In Foreign Trade Policy 2015-20, Government has introduced majorly two Schemes for exports of merchandise and services viz.:
(i) Merchandise Exports from India Scheme (MEIS),
(ii) Service Exports from India Scheme (SEIS)
Merchandise Exports from India Scheme (MEIS)
Such incentives are given to exporters at a specified rate which varies depending on product and country to export. The percentage of inc entives offered varies from product to product and are in the width of 2% to 5% for most items in free foreign exchange or FOB value of exports as given in the Shipping Bills in free foreign exchange, whichever is less.
Service Exports from India Scheme (SEIS)
The objective of SEIS is to encourage entities exporting notified Services from India. Said incentives are in range of 3-5% where major services are covered in range of 5%. Eligibility criteria to avail such incentives is Minimum net free foreign exchange earnings of USD 15,000 in the preceding year whereas For Individual Service Providers and Sole Proprietorship minimum USD 10,000/- in the preceding year.
Duty Credit Scrips
The incentives awarded to exporters under this scheme are given in the form of Duty Credit Scrips. These Duty Credit Scrips are freely transferable and can be used by any importer for the payment of Customs Duty. As they are freely transferable, such scripts can be easily sold to any other person.
Procedure for recording Application under MEIS Scheme
- Application for claiming incentives under the MEIS Scheme will be recorded online in the prescribed format
- The application for export of products will be recorded with the concerned Regional Authority of DGFT on DGFT Website.
- Separate application will be petitioned for each port of export.
- An application can be recorded with upto a limit of 50 shipping bills
- If there should be an occurrence of exports through the EDI Port. Only the verification of landing is required to be submitted.
- EDI shipping bill and e-BRC to be connected with the online application.
- In the event of exports through non EDI-port, the printed version of the fare advancement duplicate of non-EDI shipping bills and evidence of arriving in the endorsed way is required to be submitted. Be that as it may, the hard duplicates of uses to DGFT, electronic bank acknowledgment endorsement (e-BRC) and RCMC isn’t required to be submitted. Filtered duplicates of some other recommended records for guaranteeing scrip are required to be submitted.
- The archives which are not required to be submitted (in unique), are required to be held by the candidate for a time of 3 years from the date of issuance of crip. The permitting specialist may call for such records in unique whenever inside 3 years.
- If there should be an occurrence of inability to present the first reports when requested by the authorizing personnel, the rewards allowed are required to be discounted alongside intrigue.
- No manual entries are permitted into account EDI Shipments to the candidates in the online framework.
- ” Let Export Date” to be taken as the important date for assurance of qualification of item, relating ITC (HS) code, and markets for guaranteeing rewards under MEIS.
Procedure for recording Application under SEIS Scheme
1.Application form ANF 3B and Annexure to ANF 3B as prescribed vide public notice no. 15/2015-2020 dated 28th June, 2018, must be filed.
- In case the applicant is engaged in providing various services, the applicant needs to classify the eligible services as given in Appendix 3D and furnish ‘Service Category Information’ in the form ANF 3B.
- The applicant has the right to choose Jurisdictional Regional Officer on the basis of address on IEC.
- List of documents for SEIS incentive benefits to be attached
- Copy of FIRC
- Copy of IEC
- A. Certificate
- List of directors if entity is body corporate
- Board resolution
- Copy of RCMC
- Statement of Forex earning yearwise.
- Copy of invoices.
We at EasyLegalTax are committed to help our clients in availing said benefits. For any issues/clarification, feel free to contact our domain expert at +91 9015546669
Disclaimer:–The article is intended for the awareness and education of the readers, if any of reader is intended to use above in any legal work, it is advisable that before placing their reliance on it they reconfirm it from the legal experts.
About Author:- CA Udit Aggarwal (FCA, LLB, BCOM) is Chartered Accountant and Legal Consultant, academically he is highly qualified and have gone through various certifications. He extensively speaks and writes on finance, taxation and legal matters. The author can be reached at email@example.com