Service Exports from India Scheme(SIES) was introduced under Foreign Trade Policy 2015-20. This is scheme have major focus to give benefits to companies who are dealing in export of services from India. This scheme benefits can be availed only by the companies who had done exports from India. The new SEIS scheme expands its scope to the companies which was registered under the Special Economic zone SEZ. This scheme give benefit of between 3 % to 7 % of net foreign exchange eared by way of duty credit script. In this article we explained How to apply Service Export India Scheme SEIS.
Net Foreign Exchange = Gross Earnings of Foreign Exchange – Total Expenses or payment or remittances of Foreign Exchange.
Service exporter shall get duty credit scrip under the Service export India Scheme at notified rates on net foreign exchange earning. This script is issued by the DGFT government department after clarification of SEIS documents. This scrip can be utilized for payment of Basic customs duty or it can be sold to buyer who can utilized script.
Example : – ABC Ltd who have SEIS scrip of Rs. 15 lac , and they are not willing to utilize SEIS Scrip for import basic customs duty. Where as XYZ Ltd is looking for import and can buy this scrip at discounted rate with negotiation and pay ABC Ltd Say Appx. Rs. 14.85 Lac.
Service Export from India Scheme (SEIS) Rate of Reward Public Notification 45/2015-2020 dated 05 December 2017. latest SEIS Rates
The following services and rates of rewards were applicable for services export
Professional Services – 7% Rate of Reward