Service Exports from India Scheme (SEIS) for Exporters

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- Boost to SMEs and MSMEs 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 Excise Duty Custom Duty Service Tax Settlement of Default of EPCG claims etc Benefits of SEIS Scrips Substantial Reward  ( Between 3-5% of Net Exports ) Freely Tradeable Easily Transferable 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: - Any Equity or debt participation, receipts of  loans, donations etc. not related to rendering of services will not qualify for SEIS 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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Service Exports from India Scheme (SEIS) for Exporters

Saurabh Jain
Blog
26th Feb, 2018
Service Exports from India Scheme (SEIS) for Exporters

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-

  1. Boost to SMEs and MSMEs

  2. Creation of Jobs

  3. Stable & strong currency

  4. 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

  1. Excise Duty

  2. Custom Duty

  3. Service Tax

  4. Settlement of Default of EPCG claims etc

Benefits of SEIS Scrips

  1. Substantial Reward  ( Between 3-5% of Net Exports )

  2. Freely Tradeable

  3. Easily Transferable

  4. 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: -

  1. Any Equity or debt participation, receipts of  loans, donations etc. not related to rendering of services will not qualify for SEIS

  2. Any service which is not mentioned in DFGT circular on SEIS

For more details/clarity reach out to Saurabh @ savedesk.co

Saurabh
Blog Author

 

One of the Co-founders, Saurabh serves as an active advisor to several SaveDesk’s portfolio companies and also works closely with them to improve business performance, select key management personnel, ensuring statutory and financial oversight and compliance supported by various agreements.Prior to SaveDesk, Saurabh spent seven years with Standard Chartered Bank commercial banking team as an associate director, where he was responsible for client management,financial analysis, portfolio management and large ticket deal’s execution in South India. Saurabh holds an MBA in Marketing from the Institute of Technology Management, and graduated with Honors degree in Electrical and Electronics Engineering from RGPV, Madhya Pradesh

 

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