Objective of Service Exports from India Scheme (SEIS) is to encourage export of notified Services from India.
(1) Service Providers of notified services, located in India, shall be rewarded under SEIS, subject to conditions as may be notified. Only Services rendered in the manner as per Para 9.51(i) and Para 9.51(ii) of this policy shall be eligible. The notified services and rates of rewards are listed in Appendix 3D for SEIS
(2) Such service provider should have minimum net free foreign exchange earnings of US$15,000 in preceding financial year 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 preceding financial year.
(3) Payment in Indian Rupees for service charges earned on specified services, shall be treated as receipt in deemed foreign exchange as per guidelines of Reserve Bank of India. The list of such services is indicated in Appendix 3E.
(4) Net Foreign exchange earnings for the scheme are 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.
(5) 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.
(6) In order to claim reward under the scheme, Service provider shall have to have an active IEC at the time of rendering such services for which rewards are claimed.
Ineligible categories under SEIS
(1) SEIS not availbale for Foreign exchange remittances other than those earned for rendering of notified services would not be counted for entitlement. Thus, other sources of foreign exchange earnings such as equity or debt participation, donations, receipts of repayment of loans etc. and any other inflow of foreign exchange, unrelated to rendering of service, would be ineligible.
(2) Following shall not be taken into account for calculation of entitlement under the SEIS scheme
(a) Foreign Exchange remittances:
- Related to Financial Services Sector
(i) SEIS not applicable for raising of all types of foreign currency Loans;
(ii) SEIS not applicable for export proceeds realization of clients;
(iii) SEIS not applicable for Issuance of Foreign Equity through ADRs / GDRs or other similar instruments;
(iv) SEIS not applicable for Issuance of foreign currency Bonds;
(v) SEIS not applicable for Sale of securities and other financial instruments; (vi) Other receivables not connected with services rendered by financial institutions; and
- SEIS not applicable for Earning through contract/regular employment abroad (e.g. labour remittances);
(b) SEIS not applicable for Payments for services received from EEFC Account;
(c) SEIS not applicable for Foreign exchange turnover by Healthcare Institutions like equity participation, donations etc.
(d) SEIS not applicable for Foreign exchange turnover by Educational Institutions like equity participation, donations etc.
(e) SEIS not applicable for Export turnover relating to services of units operating under SEZ / EOU / EHTP / STPI / BTP Schemes or supplies of services made to such units;
(f) SEIS not applicable for Clubbing of turnover of services rendered by SEZ / EOU /EHTP / STPI / BTP units with turnover of DTA Service Providers;
(g) SEIS not applicable for Exports of Goods.
(h) SEIS not applicable for Foreign Exchange earnings for services provided by Airlines, Shipping lines service providers plying from any foreign country X to any foreign country Y routes not touching India at all.
(i) SEIS not applicable for Service providers in Telecom Sector