No reward for ‘service’ by units in DTA to SEZ units under SEIS
Supply of a ‘service’ by units located in DTA (Domestic Tariff Area) to SEZ (Special Economic Zones) units are ineligible for rewards under SEIS (Services Exports from India Scheme). A notification to this effect was released by The Directorate General of Foreign Trade (DGFT) under the Ministry of Commerce and Industry, Department of Commerce on June 11, 2015 as a clarification to References that have been received by the DGFT enquiring whether or not supply of a ‘service’ by unit(s) located in DTA to SEZ unit(s) is eligible for rewards under SEIS. The notification also said that “Service Provider” means a person providing supply of a ‘service’ from India to any other country (Cross border trade) and ‘supply’ of a service to any other country only is eligible for SEIS benefits. It also added, since SEZ is ‘Indian Territory’ supply of a service to SEZs is ‘not eligible’ for rewards under SEIS. The notification further clarified that regardless of the amendment notified vide Notification No.08/2015-2020 dated June 4, 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 a ‘service’ by units located in DTA to SEZ units was and shall continue to remain ineligible for rewards under SEIS.
June 12, 2015 | 9:40 pm IST.
to success.