Services Exports Incentive Scheme (SEIS)

Services Exports Incentive Scheme (SEIS)

In order to boost Services exports, the Govt. of India has introduced this scheme. The scheme covers services provided from India to any other country and services provided to the foreign consumer. The incentive is given in the form of a duty scrip. The amount of incentive ranges from 3 per cent to 7 per cent of Net Foreign Exchange depending on the nature of service.

The Duty Credit Scrips can be used for the following purposes.

1. ♦ Payment of customs duties on import of inputs or goods, safeguard duty, anti-dumping duty and any other customs duty under FTP 2015-20
2. ♦ The scrips can also be transferred.

Net Foreign Exchange:
Net Foreign Exchange is the difference between gross earnings of foreign exchange and total expenses/payment/remittances of foreign exchange in the financial year.
If the IEC holder is a manufacturer of goods as well as service provider, then the foreign exchange earnings and Total expenses / payment / remittances shall be taken into account for service sector only.

Modes of Service Delivery Eligible for SEIS
Mode1- Cross border trade: Supply of a service from India to any other country.
Mode 2-Consumption abroad: Supply of a service from India to service consumer(s)of any other country in India.

Modes of Service Delivery Ineligible for SEIS
Mode 3 – Commercial Presence: Supply of a „service‟ from India through commercial presence in any other country.
Mode 4- Presence of natural persons: Supply of a service from India through the presence of natural persons in any other country.

Important to remember

• Service provider should have minimum net free foreign exchange earnings of US$15,000 in year of rendering service to be eligible for Duty Credit Scrip. For Individual Service Providers and sole proprietorship, such minimum net free foreign exchange earnings criteria would be US$10,000 in year.
• If the IEC holder is a manufacturer of goods as well as service provider, then the foreign exchange earnings and Total expenses / payment / remittances shall be taken into account for service sector only.
• Service provider shall have to have an active IEC at the time of rendering such services for which rewards are claimed.

• Duty Credit scrip is valid for 24 months
• There is a provision for splitting the scrips, but the minimum value of scrips should be Rs. 5 lakhs

Notified Services which are eligible for SEIS

• 1. Professional Services

1. Legal Services
2. Accounting, auditing and bookkeeping services
3. Taxation Services
4. Architectural Services
5. Engineering Services
6. Integrated Engineering Services
7. Urban Planning and Landscape architectural services
8. Medical and Dental Services
9. Veterinary Services
10. Services provided by Mid-wives, nurses, physiotherapists and paramedical personnel

• 2. Research and Development Services

1. Services on Natural Sciences
2. Services on Social Sciences and Humanities
3. Interdisciplinary Services

• 3. Rental/ Leasing Services without Operators

1. Relating to Ships
2. Relating to Aircrafts
3. Relating to other Transport Equipments
4. Relating to other Machinery and Equipment

• 4. Audiovisual Services

1. Motion Picture and Video Tape Production and Distribution Centre
2. Motion Picture Projection Service
3. Radio and Television Service
4. Radio and Television Transmission Service
5. Sound Recording

• 5. Construction and Related Engineering Service

1. General Construction Work for Building
2. General Construction Work for Civil Engineering
3. Installation and Assembly Work
4. Building Completion and Finishing Work

• 6. Educational Services

1. Primary Education Services
2. Secondary Education Services
3. Higher Education Services
4. Adult Education

• 7. Environmental Services

1. Sewage Services
2. Refuse Disposal Services
3. Sanitation and Similar Services

• 8. Health and Social Services

1. Hospital Services

• 9. Tourism and Travel Services

1. Hotel
2. Restaurants
3. Travel Agencies and Tour Operator Services
4. Tourist Guide Services

• 10. Recreational, Cultural and Sporting Services

• 11. Entertainment Services (incl. Theatre, Live Band and Circus Services)

1. New Agency Services
2. Libraries, Archives, Museums and other Cultural Services
3. Sporting and other recreational Services

• 12. Transport and Auxiliary Services

1. Passenger Transportation
2. Freight Transportation
3. Rental of Vessels with Crew
4. Maintenance and Repair of Vessels
5. Pushing and Towing Services
6. Supporting Services for Maritime Transport
7. Rental of Aircraft with Crew
8. Maintenance and Repair of Aircraft
9. Airport Operations and Ground Handling
10. Rental of Commercial Vehicles with Operator
11. Maintenance and Repair of Road Transport Equipment
12. Supporting Services for Road Transport Equipment
13. Cargo Handling Services
14. Storage and Warehouse Services
15. Freight Transport Agency Services

• 13. Other Business Services

1. Advertising Services
2. Market Research and Public Opinion Polling Services
3. Management Consulting Service
4. Services related to Management Consulting
5. Technical Testing and Analysis Service
6. Services incidental to Agriculture, Hunting and Forestry
7. Services incidental to fishing
8. Services incidental to mining
9. Services incidental to manufacturing
10. Services incidental to energy distribution
11. Placement and Supply services of personnel
12. Investigation and Security
13. Related Scientific and Technical Consulting Service
14. Maintenance and Repair of Equipment(not including Maritime Vessels, aircraft or other Transport Equipment)
15. Building – Cleaning Services
16. Photographic Services
17. Packaging Services
18. Publishing
19. Convention Services