Exports play a crucial role when it comes to boosting a country’s economy. Hence, governments all over the world offer some inducements to their commerce houses to increase their exports. These inducements are given for shipping services as well as goods. However, we will only take the former option into consideration.
Service Export from India Scheme or SEIS involves an incentive centred ingenuity from the state. It basically means that a few incentives will be given to all the service providers based in India in the range of 3% to 5%. A service provider may even assess extra assistance while still relishing the perks given under Goods and Services Tax.
The SEIS scheme will come into force from the moment it’s the policy is announced.
Steps for applying
- The application regarding grant of duty credit scrip for qualified services can only be submitted via the online portal for a particular financial year using digital signature.
- The officer will be determined only at the beginning of the financial year.
- The maximum time period for filing an application is for only 12 months starting from the termination of a financial year.
- Once the selected option is implemented, no permission can be approved for alteration in entitlements.
- Aspirants will be provided with an option for opting the Jurisdictional Regional Officer either on the basis of Corporate office, Registered office, Head office or Branch office address permitted under IEC.
Who is suitable for the scheme?
The amenity workers of the notified areas are eligible under the SEIS scheme. The given points explain this aspect in detail.
- Minimum foreign exchange earning criteria which is free of cost is $10000 for those who give out individual services and sale proprietorships, in the preceding financial year.
- A minimum net free foreign exchange of about $15000 shall be possessed by the service trader earnings in the preceding financial year.
- The foreign exchange earnings are only for those who trade services.
- An operated IEC code must be maintained with every service trader when any services are being negotiated.
Additionally, services which are only appropriate for consideration under this policy: Only those which are presented in mode 1 (cross-border trade) and mode 2 (consumption abroad).
At last, make sure that the active Import Export code (IE code) should be available to provide such amenities for which recompenses are appealed for.
Moreover, according to the Foreign Trade Policy of India 2015-2020, service suppliers can be reported under SEIS, with the requisite contractual terms.