Service Exports from India Scheme (SEIS)

The Service Exports from India Scheme (SEIS) is a program introduced by the Government of India under the Foreign Trade Policy (FTP) 2015-2020. It replaced the earlier “Served from India Scheme” under the Foreign Trade Policy 2009-2015. SEIS aims to enhance the global competitiveness of Indian services by providing incentives.

Eligibility Criteria to Avail SEIS Benefits

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1. Net Foreign Exchange Earnings:
   • Service Providers: Must have a minimum net foreign exchange earnings of USD 15,000 in the financial year in which the services were rendered.
   • Individual Service Providers and Sole Proprietorships: Minimum net foreign exchange earnings criteria is USD 10,000 in the financial year.
2. Active Import Export Code (IE Code):
   • The service provider must have an active IE Code at the time of rendering the services for which rewards are claimed.
3. Eligible Services:
   • Benefits under SEIS can only be claimed for services listed in Appendix 3D. The list of eligible services and the applicable reward rates are provided in this appendix.
4. Deemed Foreign Exchange Receipts:
   • Payments received in Indian Rupees for specified services will be treated as deemed foreign exchange, according to the Reserve Bank of India guidelines. The relevant services are listed in Appendix 3E.
5. Net Foreign Exchange Definition:
   • Net Foreign Exchange: Defined as the gross earnings of foreign exchange minus total expenses, payments, or remittances of foreign exchange by the IEC holder related to the service sector within the financial year.
   • For IEC holders who are both manufacturers and service providers, only foreign exchange earnings and expenses related to the service sector will be considered.

SEIS Benefits: Main Points

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1. Eligibility Criteria:
   • Employee Limit: Must have no more than 25 employees.
   • Trading Duration: Company should be trading for less than 2 years.
2. Services Eligible for SEIS Benefits:
   • Construction and Engineering: General construction, installation, and building completion.
   • Educational Services: Primary, secondary, higher, and adult education.
   • Environmental Services: Sewage, refuse disposal, sanitation.
   • Health Services: Hospital services.
   • Tourism and Travel: Hotels, restaurants, travel agencies, tour operators, tourist guides.
   • Recreational, Cultural, and Sporting: Entertainment, cultural services, sports.
   • Transport Services: Maritime, air, road, and auxiliary transport services.
3. Benefit Details:
   • Reward Percentage: 3% to 5% of net foreign exchange realized.
   • GST: SEIS benefits cannot be used to pay GST, according to Trade Notice No. 11/2017.

SEIS Benefits

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Services Eligible to Claim Benefits under SEIS

The Service Exports from India Scheme (SEIS) offers rewards based on ‘net’ free foreign exchange realized. The services eligible for SEIS benefits include:

• 1. Communication Services
  • Audio Visual Services:
    • Motion picture and video tape production and distribution.
    • Motion picture projection.
    • Radio and television services.
    • Radio and television transmission.
    • Sound recording.
• 2. Business Services
  • Professional Services:
    • Legal services.
    • Accounting, auditing, and bookkeeping services.
    • Taxation services.
    • Architectural services.
    • Engineering services.
    • Integrated engineering services.
    • Urban planning and landscape architectural services.
    • Medical and dental services.
    • Veterinary services.
    • Services provided by midwives, nurses, physiotherapists, and paramedical personnel.
• Research and Development Services:
  • R&D services on natural sciences.
  • R&D services on social sciences and humanities.
  • Interdisciplinary R&D services.
• INDTAX Filing Services:
  • Tax filing services related to international taxation and compliance.
• 3. Construction and Related Engineering Services
  • General Construction Work:
    • Building construction.
    • Civil engineering works.
• Installation and Assembly Work:
  • Building completion and finishing services.
• 4. Educational Services
  • Education:
    • Primary education services.
    • Secondary education services.
    • Higher education services.
    • Adult education services.
• 5. Tourism and Travel-Related Services
  • Hotels and Restaurants:
    • Including catering services.
• Travel Agencies and Tour Operators:
  • Services provided by travel agencies and tour operators.
• Tourist Guides:
  • Services provided by professional tourist guides.
• 6. Social Services
  • Health-Related Services:
    • Hospital services.
• 7. Recreational, Cultural, and Sporting Services
  • Entertainment Services:
    • Theatre, live bands, and circus performances.
• Cultural Services:
  • News agency services.
  • Libraries, archives, museums, and other cultural services.
• Sporting Services:
  • Recreational sports and other related activities.
• 8. Transport Services
  • Maritime Transport Services:
    • Passenger transportation (operations from India by Indian flag carriers only).
    • Freight transportation (operations from India by Indian flag carriers only).
    • Rental of vessels with crew (operations from India by Indian flag carriers only).
    • Maintenance and repair of vessels.
    • Pushing and towing services.
    • Supporting services for maritime transport.
• Air Transport Services:
  • Rental of aircraft with crew.
  • Maintenance and repair of aircraft.
  • Airport operations and ground handling.
• Road Transport Services:
  • Passenger Transportation: Services involving the transportation of passengers.
  • Freight Transportation: Services related to the transportation of goods.
  • Rental of Commercial Vehicles: Rental services for commercial vehicles with operators.
  • Maintenance and Repair: Services for maintaining and repairing road transport equipment.
• Supporting Services: Additional services that support road transport activities.