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Exports seek benefits under SEIS as pandemic crushes revival of key services
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Synopsis
The Services Export Promotion Council (SEPC) has also said that the recent surge in Covid-19 cases has depressed all the hopes of any revival of key sectors like travel and tourism, medical value tourism, education and aviation.
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Services exporters have urged the government to issue the release of benefits under the Service Export from India Scheme for 2019-20 amid a 73% decline in exports of travel and tourism from April, 2020-February, 2021 due to the pandemic. SEIS was launched in 2015 to boost services exports. It offers incentives of 5-7% of net foreign exchange earned.
Synopsis
The scheme is touted as a replacement for the Service Export from India Scheme and is on the same lines as Remission of Duties and Taxes on Exported Products (RoDTEP) for goods exports.
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Aimed at refunding taxes already paid back to services exporters, DRESS is proposed to include all service exports created in India and exported from the country in modes 1 and 2 of service delivery.
NEW DELHI: Ahead of the new foreign trade policy, industy has proposed a new incentive scheme for services exports that would give higher benefits to exporters in the MSME sector.
The Services Export Promotion Council has suggested the government to consider a Duty Remission on Export of Services Scheme (DRESS) to refund taxes to services exporters wherein small and micro exporters would be eligible for a 7% incentive while the large ones would get 4%. The scheme is touted as a replacement for the Service Export from India Scheme and is on the same lines as Remission of Duties and Ta