GSP Benefit withdrawal by US against Indian Exports!
- Service Exports from India Scheme(SIES) has been introduced through the latest Foreign Trade Policy(FTP) 2015-2020 as a tool to encourage export of notified services from
- It replaces the Served from India Scheme(SFIS) that was introduced in the Foreign Trade Policy 2004-2009.
- SEIS provides rewards in the form of Duty Credit Scrip to the eligible service providers which is calculated as specific parentage (in the range of 5% to 7%) of Net Foreign Earnings of the eligible service provider.
- The reward scheme has come into force from 1st April, 2015 i.e., the rewards under SEIS shall be admissible for services rendered on or after 04.2015.
- Government has notified certain services which are eligible for SEIS benefits. These services has been listed in Appendix 3D of
- All type of Service Providers (i.e. Companies, Partnership Such Service Providers should have following minimum net free foreign exchange earnings in preceding financial year:
- US$10,000 : Individual Service Providers & Sole Proprietorship .
- US$15,000 : Others
- 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 3 D
- 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
Duty Credit Scrip
- Service Providers of eligible services shall be entitled to Duty Credit Scrip at notified rates (as given in Appendix 3D of the Foreign Trade Policy 2015-2020) on the net foreign exchange
- The duty credit scrip can be utilized for:
- Custom duties for import of inputs or goods except the notified
- Custom duty in case of default in fulfillment of Export obligation & payment of value shortfall in Export
- Reimbursement of duties on imported inputs under schemes such as The Export Promotion Capital Goods Scheme, The Duty-free Import Authorization Scheme and The Advance Authorization Scheme.
- For payment of composition fee or Application fee under the FTP and transferable.
- The reward issued as scrip would be freely usable for all goods and service tax debits on procurement of goods/services.
- The scrip so rewarded under this scheme shall be valid for a period of 18 months from the date of its
Following are the Eligible Sectors
|Research & Development Services|
|Rental/Leasing services without operators|
|Other Business Services|
|Construction & related Engineering Services|
|Health-Related and Social Services|
|Tourism and Travel Related Services|
|Recreational, Cultural and Sporting Services (other than audio visual services)|
|Maritime Transport Services|
|Air Transport Services|
|Road Transport Services|
|Services auxiliary to all modes of Transport|
How Do We Help You ?
We provide end to end solution to get maximum benefits under this scheme which includes:
- Deciding the eligibility
- Preparation of application to be filed for issuance of Duty Credit Scrip
- Follow up with Department to expedite the process of issuance of
- Helping in identifying a buyer of Duty Credit Scrip Scrip, if the same cannot be utilized by the client.