In India, export regulations require exporters to file documents that declare the value of goods when they leave the country, using the Export Declaration Form (formerly known as GR and PP forms). This process oversees and regulates foreign exchange transactions related to the export of physical goods.
Technology companies have been exporting services outside India. However, the Customs department faced challenges in evaluating software exports transmitted via data communication channels as they lacked a physical product. To address this issue, the Indian Ministry of Electronics and Information Technology (MeitY) introduced the concept of SOFTEX forms in 1991 and established the Software Technology Parks of India (STPI). STPI is the administrative authority for software export valuation and certification of SOFTEX forms
According to RBI regulations, any company engaged in IT or ITeS (Information Technology enabled Services) and exporting software over a digital platform must submit a SOFTEX form. IT encompasses a range of activities including software products and services, such as design, development, implementation, deployment, and maintenance. ITeS covers services supported by Information Technology, including BPO (Business Process Outsourcing), KPO (Knowledge Process Outsourcing), and data processing. Failing to report these exports and obtain SOFTEX certification can lead to penalties or violations.
This requirement also applies to firms that are not registered under the STP (Software Technology Parks) or SEZ (Special Economic Zones) schemes, also referred to as non-STP(NSTP) units.
The SOFTEX compliance have been recently introduced in India and not many companies are well-versed with the requirement and the compliance.
AAPT CORP has been offering comprehensive services and proactive solutions to companies that need to declare exports using the SOFTEX form. We act as the one-stop-shop for all compliance requirements related to STPI regulations for our clients. For recurring compliances, we follow an extensive checklist to ensure thorough review and submission of the applications. We also specialize in matters related to rectifications/cancellations and condonations of past incorrect applications.
Assisting into the submission of the application along with the supporting documents. A nominal fee is payable along with the application. Documents to be uploaded are enlisted below:
MPR tracks the export certification target of the STP/NSTP units on a monthly basis. It can be filed with zero export value unlike the SOFTEX application. Registered entities must report monthly investments, exports and changes in employment count.
