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Served from India Scheme


Served from India Scheme

The Served from India Scheme was introduced by the Government of India in 2007 to promote exporters of various type of services. The objective of the Served from India Scheme is to accelerate growth in export of services so as to create a powerful and unique “Served from India” brand, that is instantly recognized and respected the world over. In this article, we look at the features of benefits of Served from India Scheme to businesses in India.

Served from India Scheme Overview

Under the Served from India Scheme, Service Providers of more than 100 services like Professional Services, Computer Related Services, Hotels, Research and Development services, Communication Services, Construction, Tourism and Transport related Services, Health Related Social Service, Recreational, Cultural and Sporting Services etc. are entitled to Duty Credit Scrip. Service providers, who have a total foreign exchange earning of at least Rs.10 Lakhs in preceding or current financial year shall qualify for Duty Credit Scrip. For Individual Service Providers, the criterion is reduced to Rs.5 Lakhs of foreign exchange earnings.

Duty Credit Scrip

Duty Credit Scrip” may be used for import of any capital goods including spares, office equipment and professional equipment, office furniture and consumables, provided it is part of their main line of business. In the case of hotels and stand-alone restaurants, the duty credit entitlement may also be used for the import of food items and alcoholic beverages. The utilization is with AU Condition and Non-transferable except within a Group Company or Managed Hotel. This benefit of Duty Credit Scrip is granted from Regional Offices of DGFT, spread all over the country. Each year Duty Credit Scrip worth hundreds of crores are granted.

Service Provides Eligible for Served from India Scheme

The following list of service providers are eligible for Serve from India Scheme:

    1. Professional services
      1. Legal services
      2. Accounting, auditing and bookkeeping services
      3. Taxation services
      4. Architectural services
      5. Engineering services
      6. Integrated engineering services
      7. Urban planning and landscape architectural services
      8. Medical and dental services
      9. Veterinary services
      10. Services provided by midwives, nurses, physiotherapists and paramedical personnel
    2. Research and development services
      1. R&D services on natural sciences
      2. R&D services on social sciences and humanities
      3. Interdisciplinary R&D services
    3. Rental/Leasing services without operators
      1. Relating to ships
      2. Relating to aircraft
      3. Relating to other transport equipment
      4. Relating to other machinery and equipment
    4. Other business services
      1. Advertising services
      2. Market research and public opinion polling services
      3. Management consulting service
      4. Services related to management consulting
      5. Technical testing and analysis services
      6. Services incidental to agricultural, hunting and forestry
      7. Services incidental to fishing
      8. Services incidental to mining
      9. Services incidental to manufacturing
      10. Services incidental to energy distribution
      11. Placement and supply services of personnel
      12. Investigation and security
      13. Related scientific and technical consulting services
      14. Maintenance and repair of equipment (not including maritime vessels, aircraft or other transport equipment)
      15. Building-cleaning services
      16. Photographic services
      17. Packaging services
      18. Printing, publishing
      19. Convention services
    1. Audiovisual services
    2. Motion picture and videotape production and distribution service
    3. Motion picture projection service
    4. Radio and television services
    5. Radio and television transmission services
    6. Sound recording
    1. General Construction work for building
    2. General Construction work for Civil Engineering
    3. Installation and assembly work
    4. Building completion and finishing work
    1. Primary education services
    2. Secondary education services
    3. Higher education services
    4. Adult education
    1. Sewage services
    2. Refuse disposal services
    3. Sanitation and similar services
    1. Hospital services
    1. Hotels and Restaurants (including catering)
    2. Travel agencies and tour operators services
    3. Tourist guides services
    1. Entertainment services (including theatre, live bands and circus services)
    2. News agency services
    3. Libraries, archives, museums and other cultural services
    4. Sporting and other recreational services
    • Maritime Transport Services
      1. Passenger transportation
      2. Freight transportation
      3. Rental of vessels with crew
      4. Maintenance and repair of vessels
      5. Pushing and towing services
      6. Supporting services for maritime transport
    • Air transport services
      1. Rental of aircraft with crew
      2. Maintenance and repair of aircraft
    • Road Transport Services
      1. Passenger transportation
      2. Freight transportation
      3. Rental of Commercial vehicles with the operator
      4. Maintenance and repair of road transport equipment
      5. Supporting services for road transport services
    • Services Auxiliary To All Modes Of Transport
      • Cargo-handling services
      • Storage and warehouse services
      • Freight transport agency services

Foreign Remittance Not Eligible for Served from India Scheme

The following foreign remittances are not eligible for credit under Served from India Scheme:

  1. 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 foreign exchange remittances related to Financial Services Sector:
    1. Raising of all types of foreign currency loans;
    2. Export proceeds realization of clients;
    3. Issuance of Foreign Equity through ADRs / GDRs or other similar instruments;
    4. Issuance of foreign currency Bonds;
    5. Sale of securities and other financial instruments;
    6. Other receivables not connected with services rendered by financial institutions; and
  3. Foreign exchange earned through contract / regular employment abroad (e.g. labour remittances);
  4. Payments for services received from EEFC Account;
  5. Foreign exchange turnover by Healthcare Institutions like equity participation, donations etc. (However, remittances received on account of medical treatment, surgery, testing, consultancy and health care provided by the institution shall be eligible);
  6. Foreign exchange turnover by Educational Institutions like equity participation, donations etc. (However remittances received on account of the course fees and consultancy provided by the institution shall be eligible);
  7. Export turnover relating to services of units operating under SEZ / EOU / EHTP / STPI / BTP Schemes or supplies of services made to such units;
  8. Clubbing of turnover of services rendered by SEZ / EOU / EHTP / STPI / BTP units with turnover of DT A Service Providers; and
  9. Export of Goods.

Served from India Scheme – Hotels, Restaurants & Tourism Sector

Service Providers (except Hotels, Restaurants and other Service Providers in Tourism Sector) are entitled to Duty Credit Scrip of 10% of foreign exchange earned during the preceding financial year. Hotels of one-star and above (including managed hotels) and heritage hotels approved by Department of Tourism and other Service providers in tourism sector registered with Department of Tourism shall be entitled to 5% while Stand-alone restaurants are entitled to 10% of foreign exchange earned by them in preceding financial year.

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