Home       Top Rated       Submit Article     Advanced Search     FAQ       Contact Us       Lawyers in India       Law Forum     RSS Feeds     

Register your Copyright Online

We offer copyright registration right from your desktop click here for details.

Latest Articles | Articles 2014 | Articles 2013 | Articles 2012 | Articles 2011 | Articles 2010 | Articles 2009 | Articles 2008 | Articles 2007 | Articles 2006 | Articles 2000-05

Search On:Laws in IndiaLawyers Search

Mutual Consent Divorce in Delhi
We provide fast, cost effective and Hassle free solution.
Contact us at Ph no: 9650499965 (Divorce Law Firm Delhi)
File Caveat in Supreme Court
Contact Ph no: +9650499965

Main Categories
 Accident Law
 Animal Laws
 Aviation Law
 Bangladesh Law
 Banking and Finance laws
 Case Laws
 Civil Laws
 Company Law
 Constitutional Law
 Consumer laws
 Contracts laws
 Criminal law
 Drug laws
 Dubai laws
 Educational laws
 Employment / Labour laws
 Environmental Law
 family law
 Gay laws and Third Gender
 Human Rights laws
 Immigration laws
 Insurance / Accident Claim
 Intellectual Property
 International Law
 Juvenile Laws
 Law - lawyers & legal Profession
 Legal Aid and Lok Adalat
 Legal outsourcing
 Media laws
 Medico legal
 Pakistan laws
 Real estate laws
 Right To Information
 Tax Laws
 Torts Law
 Woman Issues
 Workplace Equality & Non-Discrimination
 Yet Another Category

More Options
 Most read articles
 Most rated articles

Subscribe now and receive free articles and updates instantly.


Published : September 01, 2016 | Author : Gayathrisankaran
Category : Tax Laws | Total Views : 2535 | Rating :

3rd year School of excellence in Law

SEZ Eligibility under SEIS Scheme

SEIS is one of the export promotional scheme under FTP2015-20.SEIS are export promotional scheme to encourage service providers towards export contribution, thereby helping the country towards inflow of foreign exchange. Served from India Scheme (SFIS) was replaced by SEIS.SEIS scheme applicable to service provider located in India unlike SFIS scheme applicable to Indian service providers. This article will explore the eligibility of SEIS scheme in SEZ area.

To avail benefit under SEIS the service provider should have prescribed Net Foreign Exchange earnings as follows:
• Service providers should have minimum Net Foreign Exchange earnings of $15,000

• Individual service providers should have minimum Net Foreign Exchange earnings of $10,000

Service provider must have IEC code at time of rendering service to avail benefits namely:
• Service Providers are entitled duty paid scrip which can be used for payment of Excise duty ,Custom duty and Service tax
• Rate of reward varies from 3% to 5 % of on realized FOB value of exports in free foreign exchange

Ineligible Categories under SEIS

• Receipt of repayment of loan
• Foreign exchange earned from Contract and regular employment
• Issuance of foreign currency bonds
• Foreign currency loans
• Foreign equities to ADR and GDR
• Service provided by Telecom sector

SEIS Eligibility

SEIS are applicable to all service providers of specified Service located in India. However, only services provided in the manner / mode specified at Para 9.51 of FTP 2015-20 (i) & (ii) are eligible, viz.
• Supply of a ‘service’ from India to any other country (Mode 1-Cross border trade);
• Supply of a ‘service’ from India to service consumers of any other country (Mode 2-Consumption abroad)

SEZ Ineligibility Under SEIS Was Removed

Amendment notified vide Notification No. 08/2015-2020 dated 04.06.2015 through which export turnover relating to services of units operating under SEZ Scheme or supplies of services made to such units has been deleted from the list of ineligible categories under SEIS thereby making supply of a ‘service’ from SEZ to other countries eligible for SEIS benefits

Supply of service located in DTA to SEZ units reward under SEIS eligibility The DGFT Policy circular no 1/2015-20 dated 11-6-2015 has clarified the eligibility of reward under SEIS in case of supply of service from SEZ TO other country and DTA to SEZ ad depicted from the following diagram:

According to Article 1 of Constitution of India, territory of India shall comprise of the territory of states, union territories specified in First Schedule and include other territories acquired.
Whether SEZ is a part of India? In Kamyab Overseas Private Limited & Ans Vs. Union of India & Ors.on 6th July 2010 it followed Essar Steel Limited & Anr. Vs. Union of India & Ors Gujarat High Court case and held as under
“There is a difference between customs territory of India and territory of India. A Special Economic Zone is very much within India. Even though Special Economic Zone may be deemed to be outside the customs territory of India for purposes, specified in Section 53(1) of the SEZ Act, it is not to be deemed outside the customs territory for the purpose of levy of customs duty. Export means taking out of India to a place outside India and import means bringing into India from a place outside India. Bringing any goods from any part of India to a Special Economic Zone is not import or export for levy of customs duty.”

From the above case laws, it is clear that SEZ is part of India. Goods transferred from any part of India to SEZ Zone is not treated as export for the purpose of levy of duty under Section 12 of Customs Act
In Re Tulysyan [2014(313) E.L.T 977(G.O.I)], It was held that there is no two terms namely “export” and “export outside India” There is only one term export .Hence there should not be any differential treatment of “export” and “export outside India”.

SEIS scheme under FTP 2015-20 is one the best export promotional scheme .Widening of applicability namely to Service provider located in India under SEIS is remarkable move and much better that SFIS scheme as it applies only to Indian Service providers. SEIS has removed the SFIS scheme disadvantage of non applicability of the scheme to foreign brand service of Indian Companies.

By Notification No. 08/2015-2020 dated 04.06.2015Service from SEZ was removed from ineligible category under SEIS scheme. However vide circular no 1/2015-20 dated 11-6-2015, it has been clarified SEZ to other country eligible under SEIS and DTA to SEZ is ineligible.

From above discussion, it is clear that SEZ is part of India and it will be a territory outside India only for authorized transactions From the preamble of SEZ act ,it is clear that it has been created for export promotion. SEIS scheme is also for export promotion. From 2(m) of SEZ Act, it can be ascertained that export includes supply from DTA to SEZ. There is also overriding provision under section 51 of the Act that SEZ act will prevail over other laws. Therefore, if benefits under SEIS are extended even to supply of service from India to SEZ, by way of amendment it will help to boost our economy.


1 2 3 4 5
Rate this article!     Poor

Most viewed articles in Tax Laws category
Interpretation of taxing statute as strict construction and exemption
Renting of Immovable Property - Service Tax
Export of Services- An analysis

Deductions Under Section 80d & 80e Of The Income Tax Act
Assessment of Income From House Property
Carry Forward and Set off of Losses
Regulatory Aspects of Venture Capital In India
The Bhopal Gas Tragedy: On Whether and How the Indian Companies Act, 1956 can be used to make a case for imposing social responsibility on corporations?
The Double Tax Avoidance Agreement between India and Mauritius
Vodafone vs. Union of India
Non Resident Indian under Income Tax Act, 1961
Silent Features of GST Bill 2016
General Anti Avoidance Rule GAAR - An Indian and International Perspective
Leviability of Sales Tax to Actionable Claim
Custom Valuation & Transfer Pricing
Most recent articles in Tax Laws category
Applicability and Exemption under Central Goods and Services Tax Act, 2017
Delegation of Taxation Power
NRIs, PIO and OCI to Share Tax Info Under FATCA/CRS Agreement
SEZ Eligibility under SEIS Scheme
Goods and Service Tax (GST) Working In India
Silent Features of GST Bill 2016
Why Tax Practitioners Bill Required For India
Non Resident Indian under Income Tax Act, 1961
Fearlessness of the Judiciary
Tax Implications on Business Reorganization Schemes
General Anti Avoidance Rule GAAR - An Indian and International Perspective
Comparables and Transfer Pricing
Interpretation of taxing statute as strict construction and exemption
Feasibility of GAAR for removing the practice of Tax Avoidance
Tax chages in Nepal by Finance Act 2067
Carry Forward and Set off of Losses

Article Comments

there are no comments...

Post Your Comments


Your comments

Note : Your email address is only visible to admin, other members / users cannot see it.

You can use following FXCodes

BOLD : [b]
Italic : [i]

[b] Legal Services India [/b] is a [i]nice website[/i].
[url= http://www.legalservicesindia.com/article/ ]click here to visit.[/url]

Legal Services India is a nice website.
Click here to visit


Note : Currently, user comments are moderated and will be posted only after approval.

Please login or register a new free account.

Random Pick
The basic criterion on which the whole Listing Agreement based is Corporate Governance. Currently there are 54 Clauses in the Listing Agreement and all of them based on this very concept. Further, there is a clause which specifically deals with Corporate Governance i.e. Clause 49....

» Total Articles
» Total Authors
» Total Views
» Total categories

Law Forum

Legal Articles

Lawyers in India- Click on a link below for legal Services

lawyers in Chennai
lawyers in Bangalore
lawyers in Hyderabad
lawyers in Cochin
lawyers in Pondicherry
lawyers in Guwahati
lawyers in Nashik

lawyers in Jaipur
lawyers in New Delhi
lawyers in Dimapur
lawyers in Agra
Noida lawyers
lawyers in Siliguri

For Mutual consent Divorce in Delhi

Ph no: 9650499965
For online Copyright Registration

Ph no: 9891244487
Law Articles

lawyers in Delhi
lawyers in Chandigarh
lawyers in Allahabad
lawyers in Lucknow
lawyers in Jodhpur
Faridabad lawyers

lawyers in Mumbai
lawyers in Pune
lawyers in Nagpur
lawyers in Ahmedabad
lawyers in Surat
Ghaziabad lawyers

lawyers in Kolkata
lawyers in Janjgir
lawyers in Rajkot
lawyers in Indore
lawyers in Ludhiana
Gurgaon lawyers


India's Most Trusted Online law library
Legal Services India is Copyrighted under the Registrar of Copyright Act ( Govt of India) 2000-2017
 ISBN No: 978-81-928510-1-3