Benefits Available to Export Oriented IT Company
Why is it important for countries to export services?
Exporting services provides an opportunity for export diversification and growth, which is important for economic stability. If global demand for one sector drops, a country with diversified exports can rely on others such as banking, transport, or business services.
Benefits Available to Export Oriented IT Company
1. Service Exports from India Scheme (SEIS):
2. GST benefits:
Exporters are entitled to the following refunds and benefits under the GST regime:
- Exporters are given a host of preferential facilities under the GST Act.
- They can make an export supply either “on payment of GST” or “without paying any GST” under the LUT bond facility.
- LUT Bond Facility - Exporters can export goods without paying any GST by obtaining a letter of undertaking/bond.
- IGST Refund - Exporters can export goods “on payment of GST” and claim the refund of the same from the Customs Department.
3. Gold Card Scheme:
Under this RBI scheme, banks offer exporters bearing good track records a Gold Card that comes with a three-year credit limit with automatic renewal, an additional 20% credit limit to meet sudden expenses, reduced banking service charges, relaxed security and collateral norms, and preference in granting of Packing Credit in Foreign Currency (PCFC), which is a type of pre-shipment finance.
4. Interest Equalisation Scheme (IES):
Another RBI scheme, IES extends pre- and post-shipment export credit (credit extended before and after shipment of the goods) at a 5% interest rate for MSME manufacturers and 3% for all other exporters.
5. Software Technology Park (STP) Scheme:
Disclaimer:
“The information contained herein is only for informational purpose and should not be considered for any particular instance or individual or entity. We have obtained information from publicly available sources, there can be no guarantee that such information is accurate as of the date it is received, or it will continue to be accurate in future. No one should act on such information without obtaining professional advice after thorough examination of situation.”
Prepared On:
19/12/22
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