1.To whom does the revised Softex procedure apply?

2.What are the key features of the proposed changes in Softex submission procedure?

3.What is the time line for submission of Softex in Annexure A ?

4.Who will issue the softex form numbers and what is the process of getting the form numbers?

5.What are the documents to be accompanied while filing softex bulk statement?

6.Is it sufficient to file one Annexure A per company with one STPI?

7.Why is the Annexure A and Annexure B seeking email id information of Authorized Dealer and Exporter?

8.Can an exporter use multiple Authorized Dealers for collection of export proceeds?

9.What is the timeframe for realization of export proceeds?

10.What is the effective date for the revised procedure?

11.Where & How should the soft copy of the Annexure A be sent by exporter?

12.What code to be used in Annexure A for country and currency ?

13.What is the time frame for additional documents required by STPI while random selection by STPI ?

14.What is the procedure if any mistake observed in additional documents ?

1. To whom does the revised Softex procedure apply?

Revised softex procedure is applicable to software exporter with following criteria:

  • 1.Annual turnover is Rs 1000 crore or and more in the previous financial year.

  • or

  • 2.They have submitted 600 or more softex forms in previous financial year.

 

2.What are the key features of the proposed changes in Softex submission procedure?

  • Submission of information as per Annexure A for software exports and Annexure B for Royalty exports.

  • Four copies (Original/duplicate/Triplicate/quadruplicate) of Annexure A needs to be submitted for attestation in soft copy as well as hard copy.

  • On receipt of information in Annexure A, STPI centre may seek any supporting documentation like Invoice, MSA, SOW etc from Exporters for specific invoices on sample basis.

  • The software exports declaration is submitted to STPI in Quadruplicate. Triplicate copy is retained by STPI. Original copy is sent to RBI by STPI. Duplicate copy is given to Authorised Dealer Bank by STPI and the Quadruplicate copy is retained by exporter. In this case one quadruplicate copy retained by exporter.

  • The soft copy will be in excel and to be password protected.

 

3.What is the time line for submission of Softex in Annexure A ?

It shall be filed not later than 30 days from the close of the month in which invoices were raised.

 

4.Who will issue the softex form numbers and what is the process of getting the form numbers?

    Softex numbers will be issued by the Reserve Bank of India. The exporters should apply to the Reserve Bank of India to issue the numbers for their yearly requirements (Need to give the address). Exporters are encouraged to use one softex number for each invoice.

5.What are the documents to be accompanied while filing softex bulk statement?

    Only Annexure A and B are required to be filed. No further documents need to be attached. The STPI centre will call for documents on samples basis for specific invoices, which the exporter would need to submit within 15 days of the information asked.
     

 

6.Is it sufficient to file one Annexure A per company with one STPI?

    NO, Annexure A, is required to be filed per LOA/LOP and per Authorized Dealer. Say, for example, if a company has 5 licenses in Pune and one Authorized Dealer, it will file 5 Annexure A clearly identifying the invoice wise break up and other details.

    Further, if the same company has one LoA/LoP and two Authorized Dealers, it has to file 2 copies of Annexure A clearly segregating Invoice Authorized Dealer wise data.

 

7.Why is the Annexure A and Annexure B seeking email id information of Authorized Dealer and Exporter?

    In the new softex submission process, STPI centre will be sending the attested soft copy by email to both Authorized Dealers as well as Exporter, hence it is important to give the information on email id. Exporters and Authorized Dealers are encouraged to create generic email id which is person independent.

 

8.Can an exporter use multiple Authorized Dealers for collection of export proceeds?

    Yes, an exporter can collect export proceeds with more than one Authorized Dealers.

 

9.What is the timeframe for realization of export proceeds?

    There is no change here. It continues to be governed by MASTER CIRCULAR NO. 10/2011-12, DATED 1-7-2011.

 

10.What is the effective date for the revised procedure?

    It is effective April 2012 in STPs Bangalore, Hyderabad, Chennai, Pune, Mumbai and for other STPs and SEZs, it will be effective based on successful implementation of these five centres.

 

11.Where & How should the soft copy of the Annexure A be sent by exporter?

    Soft copy should be sent by CD or email ID of designated officer of STPI by digital signature under password protect file.

 

12.What code to be used in Annexure A for country and currency?

    Numeric code to be used for country and currency code instead of alphabetic code.

 

13.What is the time frame for additional documents required by STPI while random selection by STPI ?

    Unit have to submit the require information within 15 days by soft and hard copy as required by STPI.

14.What is the procedure if any mistake observed in additional documents ?

    STPI may ask entire documents if any discrepancy observed in documents at the time random selection in both soft and hard copy.

FREQUENTLY ASKED QUESTIONS ABOUT STPI POLICY & PROCEDURES

This collection of Frequently Asked Questions (FAQ) provides brief answers to many common questions about STPI Guwahati  policy & procedures. It also provides links to more detailed information available from this web site. Please check here for answers before posting a question to STPI Personnel.

G1. What is STP and what is the advantage by becoming a STP unit?

G2. Who can become a STP unit and how?

G3. Should I need to submit any project proposal to STPI?

G4. What kind of investments is allowed?

G5. What is the minimum time frame it takes to become a STP?

G6. What is bonded warehouse?

G7. Can I operate from different location?

G8. Being a STP unit can I do domestic projects?

G9. What is Capital Goods (CG)?

G10. What is process followed after I become a STP unit?

G11. Can I expand my operation whenever the necessary arises?

G12. What is IE Code?

G13. What is DTA?

I1. What is import and how can I do the same under STP? >

G1. What is STP and what is the advantage by becoming a STP unit?

The Software Technology Park (STP) scheme is a 100% export oriented scheme for the development and export of computer software using data communication links or in the form of physical media including the export of professional services.

The major attraction of this scheme is single point contact service to the STP units.

STP units are exempted from payment of corporate income tax for a block of 10 years (Applicable only for the units who are registering on or before 31st March 2000)

All the imports of Hardware & Software in the STP units are completely duty free. Import of second hand capital goods is also permitted.

 

G2. Who can become a STP and how?

An Indian company

A Subsidiary of a Foreign Company

A branch office of Foreign Company

In order to become certified member unit under STP scheme, approval from the competent authority is required. The following steps are involved for obtaining approval:

An application in the prescribed format for registering and establishing a STP unit is to be submitted to Software Technology Parks of India.

The application should be along with the details of the Software Project in terms of strengths, area of expertise, marketing arrangement, business plans, means of finance.

 

G3. Should I need to submit any project proposal to STPI?

Yes, along with the STP application a detailed project proposal/report covering the details on area of expertise core competency, marketing arrangement, business plans means of finance needs to be submitted.

 

G4. What kind of investments is allowed?

    100% Foreign Direct Investment, NRI-Repatriable, NRI-Non Repatriable, Resident Holding and combination thereof is allowed

G5. What is the minimum time frame it takes to become a STP?

    Depending on the pattern of the investment the following time frame is involved
     

    Type of investment

    Authority for Approval

    Time 

    100% Resident Holding

    Director, STPI

    One Week

    100% Foreign Direct Investment

    FIPB

    4 to 6 Weeks

 

G6. What is bonded warehouse?

    Private Bonded Warehouse is a warehouse declared by Customs Authorities for carry on Export Processing under STP Scheme.

 

G7. Can I operate from different location?

    Yes operation under STP Scheme can be carried from different location.

 

G8. Being a STP unit can I do domestic projects?

    Yes, subject to meeting the Minimum Export Performance STP unit can do business in the DTA.

 

G9. What is Capital Goods (CG)?

    Capital Goods is the Hardware and infrastructure the unit is envisaging to import to set up the STP for a value

 

G10. What is process followed after I become a STP unit?

    Subsequent to the approval granted by STPI, the approved unit will be signing a legal agreement, with a list of capital goods and Indigenous purchases for attestation to obtain Private Bonded Warehouse License from Customs Department.

 

G11. Can I expand my operation whenever the necessary arises?

    A unit operating under STP scheme can always expand its operations to new location.

 

G12. What is IE Code?

    Importer Exporter code is a unique code number issued/required to every Importer-Exporter.  An IE code be obtained by the companies operating under STPI by filling necessary application.

 

G13. What is DTA?

    DTA a.k.a. Domestic Tariff Area.  The units operating under STP Scheme can access Domestic Tariff Area (DTA) up to the level of 50% of the worth of software exported in value terms.

I 1. What is import and how can I do the same under STP?

    A unit operating under STP Scheme can import capital goods (i.e., Computer Hardware & Software and basic infrastructure support) without paying any Customs Duty, as may be levied to the importer in normal cases.

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