SOFTEX file SOFTEX form for evaluating the software

SOFTEX FORM

Exporting the
goods and services to other countries for sales purpose is called Export.
Physical goods are exported through sea and air which is monitored by the
Central Customs Department. Software products like DVD, CD, and magnetic tapes are
also exported as physical goods.

We Will Write a Custom Essay Specifically
For You For Only $13.90/page!


order now

What is SOFTEX Form?

After the
arrival of the scheme Software Technology Park (STP) in the 1990s, data
communication links have been the medium of exporting software. As this
transaction is not visible, the customs department felt difficulty to manage
such software exports through telecom links.

DeitY
facilitated an innovation in Government policy and RBI announced SOFTEX form as
a substitute for GR- Guaranteed Remittance/PP forms.

Software Technology Parks of India (STPI) is the administrative authority of STP scheme, has become the
authority for “Software export valuation” and certifying the SOFTEX form in the
Custom’s place. Currently, SOFTEX valuation is done by the STPI Jurisdictional
Directors, SEZ Commissioners.

The SOFTEX form’s
policy, purpose, and process are as same as in GR/PP forms.

There is an only
one point differing from GR/PP and SOFTEX form is exporting the product from
the shipment area and GR/PP form submission and valuation happen
simultaneously. But, in SOFTEX Form case, after exporting the software only the
form is approved.

Who has to file the SOFTEX Form?

Exporters who
registered under SEZ and STP should file SOFTEX form for evaluating the
software exports done by an exporter.

Software
exporters, including both IT and ITES companies who have not registered under
STP or SEZ or EOU schemes, must file the SOFTEX based on the foreign trade
policy. These exporters are called non-STP units who can file their SOFTEX forms
with the concerned Jurisdictional STPI Director. If the export does not fall
under IT, ITES category then there is no need to file the SOFTEX of Export
declaration form.

When the
exporter fails to file SOFTEX form, then the export will be treated as either
General Services or illegal export. On the other hand, the Bank could freeze
the account if the SOFTEX form is not filed on time. There is no declaration
necessary for General services such as Technical Services and Management
consulting.

 

 

How to submit SOFTEX form in
India  ?

The SOFTEX forms, invoices, supporting
documents as per the checklist have to be submitted within 30 days from the
invoice date along with a covering letter as per the given format.

Every field of the SOFTEX form should be
properly filled and the authorized signatory has to sign and seal. Overwriting
should be avoided

Section B of SOFTEX form has to be filled
with relevant documents for the case of Royalty

Copies of PO/WO/ Agreement must be
enclosed. The corresponding documents must be submitted after amending or renewing
any agreement/contract/order. The authorized person should sign and seal the
copies.

SOFTEX form with a different buyer’s name
or address will not be accepted. However, multiple invoices with the same
buyer’s name, address can be clubbed in a single SOFTEX form.

The Invoice should contain PO Ref no./ WO
Ref no./project id/project name, work description in brief as per the PO
(Purchase order) /WO (work order) /Agreement

Certified true copies of ‘Summary of SOFTEX
forms/Invoices’ as per Annexure I should be enclosed when submitting SOFTEX
multiple forms OR one SOFTEX with multiple invoices and that should be
triplicate.

One Certified Copy of Back up form as per
Annexure II should be attached with each SOFTEX form.

One Certified Copy of “Datacom Service
Provider” certificate as per Annexure III with one application should be
attached. If the certificate fails to cover invoice period, the Internet bill
for the invoicing month or one month before can be attached.

If export made for the first time, Import-Export
certificate

If the amount is realized, attach FIRC (Foreign
Inward Remittance Certificate) copies