SEPC for adding more services under export incentive scheme to boost shipments
Services Export Promotion Council (SEPC) Director General Sangeeta Godbole has said that they have asked the commerce ministry to widen the scope of SEIS by including more services in the list like animation and VFX under audio visual services. Sh...
The foreign trade policy provides tax incentives under Service Exports from India Scheme (SEIS) to several services sector.
Depending on the nature of services, the government gives duty credit scrips or certificates. The scheme offers reward at 5 per cent or 7 per cent of net foreign exchange earned and covers service providers located in India.
"We have asked the commerce ministry to widen the scope of SEIS by including more services in the list like animation and VFX under audio visual services," Services Export Promotion Council (SEPC) Director General Sangeeta Godbole has said.
She said the council is working with the Commerce Ministry on the matter.
Currently, nine broad categories of services are there in the list, including professional, communication, construction, educational, environmental, tourism and transport.
"In each of these categories, we would like to add more services by broadening the list," she added.
Incentives to services exporters under the scheme during the 2018-19 stood at Rs 4,262.8 crore with a total of 6,376 number of SEIS scrips issued.
This incentive to exporters to offset infrastructural inefficiencies and associated costs involved to increase services export.
Scrips or certificates provided under the scheme can be used for payment of basic and additional customs duties on goods imported. These are freely transferable. If an exporter is not in a position to use the scrip, they can sold in open market.
Godbole said the council together with the ministry is working on several steps to boost the exports. They are organising a three-day Global Exhibition on Services (GES) in Bengaluru from November 26.
"The idea of this exhibition is to create a vibrant services market in India," she said, adding this time the council is organising e-sports nations cup and an international mooting competition for young law professionals on intellectual property rights (IPRs).
E-sports are organized video game competitions, especially among professionals.
The e-sports industry is expected to grow rapidly and in 2017 worldwide revenue generated in the segment amounted to USD 655 million, the Commerce Ministry said in a statement.
The market is likely to generate close to USD 1.8 billion in revenue by 2022, the statement added.
The regular monthly salaries of average pro-gamers may range from USD 1,000 to USD 5,000 apart from the money that they win from prizes.
For the exhibition, India has invited eSports federations from various countries.
Participants are expected from Indonesia, Vietnam, Nepal, Sri Lanka, Japan, Maldives, Saudi Arabia, New Zealand, Australia, South Africa and Korea
Godbole said India is poised to take advantage of this growing business through the entire eco-system of e-sports – in areas of player/ team management, coaches, streamers and venues.
"We have invited e-sports federation from seven countries including New Zealand, and Azerbaijan. And for IP competition, we have invited people from countries including Thailand, and Myanmar," she added.