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With the advent of globalization, several sectors have witnessed a drastic change in the last few years. Among all these sectors IT (Information Technology) sector is one good example, which has earned lot of lucrative benefits due to its sudden industrial growth. All across the globe companies are persistently demanding more and more computer professional services and computer software to run their program, but forwarding and exporting of computer software is not an easy task. For exporting the computer software from India or any other export of IT related service, we need to take approval from a government agency known as STPI (Software technology parks of India ) .
STPI agency was established in1991 by the Ministry of Communication and Information Technology. Under this agency government employee runs a software technology park scheme, which is an export oriented scheme for the development of computer software and the professional services. Thousands of business enterprises are registered under STPI , due to which the export in IT/ITES Industry has increased manifolds.
In general exports refers to sending ‘goods and service’ to clients in foreign country that is outside territorial borders of India for reason of sale. Physical goods are exported by means of a physical port of shipping i.e. a sea port, airport or foreign post office and is monitored by Central Customs department.
When physical goods depart from India, the exporter is required to declare the value of goods exported. In India, this declaration by exporters is done in the GR Form or PP form together with invoice and other supporting documents. Of late, as part of simplification of process, the GR and PP form have been substituted by a form called ‘EDF’ (export declaration form) and SDF has been merged with the shipping bill. Further, the value of the goods exported must be accepted andcertified by the customs office, at the port of shipment. This is referred to as “valuation of export”. One time the valuation of export is finished, the value is accepted both by RBI and its authorized dealer i.e. the exporter’s bank). RBI then monitors, the payment of an equivalent value in exporter’s bank account. ‘Software’ exported on a media i.e. CD or DVD or magnetic on physical form are covered by the above two forms.
In case of any other type of software export, SOFTEX form must be filed by the exporter after the actual export of software has taken place. Hence, SOFTEX form is a post-facto authorization.
The following parties are required to file SOFTEX form.
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