SEIS ELIGIBILITY
DEFINITION
All services that are rendered in the manner of Mode 1 & Mode 2, are the only ones that are eligible for the SEIS Scheme. Services that fall under Mode 3 and Mode 4 are not eligible to claim SEIS Incentive.
The export of services to foreign customers can be undertaken through the following four modes:
- Mode 1 deals with cross border trade. (Supply of Service from India to any other Country).
- Mode 2 deals consumption abroad. (This means supply of a service from India to the service consumer of any other country (currently) in India).
- Mode 3 deals with commercial presence. (This means the supply of a service from India through commercial presence in any other Country).
- Mode 4 – The presence of natural persons. (Supply of a Service from India through the presence of natural persons in any other Country).
The service providers of notified services located in India, are the only ones eligible for the Service Export from India Scheme. The service exporter must have Active IEC to claim the SIES benefits.
The eligible service exporter which can be a company/LLP/Partnership, must have minimum net free foreign exchange earnings of 15,000 USD in the year of rendering services, to be applicable for the SEIS Scheme. Individuals and sole proprietors who want to apply under the Service Export from India Scheme need to have a minimum net free foreign exchange earnings of 10,000 USD to be eligible. SEZ Units are also eligible for SEIS Scheme. EOU, STP, BHTP, EHTP Units are not eligible to claim any SEIS incentives.
Some eligible services are permitted to accept Indian rupees towards their service charges instead of foreign currency, which shall be considered foreign exchange. A list of such services is provided in (Appendix 3E).
Any free foreign exchange earned through international credit cards and other instruments, as allowed by the RBI, must also be taken into account for computation of the value of exports.