Service Exports from India Scheme (SEIS) for services rendered in the Financial Year 2019-20

To be published in the Gazette of India Extraordinary Part Il , Section 3, Sub Section (Il)

Government of India

Ministry of Commerce & Industry

Department of Commerce

Udyog Bhawan, New Delhi

Notification No: Z /2015-2020

Subject: Service Exports from India Scheme (SEIS) for services rendered in the Financial Year 2019-20

S.O.(E): In exercise of the powers conferred by Section 5 of the Foreign Trade (Development and Regulation) Act, 1992 read with Para 1.02 of the Foreign Trade Policy, 2015-20 and the enabling para 3.13 of the FTP, the Central Government hereby notifies the following changes in SEIS in the Foreign Trade Policy 2015-20, as amended from time to time, with immediate effect:

2. After the existing para 3.08 (a) of FTP 2015-20, the following para 3.08 (aa) is inserted .

⁶‘ 3.08 (aa) For SEIS claims on services rendered in the FY 2019-20, the notified services and rates are listed in Appendix 3X as per Annexure to this Notification.

3. At the end of para 3.08 (c) of FTP 2015-20, the following is added:

“However, there shall be no such specified services under Appendix 3E for exports made in the financial year 2019-20”

4. After the existing para 3.10 of FTP 2015-20, the following paras are inserted:

3.10A For SEIS claim for FY 2019-20, service providers of eligible services shall be entitled to Duty Credit Scrip at notified rates (as given in Appendix 3X) on net foreign exchange earned, with the total entitlement capped at Rs 5 Crore per IEC for FY 2019-20.

3.10 B For SEIS claim for FY 2019-20, the deadline for filing the online application as per ANF 3B shall be 31.12.2021. Provision of late cut under para 9.02 of I-IBP 2015-20 shall not apply for SEIS applications for FY 2019-20 and such applications shall get time-barred after 31.12.2021.”

Effect of this Notification: List of eligible services and rates under SEIS for services rendered in the FY 2019-20 is being notified. A limit on total entitlement under SEIS has been imposed for service exports rendered in the period 01.04.2019 to 31.03.2020, and capped at Rs. 5 Cr per IEC. Further, it has been notified that the facility to claim benefits under SEIS on payments in Indian Rupees shall not be available for services rendered in the FY 2019-20. It is also notified that the deadline for submission of SEIS applications for FY 2019-20 shall be 31.12.2021 and late cut provisions for such applications shall not apply i.e. SEIS applications for FY 2019-20 will become time barred after 31.12.2021.

This issues with approval of the Minister of Commerce and Industry.

Director General of Foreign Trade

Ex-officio Additional Secretary to the Government of India

E-mail:dgft@nic.in

[File no. 01/61/180/226/AM19/PC-3]

Annexure to the Notification No. 2..-¶ /2015-20 dated 2@/09/2021

Appendix 3X

Note 1: For Education Services, SEIS reward shall not be available on Capitation Fee.

Note 2: Under Maritime Transport Services marked { 9A (a), (b) and (c) }, the reward shall be limited to Operations from India by Indian Flag Carriers Only.

Note 3: Following shall not be taken into account for calculation of entitlement under SEIS for FY 2019-20:

1. Foreign Exchange remittances:
2. Related to Financial Services Sector

Raising of all types of foreign currency Loans; ii. Export proceeds realization of clients;

iii.         Issuance of Foreign Equity through ADRs / GDRs or other similar

instruments; iv.           Issuance of foreign currency Bonds;

Sale of securities and other financial instruments;

1. Other receivables not connected with services rendered by financial institutions; and
2. Earned through contract/regular employment abroad (e.g. labour remittances);
3. Payments for services received from EEFC Account;
4. Foreign exchange turnover by Healthcare Institutions like equity participation, donations etc.
5. Foreign exchange turnover by Educational Institutions like equity participation, donations etc.
6. Export turnover relating to services of units operating under EOU / EHTP / STPI / BTP Schemes or supplies of services made to such units
7. Clubbing of turnover of services rendered by EOU /EHTP / STPI / BTP units with turnover of DTA Service Providers;
8. Foreign Exchange earnings for services provided by Airlines, Shipping lines service providers plying from any foreign country X to any foreign country Y routes not touching India at all.

Service providers in Telecom Sector