Service Export from India Scheme was launched in which of the following years?
Show answer & explanation
Correct answer: A
Explanation
The correct answer is Option 1: 2015.
Explanation:
The Service Exports from India Scheme (SEIS) was launched on April 1, 2015.
Background: This scheme was launched as part of India's Foreign Trade Policy (FTP) 2015-20. It replaced the previous scheme, the 'Served from India Scheme' (SFIS).
Objective: To encourage and promote the export of services from India. Under this scheme, service providers located in India are provided with rewards based on the Net Foreign Exchange earned by them.
Mechanism: Eligible exporters are provided with incentives in the form of 'Duty Credit Scrips,' which can be utilized for the payment of various central taxes and duties.
Key Features of the Scheme:
- Eligibility: This scheme applies only to service providers located in India, and not to individuals or entities located outside India.
- Reward Rate: Typically, this ranges between 3% and 7% of the net foreign exchange value of the exported services (this rate varies periodically based on the services notified by the government).
- Transferability: These Duty Credit Scrips are freely transferable; that is, exporters can also sell them to others.
Additional Facts:
MEIS (Merchandise Exports from India Scheme): Alongside SEIS, the 'Merchandise Exports from India Scheme' (MEIS) was also introduced for the export of goods.
Recent Change (RoDTEP): Currently, the government has replaced schemes like MEIS with the RoDTEP (Remission of Duties and Taxes on Exported Products) scheme to align with international trade regulations (WTO).
Potential Questions for Upcoming Exams:
Question: What is the full form of SEIS?
Answer: Service Exports from India Scheme. Question: In what form are incentives provided under the SEIS scheme?
Answer: Duty Credit Scrips.
Question: When did India's current Foreign Trade Policy (FTP 2023) come into effect?
Answer: From April 1, 2023.