Cap of ₹5 cr. on benefits riles industry
Bringing some relief to services exporters, the government on Thursday notified the benefits to be given for exports undertaken in 2019-20, but capped entitlements at ₹5 crore per exporter under the Service Exports from India Scheme (SEIS).
The flow of SEIS benefits from 2018-19 and 2019-20 will ease the credit burden of such firms, especially for players in the travel, tourism and hospitality sectors that have been hit hardest in the pandemic.
However, the ₹5-crore ceiling needs a rethink, exporters said. “The service-export industry was waiting for the rates to be notified for SEIS benefit since a long time,” said Abhishek Jain, tax partner at EY, adding the value cap ‘seems to be quite upsetting’ for the industry.
FIEO president A Sakthivel said the exporters’ body would take up the issue of cap with the government.
“Services sectors have been impacted much during the pandemic and require a little more support,” he told The Hindu.
Source: Read Full Article