January 24, 2019

Application Procedure For claiming SEIS export incentives

CA. Sachin Jindal

1. Introduction

With effect from 1st April 2015, ‘Service Export from India Scheme’ (SEIS) replaced the erstwhile ‘Served from India Scheme’ (SFIS). One can easily follow the procedure for claiming SEIS export incentives.

SEIS applies to ‘Service providers located in India’ instead of erstwhile ‘Indian Service Providers’. The main objective of SEIS is to provide benefits to all the service providers located in India, instead of only Indian Service Providers.

In the earlier articles, we have already seen the eligibility and ineligibility criteria and the available benefits under SEIS. Under the present article, we would analyze the procedure for claiming SEIS export incentives, along with the relevant due date and application processing time.

2. Important points and Procedure For claiming SEIS export incentives

An online application needs to be filed on the DGFT server and all the relevant fields of information need to be entered in the SEIS ECOM Module.

Application form ANF 3B and Annexure to ANF 3B are available online. It must be noted that, vide public notice no. 15/2015-2020 dated 28th June, 2018, new ANF 3B has been made effective.

In case the applicant is engaged in providing multiple services, the applicant needs to classify the eligible services as per Appendix 3D and furnish ‘Service Category Information’ in form ANF 3B.

Para 3.06 of the Handbook of Procedure 2015-2020 needs to be referred for identification of the applicable jurisdiction.

It is important to note here that SEPC RCMC (SEPC- Service Export Promotion Council and RCMC- Registration-cum-Membership Certificate) is mandatorily required in case of the service provider who wants to apply for SEIS.

Further, in case of the applicant being both manufacturer and a service provider, RCMC from the relevant export promotion council, connected to the mainline of business, is mandatory.

3. Documents to be attached with the application form

Documentary evidence relating to the payments which are being approved by the RBI as deemed to be received in the foreign exchange and deemed to be earned in the foreign exchange for the services in Appendix 3E.

In case there is a difference in the description of service as per the invoice and description of services in Appendix 3D/3E, then, in such a situation, the copies of the sample invoices for each of the different services need to be uploaded with the application.

List of documents required while following the Procedure For claiming SEIS export incentives

Copy of FIRC
Copy of IEC
C.A. Certificate
List of directors if the company is limited or Pvt. Ltd.
Board resolution
Copy of RCMC
Statement of Forex earning F.Y wise.
Copy of invoices.
Declarations.

3.1 Relevant due date

The SEIS application can be filed only on an Annual Basis. In other words, for each Financial Year only one application can be filed.

The due date for filing an application under SEIS is 12 months from the end of the relevant financial year of the claim period.

3.2 Application processing time

As per para 9.10 of the Handbook of Procedures 2015-2020, on receipt of the SEIS application, the department needs to dispose of it in 3 working days. Only in case of any deficiencies/discrepancies in the file, the longer processing time is allowed.

4. Risk Management System under SEIS

Under SEIS the risk management system, on a random basis, examines the correctness of the application and also evaluates the correctness of the grant of the reward based on the application.

The computer system in Directorate General of Foreign Trade (DGFT) headquarters, on a random basis, will select 10% of the applications for each Regional Authority (hereinafter referred to as ‘RA’) every month.

The selected applicants need to submit the original documents for further examination.

In case of any discrepancy / excess claim being observed during the examination, the applicant needs to rectify the discrepancy/refund excess claim in cash along with appropriate interest at the rates prescribed under section 28AA of the Customs Act, 1962.

The above referred payments need to be done within a period of 1 month.

The original holder of the scrips has an option to refund the excess claim by surrendering the same scrip whether partially utilized or fully unutilized. In such case, the original holder is not required to pay any interest.

Regional Authority may even ask for the original proof of following –

a. Landing certificate
b. Annexures attached to ANF or any other document which has been uploaded digitally, or
Any other export related documents related to the application

The original proof can be called for at any time within a period of 3 years from the date of issue of the scrips.

If the applicant fails to submit the original documents, then, in such case the applicant would be liable to refund the reward granted along with appropriate interest from the date of issue of the scrips.

DISCLAIMER: The views expressed are strictly of the author and VJM & Associates LLP. The contents of this article are solely for informational purpose. It does not constitute professional advice or recommendation of firm. Neither the author nor firm and its affiliates accepts any liabilities for any loss or damage of any kind arising out of any information in this article nor for any actions taken in reliance thereon.

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