The much-awaited extension and the details on the Service Exports from India Scheme (SEIS) for FY 2019-20 have finally been announced by the government vide Notification No. 29/2015-2020 dated 23 September 2021. The amendments in the scheme are summarized below:
- Pruning of eligible services list
The following services have been removed from the list of notified services eligible for SEIS incentive for FY 2019-20:
Description of Service | Central Product Classification (CPC) Code |
Cargo handling service | 741 |
Support services for maritime transport | 745 |
Management consulting services | 865 |
Support services for maritime transport | 866 |
Technical testing and analysis services | 8676 |
- Reduction in incentive rates
The incentive rates of SEIS for FY 2019-20 have been revised and notified in the range of 3% to 5% of net foreign exchange earned. Accordingly, the incentives now would be reduced (by approximately 2%) as compared to the earlier years' rates.
- Other important updates
- In addition to reduced rates, total entitlement under SEIS has been capped at INR 50 million per IEC for service exports rendered in FY 2019-20.
- The facility to claim benefits under SEIS on payments received in INR would not be available for services notified in Appendix 3E for the period FY 2019-20.
- The deadline for submission of SEIS application for FY 2019-20 is 31 December 2021. Post this, the application will become time-barred i.e., there is no provision for delayed application with late-cut.
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