Executive Summary:
This notification outlines changes to the Service Exports from India Scheme (SEIS) for services rendered in the Financial Year 2019-20. It specifies eligible services and rates as listed in Appendix 3X, caps total entitlement at Rs 5 Crore per IEC, and sets a deadline of 31.12.2021 for online application submissions, after which applications will be time-barred.
Key Points / Main Content:
* **Eligibility and Rates:**
* For FY 2019-20, eligible services and applicable SEIS rates are listed in Appendix 3X.
* Appendix 3E has no specified services for exports made in FY 2019-20.
* **Duty Credit Scrip and Entitlement:**
* Service providers are entitled to Duty Credit Scrip at notified rates on net foreign exchange earned.
* Total entitlement is capped at Rs 5 Crore per IEC for FY 2019-20.
* **Application Deadline:**
* The deadline for filing online SEIS applications (ANF 3B) for FY 2019-20 is 31.12.2021.
* Late cut provisions under para 9.02 of HBP 2015-20 will not apply.
* Applications will be time-barred after 31.12.2021.
* **Ineligible Foreign Exchange Remittances:**
* Foreign exchange remittances related to financial services, contract/regular employment abroad, EEFC account payments, equity/donations by healthcare/educational institutions, services from EOU/EHTP/STPI/BTP units, or services by airlines/shipping lines on routes not touching India will not be considered for SEIS entitlement calculation.
* **Maritime Transport Services:**
* Under Maritime Transport Services marked 9A a, b and c , the reward shall be limited to Operations from India by Indian Flag Carriers Only.
Impact Analysis:
* **Service Exporters:**
* Impact: Benefit from Duty Credit Scrip on eligible services, subject to a cap. Need to be aware of eligible services and ensure foreign exchange earnings are not from excluded categories.
* Action Required: File online SEIS applications by 31.12.2021, ensuring accurate documentation and compliance with eligibility criteria.
* **IEC Holders:**
* Impact: Subject to a maximum SEIS entitlement of Rs 5 Crore per IEC for FY 2019-20.
* Action Required: Track SEIS claims to ensure they do not exceed the Rs 5 Crore limit.
* **Government Agencies (DGFT, Customs):**
* Impact: Need to administer and monitor SEIS claims according to the new provisions, including the entitlement cap and application deadline.
* Action Required: Update systems and procedures to reflect the changes in SEIS rules for FY 2019-20 and communicate these changes to relevant stakeholders.
Key Entities Referenced
Service Exports from India Scheme: A scheme (SEIS) for services rendered in the Financial Year 2019-20, providing Duty Credit Scrip at notified rates on net foreign exchange earned.
Financial Year 2019-20: The financial year for which the SEIS claims are applicable in this notification, specifically from 01.04.2019 to 31.03.2020.
Foreign Trade Development and Regulation Act, 1992: The Act under Section 5 of which the powers are conferred for changes in SEIS.
Foreign Trade Policy, 2015-20: The Foreign Trade Policy (FTP) which is being amended with changes to the SEIS scheme.
Udyog Bhawan, New Delhi: Location of Ministry of Commerce and Industry Department of Commerce.
Duty Credit Scrip: Entitlement for service providers of eligible services at notified rates as given in Appendix 3X on net foreign exchange earned.
Rs 5 Crore: The maximum entitlement under SEIS per IEC (Importer-Exporter Code) for the FY 2019-20.
Directorate General of Foreign Trade: Authority issuing the notification
To be published in the Gazette of India Extraordinary Part II , Section 3, Sub Section (ID
Government of India
Ministry of Commerce & Industry
Department of Commerce
Udyog Bhawan, New Delhi
Notification No: 2.9/2015-2020
New Delhi, 22TMSeptember 2021
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 :
“ 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 HBP 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.
an V3e \d oleea
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. 29 /2015-20 dated 2.3/09/2021
Appendix 3X
Admissible rate in %
CPC | paige raieed
SI no. Sector (Provisional ) 8 nine
Code for the period
01.04.2019 to
31.03.2020
1 BUSINESS SERVICES
A. _ |Professional services
a. |Legal Services 861 5
b. Accounting, auditing and book-keeping 862 5
services
c. [Taxation services 863 “|
d. __|Architectural services 8671 5
e. |Engineering services 8672 5
r. Integrated engineering services 8673 5
Urban planning and landscape architectural
& —_|services eave 2
h. {Medical and dental services 9312 5
i. Veterinary services 932 5
; Services provided by midwives, nurses,
J: physiotherapists and paramedical personnel 93191 5
B Research and development services
a. |R&D services on natural sciences 851 5
. oa services on social sciences and 852 5
umanities
c. _ |Interdisciplinary R&D services 853 5
Cc Rental/Leasing services without
* loperators
a. {Relating to ships 83103 5
b. {Relating to aircraft 83104 5
Relating to other transport equipment 83101
e 83102 5
83105
d. Relating to other machinery and equipment 83106-83109 5D. |Other business services
a. _ |Advertising services 871 3
Market research and public opinion polling
b. Services 84 3
Services incidental to agricultural, hunting 88] 3
° land forestry
d. {Services incidental to fishing 882 3
Services incidental to mining 883
e.
3
5115
Services incidental to manufacturing 884
f.
3
885
_ Services incidental to energy distribution 887 3
h. Placement and supply services of personnel 879 3
1. Investigation and security 873 3
i Related scientific and technical consulting 8675 3
services
Maintenance and repair of equipment (not
including maritime vessels, aircraft or other 633
k, transport equipment) 8861-8866 3
1. {Building cleaning services 874 3
m. {Photographic services 875 3
n. __|Packaging services 876 3
o. _ |Printing, publishing 88442 3
p. {Convention services 87909 3
3 COMMUNICATION SERVICES
Audiovisual services
Motion picture and video tape production 9611 5
a. Jand distribution service
b. [Motion picture projection service 9612 5
c. {Radio and television services 9613 <]
d Radio and television transmission services 7504 5
e. |Sound recording n.a. 5CONSTRUCTION AND RELATED
3 ENGINEERING SERVICES
A G eneral] constt rru uct ci ton i on work for bu ui il ld di ing 512 5
General construction work for civil
4 engineering alg .
Installation and assembly work 514
ce 516 5
D. Building completion and finishing work 517 5
4 EDUCATIONAL SERVICES (see Note
1)
A. _ |Primary education services 921 5
B. _|Secondary education services 922 5
C. |Higher education services 923 5
D. _‘|Adult education 924 5
5 ENVIRONMENTAL SERVICES
A. |Sewage services 9401 5
B. _ |Refuse disposal services 9402 5
C. __|Sanitation and similar services 9403 5
6 HEALTH-RELATED AND SOCIAL
SERVICES
A. — |Hospital services 9311 5
* TOURISM AND TRAVEL-RELATED
SERVICES
x Hotels and Restaurants (including catering)
a. {Hotel 641-643 3
b. {Restaurants (including catering) 641-643 3
B. Travel agencies and tour operators services 747] 5
C. {Tourist guides services 7472 5RECREATIONAL, CULTURAL AND
SPORTING SERVICES (other than
8 audiovisual services)
Entertainment services (including theatre,
A. _ |live bands and circus services) 9619 5
INews agency services 962 5
Libraries, archives, museums and other 963 5
cultural services
D. Sporting and other recreational services 964 5
9 |TRANSPORT SERVICES
A. _|Maritime Transport Services (see Note 2)
a. |Passenger transportation 7211 s
b. _ |Freight transportation TZ 5
c. {Rental of vessels with crew 7213 5
d. _|Maintenance and repair of vessels 8868 5
e. [Pushing and towing services 7214 5
B. _ {Air transport services
a. {Rental of aircraft with crew 734 5
b. _ |Maintenance and repair of aircraft 8868 5
- ‘Aii rport operatti i ons and d ground d ha hn ad nl di ling a 5
C. |Road Transport Services
Passenger transportation 7121 5
=
7122
b. {Freight transportation 7123 =|
: Rental of commercial vehicles with 7124 5
operator
Maintenance and repair of road transport 6112
d. .
equi pment
8867
3
_ Supporting services for road transport 744 5
services
Services auxiliary to all modes of
D.
transport
a. |Storage and warehouse services 742 5b. IF reight transport agency services | 748 | 5 |
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:
a. Foreign Exchange remittances:
|. Related to Financial Services Sector
Raising of all types of foreign currency Loans;
Export proceeds realization of clients;
Issuance of Foreign Equity through ADRs / GDRs or other similar
instruments;
Issuance of foreign currency Bonds;
Sale of securities and other financial instruments;
Vi. Other receivables not connected with services rendered by
financial institutions; and
ll. Earned through contract/regular employment abroad (e.g. labour
remittances);
b. Payments for services received from EEFC Account;
c. Foreign exchange turnover by Healthcare Institutions like equity participation,
donations etc.
d. Foreign exchange turnover by Educational Institutions like equity participation,
donations etc.
e. Export turnover relating to services of units operating under EOU / EHTP / STPI
/ BTP Schemes or supplies of services made to such units
f. Clubbing of turnover of services rendered by EOU /EHTP / STPI/ BTP units with
turnover of DTA Service Providers;
g. 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.
h. Service providers in Telecom Sector.
2 RK