21 Feb 2018

Frequently Asked Question on SOFTEX Form

Frequently Asked Question on SOFTEX Form

 

  1. In how many days Duplicate copy need to be submitted to the Authorized dealer.

Answer: Within 21 days from the date of the certification.

  1. What is time limit of Submission of Softex Form

Answer : Within 21 days from the date of raising of the invoice. If more than one invoice against one Client and country is raised, this can be covered in one Softex Form and submitted along with Statement of Invoice consisting the details of all those invoices and total Value of Export declared may be put in Softex.

  1. What supporting documents are to be submitted along with the SOFTEX Form?

Answer : a. Copy of Gist of Contract/Contract between unit and client abroad.

  1. Invoice/ Statement of Invoice along with invoices need to be attached with SOFTEX Form.
  2. Following Backup information to be submitted along with softex forms :-
      1. Area of Exporting Company(in Sq feet)
      2. Brief description of the Software development activity and exported to the client.
      3. Manpower deployed for the above activity.
      4. Capacity of Datacom link used along with data bits transferred.
      5. Details of computing platform used.
  3. Non STP Service Charges payment details statement (in case of Non-STPI units only).

 

 

 

 

 

  1. When Invoice need to be raised for Export Service.

Answer : As per  RBI Circular( A.D.(M.A. Series) Circular No 1 dated 8 Jan 1999) under Terms of Payment for Long duration contracts involving series of transmission, the exporter should bill their overseas clients periodically, i.e at least Once a month, or on reaching the “milestone” as provided in the contract entered into with the overseas client and the last invoice/bill should be raised not later than 15 days from the date of completion of the contract.  It would be incumbent on the exporters to submit a combined SOFTEX Form for all the invoices raised in a month on particular client, including advance remittances received.

  1. For invoice values less than $25,000, one need not to submit SOFTEX. Does it mean that we are not required to submit SOFTEX form with STPI?

Answer : Invoices raised for export of software or value less than USD 25,000 –through datacomm need not submit softex forms.
For more details referred to :-
a. Exports Regulations under FEMA, 1999 
b. Notification No FEMA 23/2000-RB & Notification No FEMA 14/2000 dated 3rd May 2000.
c. Master Circular No.6 dated 1st July 2010 

  1. Delay in Submission of Shipping Documents by Exporters to Authorised Dealer.

Answer : In cases where exporters present documents pertaining to exports after the prescribed period of twenty one days from date of export, authorised dealers may handle them without prior approval of Reserve Bank, provided they are satisfied with the reasons for the delay.

  1. Is Softex forms necessary for software/services exports?

Answer : Yes, Export of software and service through datacomm as required to declared to the authorities in softex forms.