In New Foreign Trade Policy 2015-2020, with effect from 01.04.2015 Service Exports from India Scheme to promote exports from India. This Scheme not only replaces the old scheme announced in trade circular policy 2009-2014 under SFIS (Served from India Scheme ), but also rationalize the various kind of restriction imposed on end use of scrips . Unlike earlier scheme, this scheme also includes exports from SEZ.
Under this scheme, exporters are rewarded with tradeable custom duty scrips credit for all notified service exports rendered on or after 01.04.2015
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
As per trade policy circular dated 2015, claim period for receiving these scripts would be valid for 5 years, i.e. exports done during 2015-2020 would be eligible for claiming this incentive form government of India.
All service exports under approved/recognised list of activity by government of India are entitle to claim the SEIS benefit.
An Exporter should have an active Import Export code issued by DGFT for the period of claims
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.
Total Claims percentage can vary somewhere between 3-5% of export value, depending upon the list of activities approved by government of India.