange earnings for the SEIS scheme is calculated as:
Net Foreign Exchange = Gross Earnings of Foreign Exchange – Total Expenses or payment or remittances of Foreign Exchange.
Uses of Credit Scrip
Duty credit scrips can be used for the settlement of
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Excise Duty
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Custom Duty
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Service Tax
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Settlement of Default of EPCG claims etc
Benefits of SEIS Scrips
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Substantial Reward ( Between 3-5% of Net Exports )
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Freely Tradeable
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Easily Transferable
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Valid for 18 Months from date of Issue
Exports qualified for SEIS Scheme: -
More details about export activities qualified for SEIS scrip claims can be found here http://dgft.gov.in/exim/2000/FTP-2017/ftp17-051217.pdf
Ineligible Export service for SEIS: -
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Any Equity or debt participation, receipts of loans, donations etc. not related to rendering of services will not qualify for SEIS
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Any service which is not mentioned in DFGT circular on SEIS
For more details/clarity reach out to Saurabh @ savedesk.co
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