Filing of Softex Form by Exporters of Software and IT Enables Services

Export of Softwares and IT Enables Services

 

Exporters of softwares or IT enables services are required to file Softex Forms. Following type of exporters are required to file Softex Form:

 

  • Exporters registered under STP and SEZ must file SOFTEX form to value the software exports done by exporter.
  • Some exporters of Software i.e. both IT and ITeS companies that are not registered in STP or SEZ or other EOU schemes scheme must also file SOFTEX, according to foreign trade policy. Such exporters are commonly called non-STP units and can file the SOFTEX form with the concerned jurisdictional STPI Director. Exports of services that do not fall under IT and ITeS category are not liable to file the export declarations or the SOFTEX form.

Registration under STPI through Letter of Permission:

 

Any company/partnership firm/proprietorship which is into development of Export oriented Computer Software/IT Enabled Services can register itself as NON-STP unit under STPI to avail Softex Certification.

 

In order to become a NON-STP unit under STPI, the company has to get register itself with STPI on submission of application form along with the supporting documents, to the jurisdictional Director, STPI along with applicable processing fee of Rs.1000/- plus taxes as applicable.

 

As per RBI Master Circular No. RBI/2013-14/14 dated 1st July 2013 (Para B 15), RBI Circular No.80 dated 15th February 2012 and RBI Circular No.43 dated 13th September 2013, any company who does IT/ITES exports through Data communication links needs to submit the Softex Form for certification.

 

For getting the Softex certification by STPI (which is the Designated Authority), the companies have to become STP members by either registering under STP scheme or as NON-STP unit with STPI. Nevertheless, the companies registered under STP scheme will have other benefits apart from getting their Software Exports certified.

Validity Period of Letter of Permission:

 

Letter of permission for Non STP registration is valid for a period of 3 years. The letter of permission is required to be renewed 3 months prior to the expiry of the validity by submitting the application to the Director STPI.

Registration of Export Contracts with STPI Prior to submission of Softex Forms

 

Non-STP units should register each of their export contracts prior to submission of Softex against that contract. Unit also need to submit its projected imports during the next financial year as well as applicable STPI service charges.

Submission of Softex Forms with STPI

 

A common monthly Softex in the form of Excel summary sheet as prescribed by RBI can be filed for all invoices raised in a month. The Softex is required to be filed within 30 days from the date of last invoice raised in that month.

Cancellation of earlier submitted Softex Form

 

The Softex is required to be filed within 30 days from the date of last invoice raised in that month. But there are situations during which the transaction/ invoice raised might not receive the desired remittance like credit note raised, penalty raised by foreign company or complete cancellation of software project by foreign client. Hence, the unit should approach regional RBI office for cancellation of certified Softex Forms. Once RBI issues the approval of cancellation of particular Softex forms, the same may be reported to the concerned STPI center.

Periodic Reports to be furnished by Non-STPI Units registered with STPI

 

Non-STPI Units registered with STPI are required to submit Quarterly Performance Report and Annual Performance Report to respective STPI as per the prescribed format.

Disclaimer: The information contained in this Article is intended solely for personal non-commercial use of the user who accepts full responsibility of its use. The information in the article is general in nature and should not be considered to be legal, tax, accounting, consulting or any other professional advice. We make no representation or warranty of any kind, express or implied regarding the accuracy, adequacy, reliability or completeness of any information on our page/article. 

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