DGFT Consultancy

Objective of the scheme is to encourage and maximise export of notified services from India. The notified services and rates of rewards are listed in Appendix 3D. Reward is calculated on the net foreign exchange earned.

The reward is the form of “Duty Credit Scrips”. The Duty Credit scrips can be used for

1. Payment of basic customs duty and Additional Customs duty for import of goods
2. Payment of Central Excise Duty on domestic procurement of goods.
3. Payment of Custom Duties in case of Export Obligation defaults.
4. Payment of Composition fees
5. Payment of Application Fee
6. Payment of Value Shortfall in Export Obligation

Duty Credit Scrips are freely transferable, which means these can be sold to a different entity as well.

Eligibility:

1. Service Provider should have an active IEC at the time of rendering services for which the rewards are claimed
2. Services should be rendered in the following manner
   1. Mode 1 – Cross Border Trade: Supply “service” from India to any other country/li>
   2. Mode 2 – Consumption Abroad: Supply “service” from India to service consumer(s) of any other country in India.
3. Net Free Foreign Exchange Earnings should be minimum of US $15,000 in preceding financial year.
4. For Individual Service Providers and sole proprietorship, minimum Net Free Foreign Exchange should be minimum US $10,000.
5. Services listed in Appendix 3E are only eligible for payment in Indian Rupees Payment of Application Fee

Ineligible Categories:

Foreign exchange earnings such as equity or debt participation, donations, receipts of repayment of loan etc. and any other inflow of foreign exchange, unrelated to rendering of service.

Validity:

Duty Credit Scrips will be valid for 24 months from the date of Issue. Revalidation will not be allowed by the Dept.

Time Frame for Applying for SEIS:

1. 12 months from end of relevant Financial Year of claim period.