India Entry & Business Startup Consultings

Service Export Benefits

The SEIS is a scheme that provides an incentive to the exporters of services. The incentive under the scheme is provided in the form of duty credit scrips. These duty credit scrips issued by the department are valid for a period of 24 months from the date of issue and are freely transferable.

The foremost purpose of SEIS is to promote and increase the export of notified services from India. This scheme is only of the services provided in the manner as specified in Para 9.51(i) [Mode1- Cross Border Trade] and 9.51(ii) [Mode 2- Consumption Abroad] of FTP 2015-20. 

The present rates of reward are 5% and 7% on the net foreign exchange earned by the company (Net free foreign exchange earnings = Gross Earnings in foreign exchange – total expenses/payment/remittances in foreign exchange). 

Under SEIS, the received duty credit scrips can be utilized in different ways like for the payment of customs duty, additional customs duty that are specified under sections 3(1), 3(3), and 3(5) of the Customs Tariff Act, 1975 (except for the items listed in Appendix 3A), safeguard Duty, anti-dumping duty, etc. Such scrips cannot be used for the payment of taxes like GST and education cess. To claim the incentive under this scheme, the service exporter must have an active IEC at the time of providing services for which the benefits are claimed. 

The notified services under this scheme include legal services, accounting, auditing, and book-keeping services, engineering services, medical and dental services, R&D services on natural sciences, advertising services, management consulting service, technical testing and analysis, tourist guide services, hotel and restaurants (including catering), entertainment services (including theatre, live bands, and circus services, news agency services, educational services, health-related and social services, general construction for building work, installation and assembly work, sporting and other recreational services, and many more. Although, the foreign exchange receipts that are not earned for rendering of notified services would not be taken into consideration for entitlement. Hence, any other sources like donations, receipts of repayments of loans, equity or debt participation, or any other inflow of foreign exchange earnings that are not related to rendering of service, they all would be ineligible. 

How ASC Helps in Service Exports Benefits

Our team of professionals understands India's business and regulatory environment and stays constantly abreast with the various policies offering incentives or benefits issued by the Government of India. We have extensive experience in advising our clients on how to claim the various incentives offered by the Government under various schemes. 

We assist our clients in the following manner:

  1. Advisory on the eligibility of the company for claiming SEIS under the Government policy.
  2. Identification of services eligible for various export incentives.
  3. Computation of the number of export benefits.
  4. Providing start-to-end service in an effectively structured format to cut down the operational timeline.
  5. Preparation and filing of the application online for claiming export benefits in the required forms.
  6. Representation before the DGFT on behalf of the service exporter for providing the necessary explanation to dispose of the case.
  7. Following up with the DGFT till the time export benefit is actually claimed.
  8. Assistance in making timely compliances under the Scheme availed by the exporter of services.
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