Anxious wait of Service providers who earn Foreign Exchange of 2019-20 finally ended when DGFT finally notified the eligible services and rates to claim SEIS incentive. Amid serious budget constraints, maximum entitlement under SEIS has been capped at Rs. 5 crores per IEC for services rendered in the period April 1, 2019, to March 31, 2020.
As announced previously the deadline for submission of SEIS applications for 2019-20 will remain till 31.12.2021 (extended to 31.01.2022/28.2.2022), and after that, it will become time-barred, with no benefit of extension even with deductions. A few services like management consulting have also been removed from the list.
We believe the idea is to (a) remove those services that have very wide interpretations and thus reduce no. of applications and (2) remove very large applicants who have been taking away lion’s share of the whole budget.
The revised list will have the following under 5% category:
– Professional services (like legal, taxation, engineering, veterinary and urban planning);
– Research and Development;
– Communication (radio and television, sound recording);
and following under 3% category:
– Investigation and security,
– Printing & publishing
– Hotel & Restaurants
The services which are removed for the FY 19-20 are:
Service providers who earn foreign exchange are advised to apply as soon as possible to be able to avail of the benefit.
For notification, pls click here SEIS 2019-20
DGFT Office has recently announced that 31.12.2021 is the last date for submission of SEIS applications as per the below criteria:
|Scheme||Financial Year||Late Cut in %|
Since the Ministries will keep watch on the outgo, you are advised to ensure filing your claim as soon as possible.
Recently on 09.09.2021 thru a press release and tweet, The Government announced that they have allocated the fund of Rs. 10,002 crores to SEIS scheme and arrears of it. As per the PN of Ministry of Commerce and Industry –
Service sector exporters, including those in the travel, tourism and hospitality segments will be able to claim SEIS benefits for FY 2019-2020, for which Rs 2,061 crore has been provisioned. The SEIS for FY 2019-20 with certain revisions in service categories and rates is being notified. This support would have a multiplier effect and spur employment generation.
On 16.06.2021, the Finance Ministry gave concurrence to the proposal of the Commerce Ministry for the continuation of Services Exports from India Scheme (SEIS) for 2019-20 with a financial allocation of Rs.2,061 crore, subject to the condition that the amount will be provided through expenditure budget following the procedure of providing a new minor head.
Since a considerable time has passed, we expect that the O/o DGFT will now any day announce the rates & eligible categories to avail SEIS benefit on foreign exchange earnings in FY 2019-20.
Seeing the current situation, we also anticipate strict scrutiny of the eligibility criterion as per the policy and CPC as well as documentation this time. To make the claim process hassle-free and smooth, we think pre-analysis of the documents will be a wise step.
To know more please click the following:
|1||23.09.2021||Service Exports from India Scheme (SEIS) for services rendered in the Financial Year 2019-20|
|2||16.09.2021||Ministry of Commerce has announced the last date for submission of applications of SEIS|
|3||09.09.2021||Release of Rs. 56,027 Cr Under various Export Promotion Schemes|
|4||08.07.2021||Acceptance, processing and issuance of claims under MEIS,SEIS,ROSL,ROSCTL in the DGFT|
|5||30.06.2021||SEPC announcement for 2019-20 SEIS approval|
|6||16.06.2021||Finance minister concurrence for the continuation of SEIS with the financial allocation of Rs. 2,061 crore|
|7||22.04.2021||SEPC proposed for an alternative to SEIS to support the service sector|
Keep watching our SEIS for FY 2019-20 page for more information and updated news on SEIS.
In case you need any advice/assistance, please feel free to call or write to us at email@example.com