Developed Software can be exported through Data communication Link or physical Media and software can be developed at customer site abroad by deputing software professionals of the unit.
Developed Software export From India by STP Setup Unit
Procedure for SOFTWARE Export
The valuation of Software Export declared on SOFTEX Form & Physical Export will be done by the designated official of DoE at the Software Technology Parks of India (STPI). Time limit for realisation of Export Value & Invoicing In respect of long duration contracts involving series of transmissions the exporter should bill their overseas clients periodically i.e., at least once in month or on reach the milestone as provided in the contract entered into with the overseas client and last invoice/bill should be raised not later than 15 days from the date of completion of the contract.
In respect of contract involving only ‘One shot operation’ the invoice/bill should be raised within 15 days from the date of transmission.
The exporter should submit SOFTEX form to the concerned official of the Govt. of India at STPI for valuation/certification not later than 30 days from the date of invoice/the date of last invoice in a month as indicated above.
The full value of the software exported as declared on the SOFTEX form or as certified by the officials concerned of Government of India, whichever higher should be realised on due date of payment or within 180 days from the date of invoice which ever is earlier.
- Off-Shore Services
- Disposalof SOFTEX Form
- Check List for Export Declaration
- Checklist for the Invoice enclosed with Softex forms in respect to
- Exports through Physical Media
- Check list for Export Declaration (Physical)
Export of computer software in non-physical i.e., Export through Datacom./Satellite links form should be declared on SOFTEX form. Each set of SOFTEX forms comprises three copies marked, Original, Duplicate and Triplicate, which carry a identical pre-printed number. All the three forms in each set should be completed and the entire set submitted for the purpose of certification together with relevant documents. Each exporter will have to designate a single branch of an authorized dealer to whom export documents in respect of all software exports made via dedicated earth stations / satellite links will be submitted by him together with the relative SOFTEX forms for negotiation / collection.
Disposal of SOFTEX Form
- After certifying all three copies of SOFTEX Forms the designated DoE Official will forward the original directly to the nearest office of the Exchange Control Department of Reserve Bank. The duplicate will be returned to the exporter and the triplicate will be retained by the DoE for their record.
- Within 21 days, from the date of certification of SOFTEX Form by DoE the exporter should submit the duplicate copy together with a copy each of the supporting documents to the authorized dealer. The duplicate copy of the form together with documents will be retained by the authorized dealer till full export proceeds have been realized and repatriated and thereafter will be submitted to Reserve Bank, duly certified under cover of an appropriate R return along with the copy of invoice/s.
Check List for Export Declaration STP Unit are required to file a copy of Purchase Order / Agreement / Contract with STPI as soon as the STP unit enter into purchase agreement with their client. This can be done one time before raising the first invoice.
- Check for Softex form is neatly typed.
- Check for the Address of the Exporter.
- Check for the STPI Center Address.
- Check for the Importer and Exporter Code number.
- Check for the Buyer’s name and address.
- Check for the Date and Number of Invoice.
- Check the Purchase Order is submitted to STP authorities.
- Confirm is there any Royalty i) Check the Data Comm. Service Provider (STPI / VSNL / DOT / Internet / Others)
- Check for the Software Category is defined (906, 907, 908, 909, 910 & 911).
- Check for the Export Value Currency and Amount as per the Export Invoice and Agreement / Contract / Purchase Order.
- Check for the Authorised Dealer and Code No.
- Check if any Royalty on Software Packages / Products Exported.
- Check for Section "C" for Signature, Date, Name Designation, and Official Rubber Stamp of the Exporter.
Checklist for the Invoice enclosed with Softex forms in respect to
- Buyers name and address should be cross verified with export order
- Check for Invoice No. & Date.
- Check for Importer’s and Exporter’s Code Number.
- Check for Data Comm. Services (STPI / VSNL / DOT / Internet / Others).
- Check for the Export Destination
- Check for Export / Agreement / Contract / Purchase Order No. & Date.
- Check for Currency and Amount
- Check for Banker’s Name and Address.
- Check for Authorised Dealer’s Code No.
- Check for the Authorised Signature
A request letter with relevant forms and corresponding invoices based on media of Exports should be submitted to STPI for certification
Exports through Physical Media :
If Export of computer software is undertaken in physical form i.e., software prepared on magnetic tapes and paper media the same needs to be declared in EDI with two copies of invoice/bill for certification Check list for Export Declaration (Physical)
- STP unit are required to file a copy of Purchase Order / Purchase Agreement /Contract with STPI as soon as the STP unit enter into Purchase Agreement with their client. This can be done one time before raising the first invoice.
- The Floppy / CD / Cartridge any other mode of Software has to be submitted to STPIB for Examination and verification for the Certification of Physical Exports.
The Invoice should be submitted in Duplicate (the invoice should be as per the Customs guidelines).
- A request letter with relevant forms & corresponding Invoices based on media of Exports should be submitted to STPI for certification Procedure for Reimbursement of CST.
- The units are required to obtain Sales Tax Registration from the concerned office of Sales Tax who will issue a Sales Tax Registration number (CST/ST No.). This number is necessary for doing DTA sales as well as claiming reimbursement of CST paid on the goods procured within the country. Govt. of India has empowered Department of Electronics to reimburse the same to STP units.
Any local purchase within the country should be made against C-Form available from the Sales Tax authorities.
For the purpose purchased against C-Forms units will maintain a ‘Material Receipt Register’ which must show the details of goods, quantity, the source of purchase and the C-Form against which purchase is made.
STP/EHTP units will be entitled to full reimbursement of Central Sales Tax paid by them from the funds of Market Development Assistance (MDA) on purchases made by them from the DTA, to be utilised for export production, on the following terms & conditions :
The Supplies from DTA to STP/EHTP units must be utilised by them for production of goods meant for export and /or utilised for export production and may include raw material, components, consumable, packing materials, capital goods, spares material handling equipment etc., on which CST has been actually paid by STP/EHTP units.
- As soon goods are received by the STP/EHTP units in its premises it will be entered in the material receipt kept for the purpose. The register must show the details of goods, quantity, the source of purchase and the C form against which purchase is made etc., A Self attested copy of the register relevant to the claim shall be submitted alongwith the claim.
- The reimbursement of CST shall be admissible only to those units who get themselves registered with the Sales Tax Authorities in terms of Section 7 of the CST Act, 1956 read with (Registration and Turnover) Rules, 1957 and furnish a Photostat copy of the Registration Certificate issued by the Sales Tax Authorities.
- The unit shall present its claim for reimbursement of Central Sales Tax in the prescribed form in supported with Chartered Accountant certificate (format is at annexure XXVI & XXVIA) to STPI for processing along with the following documents :
- Original Invoice/Bill along with AR-3 of the supplier showing details regarding the description of goods, quantity, value, amount of CST paid etc., and the CST registration number of both the buyer and supplier;
- Photostat copy of C form issued by the purchaser to the supplying unit which will be attested by the Gazetted Officer of the Zone with reference to the counterfoil produced by the unit. The counterfoil of C form will be returned to the unit after making suitable endorsement like ‘Cancelled/CST reimbursement’ duly signed by the authorised officer of the zone administration and the Photostat copy will be retained by the officer for keeping in respective file;
- Original receipt (alongwith Photocopy) issued by the supplier in token of having received the amount of the bill, including the CST, which will be compared and attested by the concerned officer of Zone Administration with reference to the original produced by the unit. The original receipt will, however, be returned to the unit after making necessary endorsements thereon such as "Canceled and CST of RS...... reimbursed" duly signed by the authorised officer of the zone and the photostat copy will be retained in the concerned file. In case original receipts are not available and payment was made through bank, a certificate from Bank showing the payments specifically against the invoice shall be submitted. The amount paid and the invoice amount should tally;
- The reimbursement will be limited to the payment of CST against C form only;
- The unit shall also intimate the name of the persons who are authorised by the firm to sign the C form and furnish three copies of his/their specimen signature(s) which will be kept in the relevant file of the unit;
- The reimbursement will be made on quarterly basis. No claim for period of six months from completion of the quarter in which the claim has arisen. In exceptional cases, on application, The Director STPI may consider delayed application after satisfying that the delay was due to genuine grounds. Claims delayed beyond one year will be summarily rejected.
- The claim for CST reimbursement for the amount below Rs 25/- on any singly invoice