Benefits of Service Providers under Foreign Trade Policy, 2015–2020

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:

1. 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.  
2. 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.

Down­load The High­lights of For­eign Trade Pol­i­cy 2015–20