MEIS (Merchandise Exports from India Scheme)
Benefit upto 7% of Export value
Under Foreign Trade Policy government has introduced new export incentive schemes under Merchandise Export from India Schemes to promote the export of goods and services. MEIS Scheme aims to offset infrastructural inefficiencies and associated costs involved in export of goods/products by providing credit in the form of duty credit scrips. under Export Incentive Scheme- MEIS scheme export can have benefit of up to 5% of FOB value of export , there percentage depends on factor of destination county and tariff classification of good. Latest policy extended this benefit to e commerce sector.
MEIS schemes are introduced with following objective
- To boost India’s export by offsetting infrastructural inefficiencies and associated costs involved
- To provide a level playing field to exporters
- To encourage international business
Nature of Reward: – Duty Credit Scrips shall be granted as rewards under MEIS. It will be freely transferable. Therefore, if exporter is not in position to use the Duty Credit Scrips, he can sell the same in market.
Highlights of MEIS
The MEIS scheme grants benefits of up to 5% as compared to earlier scheme. Exporter gets scrips upto 5% of export Duty Credit. Exporter can sell the same scheme scrip for cash in market.
Use Of Script
MEIS scheme grants benefits of up to 5% of exports. Exporter can use the credit scrips for specified indirect tax payments. MEIS Scheme defines for which payment exporter can utilize the scrips.
Sale of Scrips
Duty Credit Scrips shall be granted as rewards under MEIS. It will be freely transferable. Therefore, if exporter is not in position to use the Duty Credit Scrip, he can sell the same in market.
Validity of Script
Duty Credit Scrip shall be valid for a period of 18 months from the date of issue and must be valid on the date on which actual debit of duty is made. Exporters of Scrip to whom MEIS scrip has been granted
Export of goods through courier
MEIS benefit is also available to export of goods through courier or foreign post offices using E-commerce, as notified in Appendix 3C, of FOB value upto Rs 25,000/ consignment.
All export document should contain declaration that “we intend to claim rewards under MEIS”.Application to be filed in Form ANF 3A along with requisite document.
- Export Invoices
- Shipping Bills
- CA Certificate
- Financial Statements