AFFECTED FLOWOutflow (subsidised)
ANNOUNCED AS TEMPORARYYes
Tax-based export incentive
A new scheme for incentivising services exports, Service Exports from India Scheme (SEIS) has been announced that replaces the earlier Served From India Scheme (SFIS). The scheme has removed several services as were provided in the earlier FTP and has also reduced the level of incentives from 10% under the previous FTP to 3-5% currently. Additionaly, the scope of the scheme has been amended to include all service poviders that provide the service from India, rather than being an 'Indian service provider'.
Further, the duty credit scrips issued as incentives for service exports were earlier not freely transfereable and were allowed to be used for specific goods and services only. These restrictions have also been removed under SEIS issued duty credit scrips.
The SEIS was initially provided on exports until 30 September 2015, thereafter being subject to review and revision. These incentives have been extended every year with the current extension being valid until 31 March 2018.
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