TaxTMI 
TaxTMI 
Service Exports from India Scheme - Foreign Trade Policy 2015-2020
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....ervice Exports from India Scheme - Foreign Trade Policy 2015-2020<br>By: - CA Madhav Kalani<br>Customs - Import - Export - SEZ<br>Dated:- 18-9-2015<br><br>Introduction * Service Exports from India Scheme (in known as SEIS) has been announced by the Government in the new Foreign Trade Policy 2015-2020, w.e.f. 1.4.2015. * It has replaced Served From India Scheme (SFIS) which was available under ....
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....the Foreign Trade Policy 2009-2014. Features of the Scheme at a glance * The scheme has come into effect from 01.04.2015 i.e. the rewards are admissible on exports of notified services on or after 01.04.2015. * It applies to 'Service Providers located in India' instead of 'Indian Service Providers'. * The scheme provides for rewards, in the form of Duty Credit Scrips, to Service providers p....
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....roviding notified services (Notified by the Public Notice No. 3/2015-2020, dated 1.4.2015) from India, regardless of the constitution or profile of the service provider. * The present rates of reward are 3% and 5% of Net Foreign Exchange Earned. * The scheme has removed various kind of restrictions on use of scrip issued under this scheme, which are freely transferable. * Scrips can be used ....
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....for payment of - * Customs duties for import of inputs or goods including capital goods, except items listed in Appendix 3A; * Payment of excise duties on domestic procurement of inputs or goods, including capital goods and * Payment of service tax on procurement of services * Payment of customs duty and composition fee in case of Export Obligation defaults. * Debits under Duty Credit Sc....
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....rips are eligible for CENVAT credit or drawback. However, Basic custom duty paid through debit are eligible for drawback. * Certain services categories are specified as not eligible for benefit under the Scheme (Para 3.09 of the Policy). * The services and rates of rewards notified are applicable for services export made between 01.4.2015 to 30.09.2015 only. The list of services/rate is subjec....
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....t to review with effect from 01.10.2015. Eligibility Criterion for Reward under the Scheme * Service Providers of notified services must be located in India. * However, only Services rendered in - Mode I: Cross Border Trade - Supply of a 'service' from India to any other country and Mode-2: Consumption abroad - Supply of a 'service' from India to service consumer(s) of any other country in ....
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....India, are eligible. * Provision of service through - Mode 3 - Commercial Presence - i.e. Supply of a 'service' from India through commercial presence in any other country and Mode 4 - Presence of natural persons i.e. Supply of a 'service' from India through the presence of natural persons in any other country, is not eligible for reward under the scheme. * The notified services and rates of....
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.... rewards are listed in Appendix 3D. * Service provider should have minimum net free foreign exchange earnings of US$15,000 in preceding financial year for eligibility under the Scheme. But for Individual Service Providers and sole proprietorship, it is US$10,000 in preceding financial year. * Scheme provides for specifying a list of services in Appendix 3E, in case of which service charges ear....
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....ned in Indian Rupees shall be treated as receipt in deemed foreign exchange as per RBI guidelines. The Appendix is yet to be notified. * Net Foreign Exchange earnings for the scheme is defined as under: Net Foreign Exchange = Gross Earnings of Foreign Exchange minus Total expenses/payment/remittances of Foreign Exchange by the IEC holder, relating to service sector in the Financial year. E.g. ....
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....In case of IEC holder being manufacturer of goods as well as service provider, then the foreign exchange earnings and total expenses/payment/remittances for service sector shall only be taken into account. * To claim reward, Service provider is required to have an active IEC at the time of rendering such services. Important Procedural Aspects of the Scheme Filing of Application * An applicat....
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....ion for grant of duty credit scrip for eligible services rendered shall be filed online for a financial year on annual basis in ANF 3B using digital signature. * RA shall process the application received online after due scrutiny. Transitional Arrangement * Upto 30.6.15, applicants in respect of exports on which SFIS is claimed has following choices:- * To file applications in the manner pr....
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....escribed in the previous policy(ies) * To file application under new procedure prescribed (under HBP 2015-2020) for SEIS * From 1.7.2015, all applications to be submitted under new procedure only. Last date of filing of application for Duty Credit Scrips * 12 months from the end of relevant financial year of claim period. * Wherever any application complete in all respects is received aft....
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....er expiry of last date for submission of such application, the application may be considered after imposing a late cut in the following manner: i. Application received after the expiry of last date but within six months from the last date 2% ii. Application received after six months from the prescribed date of submission but not later than one year from the prescribed date 5% iii. Applicat....
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....ion received after 12 months from the prescribed date of submission but not later than 2 years from the prescribed date 10% Validity period of Duty Credit Scrips and Revalidation * Duty Credit Scrip to be valid for a period of 18 months from the date of issue and must be valid on the date on which actual debit of duty is made. * Revalidation of Duty Credit Scrip shall not be permitted unless....
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.... validity has expired while in custody of Customs Authority/RA.<br> Scholarly articles for knowledge sharing by authors, experts, professionals ....