Navigating the Softex Form Process for IT/ITES Exports in India

Understanding Softex Forms for IT/ITES Exports

Companies engaged in IT and ITES exports using Data Communication Links must submit the Softex Form for exporting their services. The term ‘Data Communication Links’ is broadly interpreted to mean a virtual circuit that enables data transmission between devices.

Background of Softex Emergence

Exporting involves transferring goods or services to locations outside India. Physical goods and services can easily be monitored at shipping ports overseen by the Central Customs department.

Software can be exported in either physical formats (such as CDs, DVDs, magnetic tapes, etc.) or through virtual means via Data Communication Links. Monitoring physical software exports is straightforward since they are treated as tangible goods.

However, tracking exports made via virtual data communication links posed significant challenges. To address this, in 1991, the Indian Ministry of Communication and Information Technology established the Software Technology Parks of India (STPI). Consequently, the Softex Form was introduced to verify the value of software exports, with oversight shifting from the Central Customs Department to STPI designated authorities.

Obtaining STPI Registration

STPI registration is essential for acquiring a Softex certificate. Members of the STP must register under the ‘STP’ category, while non-STP members will register under the ‘Non-STP’ category.

Steps to Obtain STPI Registration

1. Visit the STPI registration portal.
2. Click on ‘I want to register as New Unit’.
3. Provide the required details:
   • Select ‘Organisation Type’ from the dropdown list.
   • Select an ‘STPI Centre’.
   • Enter Organisation Name and Contact Person details.
4. Complete the Captcha verification.
5. Click 'Register'.

Upon registration, a Login ID and Password will be sent to your registered email.

Post-Registration Steps

1. Visit the STPI login page.
2. Log in using your ‘Username’ and ‘Password’, and complete the Captcha.
3. Create a new password.
4. Choose the appropriate scheme type (STP, EHTP, or Non-STP).
5. Complete the form based on your selected scheme.
6. Submit the application after specifying the ‘Application Fee’ details.

Filing the Softex Form

The procedure for submitting the Softex Form is categorized into three main parts:

1. Generation of Softex Number
2. Online Filing of Softex Form
3. Submission of the Softex Form for Certification

1. Generation of Softex Number

1. Go to the RBI home page.
2. Click on ‘Forms.’
3. Select ‘Foreign Exchange Management Act Forms.’
4. Click on ‘Click Here’ under ‘For Printing EDF/ SOFTEX Form No.’
5. Fill in the necessary details including your Name, IECode, Address, and Type of Export. Then, complete the verification code and submit.

2. Online Filing of Softex Form

After generating the Softex Number, complete the online Softex Form available on the STPI website. Ensure that this form is submitted within 30 days from the invoice date or the date of the last invoice raised in that month.

3. Submission of Softex Form for Certification

• Download the Softex Form application.
• Digitally sign the downloaded form.
• Submit the signed copy to an STPI officer for certification.

Frequently Asked Questions (FAQs)

1. Who needs a Softex Form?

   • Companies exporting through a virtual data communication link must obtain a Softex Form. Software transmitted in physical form is not subject to this requirement.

2. Do small service enterprises need a Softex Form?

   • Yes, all companies, regardless of size, engaging in exporting software via virtual means are required to procure a Softex Form.

3. What is the minimum requirement for the Softex Form?

   • Registration under STPI as either a STPI member or a non-STPI member is essential to fill out the Softex Form.

4. What is the procedure for obtaining a Softex certificate?

   • The process includes:
     • Obtaining STPI registration,
     • Generating a Softex number,
     • Filing the Softex Form online,
     • Submitting a copy of the Softex Form to an STPI officer.

5. What are the registration requirements and costs for non-member small companies?

   • Private limited, public limited companies, partnership firms, or proprietorships developing Export-oriented Computer Software/IT-enabled services can register as a ‘Non-STPI unit’. The registration cost is INR 1,000 plus applicable GST.

By following these guidelines, companies engaged in IT/ITES exports can successfully navigate the Softex certification process, ensuring compliance with legal requirements.