Who are not eligible to claim scheme under SEIS?

Posted on 17 April 2023 Category : Foreign Trade Policy 2015-20

Ineligible categories under SEIS

In this post, the categories of service exporters does not qualify to claim SEIS scheme, Services Exports from India Scheme under Foreign Trade Policy 2015-20 is explained.

Exporters not eligible to claim SEIS scheme under Foreign Trade Policy 2015-20.

Foreign exchange remittances other than those earned for rendering of notified services would not be counted for entitlement. Thus, other sources of foreign exchange earnings such as equity or debt participation, donations, receipts of repayment of loans etc. and any other inflow of foreign exchange, unrelated to rendering of service, would be ineligible.

Following shall not be taken into account for calculation of entitlement under the scheme

(a) Foreign Exchange remittances:

I. Related to Financial Services Sector

(i) Raising of all types of foreign currency Loans;

(ii) Export proceeds realization of clients;

(iii) Issuance of Foreign Equity through ADRs / GDRs or other similar instruments;

(iv) Issuance of foreign currency Bonds;

(v) Sale of securities and other financial instruments;

(vi) Other receivables not connected with services rendered by financial institutions; and

II. Earned through contract/regular employment abroad (e.g. labour remittances);

(b) Payments for services received from EEFC Account;

(d) Foreign exchange turnover by Educational Institutions like equity participation, donations etc.

(e) Export turnover relating to services of units operating under SEZ / EOU / EHTP / STPI / BTP Schemes or supplies of services made to such units;

(f) Clubbing of turnover of services rendered by SEZ / EOU /EHTP / STPI / BTP units with turnover of DTA Service Providers;

(g) Exports of Goods.

(h) 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.

(i) Service providers in Telecom Sector.

As mentioned, the above categories of service exporters are not eligible to claim benefits under SEIS scheme of Foreign Trade Policy of India 2015-20.

The above information is a part of Import Export online Training

Also read:
Service Exports from India Scheme (SEIS)
Common guidelines to exporters to claim SEIS and MEIS
Who are eligible for SEIS, Service Exports from India Scheme?
List of eligible exporters for SEIS, Service Exports from India Scheme
How to utilize duty scrip issued under MEIS and SEIS?

Also read:MEIS Scheme under Foreign Trade Policy of India 2015-2020

In this post, the categories of service exporters does not qualify to claim SEIS scheme, Service Exports from India Scheme under Foreign Trade Policy 2015-20 is explained. You may express your views about ineligibility to claim SEIS benefits under Foreign Trade Policy 2015-20 (FTP 2015-20)

Comment below your thoughts about this article, Who are not eligible to claim scheme under SEIS.

Comments

VINCENT PINTO: On 07 April 2015 FTP Para 9.51 defines the Service provider. Earlier Para 9.53 (ii) was for Supply of a service from India to a service consumer of any other country in India was eligible for SFIS (Served from India Scheme).. No under Para 9.51 (ii), the words In India have been removed and it reads as Supply of a service from India to service consumers of any other country : (Mode 2- Consumption abroad). A service provider in the hotel industry was covered under Para 9.53(ii) earlier. Now as per the definition of service provider in Para 9.51 (ii), it appears that the hotels providing services to service consumers of any other country within India are not eligible for SEIS benefits. Can someone clarify on this please.

JUGAL KISHOR RANA: On 07 May 2015 Dear sir When will be come into force this scheme. Thanks/Regards jugal

ANIL : On 19 September 2017 Dear Sir, I have a question relating SEIS income, in this income can we pay first tax & then utilize for business or we can simply show this income in our books & book other expenses & then pay income tax balance amount. Kindly help on this. Regards, Anil

Kamlesh Yadav: On 20 October 2018 Is STPI unit eligible for SEIS?

Panakj: On 09 October 2020 in seis scheme we must have foreign remittance of $10000/150000 in preceding year, i want to know if i have first year of my business and wants to apply for seis then how can i do the same.

Who are not eligible to claim scheme under SEIS?

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