GREENVISSAGE HELPS BUSINESSES TO CLAIM
SEIS BENEFITS FOR THEIR SERVICE EXPORTS
SEIS is a way for tax
relief that aims to help
startups raise money.
India’s economy is one of the fastest growing economies in the world. As a part of economic reforms, the government has formulated many economic policies which have led to the country’s gradual economic development. Under the changes, there has been an initiative to improve the condition of exports to other countries. With this regard, the government has taken up a few actions to benefit businesses in the export trade. The primary objective is to encourage exports in order to earn foreign exchange and to keep domestic products competitive on in the global market.
Foreign Trade Policy (FTP) notified by the Director General of Foreign Trade (‘DGFT’) from time to time, prescribes various incentives and measures to promote export of goods and services from India. Some of the popular incentive schemes relating to exports are:
Manufacturer/Service exporters are eligible to avail the benefit of the above schemes. While MEIS scheme is intended to cut down the transaction costs for exports, EPCG and AA scheme are designed to enable manufacturer exporters to import capital goods and raw material without payment of customs duties.
Duty Drawback is a relief by way of refund of custom and excise duties paid on inputs or raw materials used in the manufacture of export goods. To entitle goods to drawback, they must be exported to a foreign port. Duty drawback provisions are given under section 74 and 75 of the Customs Act. Section 74 allows duty drawback on re-export of duty paid goods. Section 75 allows drawback on imported goods used in the manufacture of export goods.
The Duty Drawback is of two types: (i) All Industry Rate (AIR) and (ii) Brand Rate.
Drawback is not allowed when the assessee opts for Advance Authorisation Scheme. Therefore, it is advisable to analyse beneficial options before choosing any particular option.