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.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.