SOFTEX FORMExporting thegoods and services to other countries for sales purpose is called Export.
Physical goods are exported through sea and air which is monitored by theCentral Customs Department. Software products like DVD, CD, and magnetic tapes arealso exported as physical goods. What is SOFTEX Form?After thearrival of the scheme Software Technology Park (STP) in the 1990s, datacommunication links have been the medium of exporting software. As thistransaction is not visible, the customs department felt difficulty to managesuch software exports through telecom links.DeitYfacilitated an innovation in Government policy and RBI announced SOFTEX form asa substitute for GR- Guaranteed Remittance/PP forms. Software Technology Parks of India (STPI) is the administrative authority of STP scheme, has become theauthority for “Software export valuation” and certifying the SOFTEX form in theCustom’s place. Currently, SOFTEX valuation is done by the STPI JurisdictionalDirectors, SEZ Commissioners.
The SOFTEX form’spolicy, purpose, and process are as same as in GR/PP forms.There is an onlyone point differing from GR/PP and SOFTEX form is exporting the product fromthe shipment area and GR/PP form submission and valuation happensimultaneously. But, in SOFTEX Form case, after exporting the software only theform is approved.Who has to file the SOFTEX Form?Exporters whoregistered under SEZ and STP should file SOFTEX form for evaluating thesoftware exports done by an exporter.Softwareexporters, including both IT and ITES companies who have not registered underSTP or SEZ or EOU schemes, must file the SOFTEX based on the foreign tradepolicy. These exporters are called non-STP units who can file their SOFTEX formswith the concerned Jurisdictional STPI Director. If the export does not fallunder IT, ITES category then there is no need to file the SOFTEX of Exportdeclaration form.
When theexporter fails to file SOFTEX form, then the export will be treated as eitherGeneral Services or illegal export. On the other hand, the Bank could freezethe account if the SOFTEX form is not filed on time. There is no declarationnecessary for General services such as Technical Services and Managementconsulting. How to submit SOFTEX form inIndia ?The SOFTEX forms, invoices, supportingdocuments as per the checklist have to be submitted within 30 days from theinvoice date along with a covering letter as per the given format.
Every field of the SOFTEX form should beproperly filled and the authorized signatory has to sign and seal. Overwritingshould be avoidedSection B of SOFTEX form has to be filledwith relevant documents for the case of RoyaltyCopies of PO/WO/ Agreement must beenclosed. The corresponding documents must be submitted after amending or renewingany agreement/contract/order. The authorized person should sign and seal thecopies.SOFTEX form with a different buyer’s nameor address will not be accepted. However, multiple invoices with the samebuyer’s name, address can be clubbed in a single SOFTEX form.
The Invoice should contain PO Ref no./ WORef no./project id/project name, work description in brief as per the PO(Purchase order) /WO (work order) /AgreementCertified true copies of ‘Summary of SOFTEXforms/Invoices’ as per Annexure I should be enclosed when submitting SOFTEXmultiple forms OR one SOFTEX with multiple invoices and that should betriplicate.One Certified Copy of Back up form as perAnnexure II should be attached with each SOFTEX form.
One Certified Copy of “Datacom ServiceProvider” certificate as per Annexure III with one application should beattached. If the certificate fails to cover invoice period, the Internet billfor the invoicing month or one month before can be attached.If export made for the first time, Import-ExportcertificateIf the amount is realized, attach FIRC (ForeignInward Remittance Certificate) copies
