RBI Simplifies Procedure of Softex for Large Exporters – STPI to Certify Excel Sheets
[RBI
Circular No. 80 dated 15th February 2012]
Sub: Export of
Goods and Services-Simplification and Revision of Softex
Procedure
Attention of the Authorised Dealers is invited to Regulation
6 of the Notification No. FEMA 23/2000-RB dated May 3, 2000 viz. Foreign
Exchange Management (Export of Goods and Services) Regulations, 2000, as
amended by the Notification No. FEMA 36/2001-RB dated February 2, 2001, in
terms of which designated officials of the Ministry of Information Technology,
Government of India at the Software Technology Parks of India (STPIs) or at
Free Trade Zones (FTZs) or Export Processing Zones (EPZs) or Special Economic Zones(SEZs), had been authorised to certify exports declared
through SOFTEX Forms.
2. Considering
the spurt in the volume of software exports from India in recent times, the
complexity of work contracts involved, the voluminous nature of contract
agreements and the duration involved in execution of each contract as well as
the time-consuming process involved in the certification of SOFTEX forms, the
matter was revisited and a revised procedure, given herein below, has now been
finalised in consultation with the stakeholders involved.
3. As per the
revised procedure, a software exporter, whose annual turnover is at least Rs. 1000 crore or who files at
least 600 SOFTEX forms annually, will be eligible to submit a statement in
excel format as per Annexure A, giving all particulars alongwith
quadruplicate set of SOFTEX form to the nearest STPI. STPI will then
verify the details and decide on a percentage sample check of the documents in
details. Software companies will submit all the documents on demand to STPI
within 30 days of their advice or any reasonable/extended time at the
discretion of the Director, STPI, at the request from the exporter. STPI will
thus certify the statement and SOFTEX forms in bulk on the “Top Sheet” regarding
the values etc. and will thereafter forward the first copy of the
revised SOFTEX format to the concerned Regional Office of RBI, the duplicate
copy alongwith bulk statement in excel format to
Authorised Dealers for negotiation / collection / settlement, the third copy
to the exporter and the last copy will be retained by STPI for its
own record. Under the revised procedure, the exporters, however, will have to
provide information about all the invoices including the ones lesser than
US$25000, in the bulk statement in excel format. [The revised procedure for
submission of the Softex form and other relevant
documents are detailed in the Annex.]
4. The new
procedure will be effective initially in STPI Bangalore, Hyderabad, Chennai,
Pune and Mumbai with effect from April 01, 2012. Based on the success in these centers, it would be adopted by all the STPIs and SEZ/ EPZ/
100% EOU/ EHTP/ DTA units by June 2012.
5. Authorised
Dealers may bring the contents of this circular to the notice of their
constituents concerned.
6. The
directions contained in this circular have been issued under Section 10(4) and
Section 11(1) of the Foreign Exchange Management Act, 1999 (42 of 1999) and are
without prejudice to permissions / approvals, if any, required under any other
law.
ANNEX
[Annex to
A.P. (DIR Series) Circular No. 80 dated February 15, 2012]
1. Revised Procedure: Reporting of Software
exports to STPI
A. Periodicity
– Monthly
B. Time period
– Not later than 30 days from the close of the month in which
the invoice is raised
C. Applicability
– Software
exporters with annual turnover in excess of Rs. 1,000
crore or submitting at least 600 Softex
forms annually.
D. Softex Number – Softex
number shall be allocated/issued centrally by RBI once a year based on the
requirements of exporter which can be about 200,000 numbers to be used by large
exporters for the year for all locations. If the softex
numbers are exhausted, the exporter can apply again to RBI for allotment of
number. Exporters can use the allocated Softex number
either for each invoice or for a group of invoices with same currency of
a particular customer. Softex number would
be the control number for identifying any of the export transaction.
E. Details of
information – As per the template in Annexure A, which
will broadly cover information as under
i. Name and
Address of the Exporter
ii. Letter of
permission number and date
iii. Name of
authorized data com service provider
iv. Import Export Code number
v. Software
Export Declaration
vi. Details of
Export of Software during the period
a) Period of
submission i.e. Month name
b) SOFTEX Number
c) Name of
Client
d) Address of
Client
e) Country of
Export
f) Invoice
Number
g) Invoice Date
h) Project Code
or Contract or Agreement or PO & Date
i) Type of
Software Exported
j) Invoice
Currency
k) Offshore
Invoice value
vii. Details of
billings on account of Royalty on Software Packages/products exported as per Annexure
B
a) Period of
submission i.e., Month name
b) SOFTEX Number
c) Name of
Client
d) Address of
Client
e) Country of
Export
f) Invoice
Number
g) Invoice Date
h) Unique
internal Project Code or Contract/Agreement/PO Date
i) Invoice
Currency
j) Offshore
Invoice value
k) Details of
Software Package(s)/product(s) exported
l) Royalty
agreement details
1. % age and
amount of royalty
2. Period of
Royalty agreement
3. Mode of
realisation of Royalty value
4. Calculation
of Royalty amount
viii. The
Authorized dealer’s name should be given in Section A of individual bulk
statement itself along with email id (Annexure A
& B). If there are multiple ADs, then exporter may provide full details
- i.e., Details such as bank name, address and Authorized Dealer code plus
a) Details of
Letter of Credit(L/C) facilty
availed by the exporter
b) Details of
Bank Guarantee taken by the exporter
c) Details of
the Bank Accounts into which the transfer/remittance are received
ix. Email id of
the Exporter shall be specified to which the attested Bulk Softex
statement will be sent
F. Soft copy
Submission – Software Exports Declaration in summary
excel sheet with above details.
G. Hard copy
submission – Covering letter along with summary sheet
declarations and Annexure copies in quadruplicate. Copies of Softex forms, Invoices, SoW, MSA
or any other document are not required to be submitted along with summary.
H. Additional
Information – At the request of STPI, software exporter
need to submit additional details about selected sample invoices within 30 days
of the request or any reasonable extended time at the discretion of the Director , STPI at the request from the exporter.
I. Time Period
for additional Information – STPI would do sample audit
periodically but not during the period beyond six months, to make the records
concurrent with the filing of the Softex. This
however, doesn’t stop the regulator from asking old records as per FEMA.
J. STPI
will send the attested Bulk Softex statement in
hardcopy to software exporter and soft copy to RBI, Regional Office, Authorized
Dealer and Exporter with password protection (to be provided by STPI)
K. Authorized
Dealer will upload this information in their systems for further processing
L. Authorized
Dealer will settle the Softex using AD internal
control number based on details provided by Exporter on collections as per
Annexure C
2. Reporting of Software export
Realizations to Authorized Dealer (AD) Software Exporters can have collection account overseas or get
credit directly in the bank accounts maintained in India, where individual
invoices raised on customers are collected. After meeting “onsite” branch
expenses, as permitted by FEMA, net amount will be remitted to India. This
would also include 100% realization of offsite exports.
A. Periodicity
– Quarterly
B. Applicability
– Software exporters with annual turnover
in excess of Rs. 1,000 crore
or submitting in excess of 600 Softex forms annually.
C. Details
of information – As
per Annexure C, which will cover information as under
i. Name
and Address of the Exporter
ii. Import Export Code
number
iii. Details
of invoice wise collections (Attachment A)
a) SOFTEX
Number
b) Name
of Customer
c) Invoice
Number
d) Invoice
Date
e) Invoice
Currency
f) Offshore
Invoice value
g) Offshore
Invoice value realized
h) Date
of Realization of exports proceeds
i) Name of the Bank
j) Country
of the Bank
iv. Details
of Foreign Currency Inward Remittance in India(Attachment
B). Authorized Dealers will give a control number for this Attachment B,
which shall be used by them to settle all the softex
forms in Attachment A
a) Inward
remittance in India from overseas bank accounts
1. Name
and address of the Authorized Dealer at which the amount has been received
2. Inward
remittance details like FIRC number, date, amount and foreign currency
3. Name
and address of the Overseas bank from which remittance
has been effected
b) Direct
Inward remittance in India from customers against exports of software
1. Name
and address of the Authorized Dealer at which the amount has been received
2. Inward
remittance details like FIRC number, date, amount and foreign currency
3. Name and address of the Customer from which remittance has been
received
v. Documentation:
FIRCs to be given to AD for endorsement
along with above details
vi. Software
exporters will furnish the credit notes to AD for invoices which have already
been certified by STPI and settle the respective Softex
forms.
3. Online Submission of Periodic Software
Exports Declaration
STPI is in the process of computerizing the submission
of Softex form. STPI would be required to ensure that
the computerisation of the Softex forms and the
populating of the data must be compatible to 'Softex
Card Design' as detailed in Annexure E and be able to generate a
report in 'ENC file format' as detailed in Annexure D
N.B.
In the event of full computerisation at the STPIs, the exporters will upload
their bulk statement to the STPI system which will be verified and certified by
the STPI and the certified information will flow to RBI, Regional Office,
Exporter as well as AD online. The data will eventually flow to DSIM, RBI for
record with a copy retained at STPI.