ELIGIBILITY CRITERIA UNDER SEIS
ELIGIBILITY CRITERIA UNDER SEIS- The minimum winnings are set at $15,000. The minimum net free foreign exchange earnings for the preceding financial year should be $10,000 to be liable for the Duty Credit Scrip in the case of sole proprietorship company and individual service providers.
Basically there are 4 categories in which services can be delivered/exported:
|Category-1||Category -2||Category -3||Category -4|
|Cross border trade of eligible services from one country to the other country.||Consumption of services abroad||Commercial presence of services of one country in the territory of another.||Presence of natural person of one country providing their service in the territory of another|
It is pertinent to note that only the first two types of services are covered under SEIS and can take the incentive under the scheme.
Further, Service providers also required to satisfy below conditions for obtaining the benefits under SEIS.
- Service provider must be located in India.
- He must hold an IEC number.
- If he is both ie., manufacturer as well as a service provider then the net foreign exchange earned by him shall be considered for services only.
- Forth and the most vital condition can be defined as follows:
|IN CASE APPLICANT IS A COMPANY, LLP OR A PARTNERSHIP FIRM||IN CASE APPLICANT IS AN INDIVIDUAL OR SOLE PROPRIETOR|
|Minimum of $15,000 net free foreign exchange earnings shall be there in the previous financial year to apply for the application to get rewarded.||Minimum $10,000 net free foreign exchange earnings shall be there in the previous financial year to apply for the application to get rewarded.|
Here the term “Net Foreign exchange earnings” defined as under:
Net Foreign Exchange= Gross Earnings of Foreign Exchange (minus) Total payment/expenses/remittances of Foreign Exchange by the Service provider, relating to services in the Financial year.