Guidelines to Filling up the Softex Form

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

4. 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. 5. 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 6. 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. 7. 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.

For any doubts please email us at : Mumbai : [e-mail] Pune : [e-mail]

Guidelines for filling the SOFTEX Form

1) Definitions of term used in guidelines:-

a) ‘RBI No’ means RBI Softex Form which is put on the Certified Softex Form given by RBI. These number are valid only for particular Calendar Year.

b) ‘Invoice’ means Export Invoice raised against Export Service Provided to Client.

c) ‘Statement of Invoice (SOI)’ means Summary statement of Invoices enclosed with the SOFTEX Form for one client and one country.

d) ‘IEC No.’ means Importer Exported Code provided by DGFT.

e) ‘Bulk Statement’ means summary statement of Softex Form submitted in bulk (say fifty or more).

f) ‘LOP No.’ means Letter of Permission No. given by STPI to STP unit /Exporter.

g) ‘STP Unit’ means Exporter registered under STP scheme with STPI.

2) One Softex Form need to be submitted against one LOP.

3) On the top of the Softex Form calendar year of the export Invoice should be specified.

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4) RBI Softex Form No. should not be filled and should remain if they are not provided by the STPI/SEZ/RBI.

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5) At Softex Form Point no 1 The Name and Address of Organisation where the export activity has been done should be specified.

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6) At Softex Form Point no 2 The Name and Address of the STPI jurisdiction where Softex Form is submitted for the certification.

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7) At Softex Form Point no 3, 10 digit IEC No should be clearly specified. For details refer Notification No. FEMA 23/2000-RB dated 3rd May 2000 .

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8) At SOFTEX Form Point no 4 against Category of Exporter correct option should be ticked out (Fig 8).

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9) Client/Buyer Name , Address and Country provided in SOFTEX Form point no 5 should be specified and same to be appeared in Invoice / SOI / Agreement / Gist of Contract along with Exporter relation with the Client. Kindly refer Fig 1 Sample case of Invoice Client Address is specified in SOFTEX Form Sample

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Kindly note that SOFTEX form having different buyer’s name or addresses will not be permitted. However, multiple invoices with same buyer’s name and address may be clubbed in single SOFTEX form.

10) Invoice details at SF point no 06 and SOI (Statement of Invoice) details should be specified and match with the Actual invoice no / date. If one invoice is enclosed with SOFTEX Form then it should be specify the actual No and date of the invoice For more than one invoices are enclosed then attach SOI(Statement of Invoice) and mentioned at SF point no 6 “Enclosed Statement of Invoice for the period and .”

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11) At SOFTEX Form point no 7 correct option should be ticked out.

a) Point no 7(a) is for related agreement copy is submitted to the STPI or not and

b) 7(b) is regarding Payment realization mode on Royalty basis or not.

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12) At SOFTEX Form point no 8 tick out or specify the Datacom Service Provider Name and Address which service is utilized for export activity.

13) At SOFTEX Form point no 9 tick out or specify only one Type of Service provided to the Client specified at SF point no 5.

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14) At SOFTEX Form point no 10 declare the total Export Value of Amount should be same as reflected in enclosed invoice/Statement of Invoices for offshore activity only.

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15) At SOFTEX Form point no 11 details regarding Authorized dealer details (Name, Address and 14 digit code) should be mentioned in front of according to the realization mode. Authorized dealer should be India base.

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16) At SOFTEX Form Section B is related to the Royalty payment details if SF point no 7(b) is marked yes then this section should be filed along with Royalty Agreement otherwise Specify N.A (Not Applicable) as per your subject application.

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17) At Section C date of realization should be within one year from the date of export.

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18) At Section C Exporter Sign along with their Name and Designation of the Signatory Authority, Round Stamp of Exporter and name of place & date when exporter has signed the SOFTEX Form should be specified. (refer Fig 2 and Fig 18)

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19) Enclosure with the Softex Form.

a) Statement of Invoice (SOI). It’s an summary statement of the Invoice enclosed with the SOFTEX Form.( refer Fig 19 for the sample of the SOI).

b) Contract Copy / Gist of Contract if not submitted to the STPI.

c) Royalty Agreement if Applicable.

Please note:

1. SOFTEX Form are sensitive document and utmost care should be taken while filling up and should be submitted with requisite enclosure. Every field of the SOFTEX Form is mandatory, if any field is not applicable then mention N.A in that field.

2. Comments like ‘As per attachment’ or ‘As per Annexure’ on SOFTEX forms must be avoided. 3. Import-Export certificate, if export made for the first time.

4. Overwriting/ photocopy of signature/ ambiguous terms on invoice should be avoided.

5. Do not file SOFTEX for negative invoice value or “0” zero export