the Central Government has notified the Foreign Trade Policy, 2015-2020 applicable w.e.f. 01.04.2015.
Service Providers can avail following benefits under new policy:
- Service Provider of notified services shall be rewarded with Duty credit scrip @3% or 5% of net free foreign exchange earnings. Rate of reward will depend on nature of Services provided. The present rates of reward are 3% and 5%. The list of services and the rates of rewards would be reviewed after 30.9.2015.
- The scrip are transferable;& can be used for:
- Payment of Custom on Import of goods (Notification No. 24/2015-Customs & 25/2015-Customs);
- Payment of Excise Duty on procurement of goods (Notification No. 20/2015-CE & 21/2015-CE); and
- Payment of Service Tax on procurement of services (Notification No. 10/2015-ST & 11/2015-ST)
Services Exports from India Scheme
(i) Served from India Scheme (SFIS) has been replaced with Service Exports from India Scheme (SEIS). SEIS shall apply to `Service Providers’ located in India’ instead of `Indian Service Providers’. Thus SEIS provides for rewards to all Service providers of notified services, who are providing services from India, regardless of the constitution or profile of the service provider.
(ii) The rate of reward under SEIS would be based on net foreign exchange earned. The reward issued as duty credit scrip, would no longer be with actual user condition and will no longer be restricted to usage for specified types of goods but be freely transferable and usable for all types of goods and service tax debits on procurement of services/goods. Debits would be eligible for CENVAT credit or drawback.
(iii) The present rates of reward are 3% and 5%. The list of services and the rates of rewards would be reviewed after 30.9.2015.