DEL/285/2019/ALLM/26                                       3rd August 2019

To All Members,

Dear Colleagues,

Sub:  Service Exports from India Scheme  - Withdrawal of Additional 2% SEIS rates  with effect from 1st August 2019

As you are aware, under the Foreign Trade Policy 2015-2020, some incentives were announced in the form of Duty Credit Scrip by the Ministry of Commerce for the Services Sector including tour operators, travel agents, hotels, etc. under Service Export from India Scheme (SEIS). The rate of reward under SEIS for the tour operators was 5% of net foreign exchange and this was initially  valid  till   31st March 2017.

The Ministry of Commerce and Industry, Government of India vide Public Notice no. 45/2015-2020 dated 5th December 2017 extended the  validity of SEIS  upto  31st March 2018.  The rate of reward under SEIS was allowed at 7% of net foreign exchange earning from 01.11.2017 to 31.03.2018 as against 5% rate upto 31.10.2017.

The list of services / rate  of reward under SEIS  was  subject to review  with effect from 01 April 2018.   The Govt.  continued the enhanced reward rate of 7%  upto 31.03.2019 and it continued even  thereafter. In the meeting held by the  Revenue Secretary with  Commerce Secretary and DGFT  on 10.06.2019, it  was  decided  to continue  the additional 2%  SEIS reward   for a period of one  or two months as  a transitory measures in the interest of exporters.  

It is to inform all of you that the Ministry of Finance / Ministry of Commerce,  Government of India has withdrawn the additional 2 % SEIS rate for all service providers including  tour operators  w.e.f. 1st August 2019.  The basic rate  of 5%  SEIS  will continue  to apply  after  01.08.2019.   In simple words,  the rate of   reward under  SEIS  has  been slashed from 7%   to  5%  w.e.f. August, 2019.

Members are requested to please make a  note of the above.

However, the Association will continue to take up the matter with  the Ministry of Finance,  Ministry of Commerce and the Ministry of Tourism   for special relief to  our industry. 

With best regards,

Sincerely,

Pronab Sarkar

President