Service from India Scheme SEIS

Service Exports from India Scheme (SEIS)

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Service Exports from India Scheme (SEIS)

Service Exports from India Scheme (SEIS) aims to promote export of services from India by providing duty scrip credit for eligible exports. Under the scheme, service providers, located in India, would be rewarded under the SEIS scheme, for all eligible export of services from India. In this article, we look at the Service Exports from India Scheme in detail. Service Exports from India Scheme was earlier termed as Served from India Scheme (SFIS).

SEIS Scheme Eligibility

Service Providers of notified services, located in India are eligible for the Service Exports from India Scheme. To be eligible, a service provider (Company / LLP / Partnership Firm) should have a minimum net free foreign exchange earnings of USD15000 in the preceding financial year to be eligible for duty credit scrips. For proprietorships or individual service providers, a minimum net foreign exchange earnings of USD10,000 in the preceding financial year is required to be eligible for the scheme. Also, in order to claim reward under the SEIS scheme, the service provider shall have to have an active Import Export Code (IE Code) at the time of rendering such services for which rewards are claimed.

Net foreign exchange earnings for the SEIS scheme is calculated as:

Net Foreign Exchange = Gross Earnings of Foreign Exchange – Total Expenses or payment or remittances of Foreign Exchange.

Duty Credit Scrip

Service providers of eligible services shall be entitled to duty credit scrip at notified rates on the net foreign exchange earned. Duty credit scrips can be used for the payment of custom duties, excise duties, service tax on procurement of services, custom duty in case of default in fulfillments of export obligation under Advance Authorization/EPCG, etc., Further, the SEIS scheme has given relaxation to the actual user condition and duty credit scrips and goods imported using duty credit scrips are freely transferable. Duty credit scrip would be valid for a period of 18 months from the date of issue.

Service Export from India Scheme (SEIS) Rate of Reward

The following services and rates of rewards were applicable for services export made between 1-4-2015 to 30-09-2015:

  • Professional Services – 5% Rate of Reward
    • 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 – 5% Rate of Reward
    • R&D services on natural sciences
    • R&D services on social sciences and humanities
    • Interdisciplinary R&D services
  • Rental/Leasing Services without Operators – 5% Rate of Reward
    • Relating to ships
    • Relating to aircraft
    • Relating to other transport equipment
    • Relating to other machinery and equipment
  • Audiovisual Services – 5% Rate of Reward
    • Motion picture and video tape production and distribution service
    • Motion picture projection service
    • Radio and television services
    • Radio and television transmission services
    • Sound recording
  • Construction and Related Engineering Services – 5% Rate of Reward
    • General construction work for building
    • General construction work for civil engineering
    • Installation and assembly work
    • Building completion and finishing work
  • Educational Services  – 5% Rate of Reward
    • Primary education services
    • Secondary education services
    • Higher education services
    • Adult education
  • Environmental Services – 5% Rate of Reward
    • Sewage services
    • Refuse disposal services
    • Sanitation and similar services
  • Health and Social Services – 5% Rate of Reward
    • Hospital services
  • Tourism and Travel Services – 3% or 5% Rate of Reward
    • Hotel (3% Rate of Reward)
    • Restaurants (3% Rate of Reward)
    • Travel agencies and tour operators services (5% Rate of Reward)
    • Tourist guides services (5% Rate of Reward)
  • Recreational, Cultural and Sporting Services – 5% Rate of Reward
    • Entertainment services (including theatre, live bands and circus services)
    • News agency services
    • Libraries, archives, museums and other cultural services
    • Sporting and other recreational services
  • Transport & Auxiliary Services – 5% Rate of Reward
    • Passenger transportation
    • Freight transportation
    • Rental of vessels with crew
    • Maintenance and repair of vessels
    • Pushing and towing services
    • Supporting services for maritime transport
    • Rental of aircraft with crew
    • Maintenance and repair of aircraft
    • Airport Operations and ground handling
    • Rental of commercial vehicles with operator
    • Maintenance and repair of road transport equipment
    • Supporting services for road transport services
    • Cargo-handling services
    • Storage and warehouse services
    • Freight transport agency services
  • Other Business Services – 3% Rate of Reward
    • Advertising services
    • Market research and public opinion polling services
    • Management consulting service
    • Services related to management consulting
    • Technical testing and analysis services
    • Services incidental to agricultural, hunting and forestry
    • Services incidental to fishing
    • Services incidental to mining
    • Services incidental to manufacturing
    • Services incidental to energy distribution
    • Placement and supply services of personnel
    • Investigation and security
    • Related scientific and technical consulting services
    • Maintenance and repair of equipment (not including maritime vessels, aircraft or other transport equipment)
    • Building- cleaning services
    • Photographic services
    • Packaging services
    • Printing, publishing
    • Convention services

Foreign Exchange or Remittance Ineligible under SEIS Scheme

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.

As mentioned above, the service provider should have to have an active Import Export Code (IE Code) at the time of rendering such services for which rewards are claimed. IndiaFilings can help you obtain Import Export Code (IE Code).

Income Tax eFiling

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Comments (2)

Arunish Sharma

Apr 07, 2017 at 1:14 PM

Dear Sir

If we provide export services – management consultancy to a company in Dubai , will we be exempt from Srrvice Tax


Anil Chaudhry

Apr 18, 2017 at 12:07 PM

Dear concern
Greetings! I would like to know that the service exported​ to neighbouring country Bhutan, Bangladesh and Nepal are eligible for SEIS benefits and is exempted from service tax or not.


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