According to the Foreign Trade Policy of India 2015-2020 act. The Government of India has launched the SEIS Scheme of India in the year 2015. SEIS was also known as Served from India Scheme (SFIS). The main reason behind this scheme is just to promote the Indian services that are exported to all over the world.
Due to this service export Indian Traders Going to get benefits. The Indian Government is going to help service providers to get their rewards. The rewards or benefits will be in the form of duty-free credit scrips and the incentives provided by the DGFT is in the range of 5%-7%.
Benefits of Duty-Free Credit Scrips:
Duty-Free credit scrips are the incentives, it will be given to the eligible service providers who are residentials of India. The rate of these incentives is in the range of 3, 5 or 7% and it will be depending on the foreign trades.
The incentives will be in the form of service taxes, customs duties, etc. Service Provider can transfer or sell this Duty Scrips one assessee to the other. So, it will be beneficial for the service provider.
The validity period for Duty-Free Scrips:
Validity Period for Duty-Free Scrips is 18 months from the date of the issue.
Appendix 3D and CPC:
Whenever any service provider wants to know details about the SEIS scheme and its benefits. He/She must know about which services are eligible to claim the benefits of the SEIS scheme. The service provider has to go through the Appendix 3D form. In appendix 3D form, DGFT has mentioned all the services which are beneficial for the service provider.
Along with the services, the DGFT has mentioned one more column and the column is Central Product Classification Code (CPC). The CPC column clearly states about the services, it means that each service has its own CPC. According to that, the service provider can decide under which CPC code their service will come. Due to this service provider will get a clear idea about if their service is eligible or not under the SEIS scheme.
Transportation Service Under SEIS Scheme:
All we know that, in day to day life transportation plays an important role. This Government of India has launched various services. It includes Maritime Transport Services, Air Transport Services, Road Transport Services and services auxiliary to all modes of transport.
These services further classified into sub-categories and those services have their CPC codes. Once you go through the Appendix 3D form you will get a clear idea about it.
ELIGIBILITY FOR SEIS SCHEME:
The SEIS scheme includes a total of 4 modes, but out of which only 2 modes can avail the benefits of the SEIS scheme. Those modes are mode 1 and mode 2.
Mode 1: Cross border trade of services i.e. consisting of services supply from India to any other country.
Mode 2: Consumption of services abroad i.e. consisting of services supply from India to service consumers of any other country.
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