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The Centre has imposed a limit on total entitlement under the Services Export from India Scheme (SEIS) for 2019-20 capping it at ₹5 crore per entity.
In a notification issued by the Commerce & Industry Ministry on Thursday, it was also stated that the facility to claim benefits under SEIS on payments in Indian rupees shall not be available for services rendered in 2019-20.
The deadline for submission of SEIS applications for 2019-20 shall be December 31, 2021, and late cut provisions for such applications shall not apply making the exercise time-barred, the notification added.
Indicating that the available time may not be enough for services exporters to claim their entitlements, the Services Export Promotion Council has written to the Directorate General of Foreign Trade (DGFT) seeking an extension of the timeline to March 31, 2022.
‘Committed to guide and advise’
“SEPC is committed to guide and advise all exporters on obtaining SEIS benefits. It has also written to DG, DGFT to extend the date of filing for 2019-20 to March 31, 2022,” tweeted Maneck Davar, Chairman, SEPC on Thursday.
Capping SEPC entitlements at ₹5 crore per entity means that it is the small and medium exporters that would benefit most as their entitlements would be much less and may fall within the ₹5 crore limit. Larger exporters with higher entitlements, however, will have to forego the part of their entitlement that is higher than ₹5 crore.
Under SEIS Scheme, exporters of selected services are entitled to a 3-5 per cent incentive on the Net Foreign Exchange earned in the form of duty credit scrips. These SEIS scrips can be used to pay import duty or can be encashed by selling it to any importer.
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