SOFTEX Form Filing

There are cases when software exporting companies that operate outside an export oriented scheme (STP, SEZ, EOU etc.) are advised to not file SOFTEX forms. Also, in some cases, companies ceased getting SOFTEX certification done, after moving out of STP/SEZ schemes due to this advice. However all software companies associated with an export oriented scheme are advised to file for SOFTEX forms. The article studies the reason, process and consequences of non-compliance to filing related to SOFTEX Form.

SOFTEX Form

In general exports refers to sending ‘goods and service’ to clients in foreign country that is outside territorial borders of India for reason of sale. Physical goods are exported by means of a physical port of shipping i.e. a sea port, airport or foreign post office and is monitored by Central Customs department. When physical goods depart from India, the exporter is required to declare the value of goods exported. In India, this declaration by exporters is done in the GR Form or PP form together with invoice and other supporting documents. Of late, as part of simplification of process, the GR and PP form have been substituted by a form called ‘EDF’ (export declaration form) and SDF has been merged with the shipping bill. Further, the value of the goods exported must be accepted andcertified by the customs office, at the port of shipment. This is referred to as “valuation of export”. One time the valuation of export is finished, the value is accepted both by RBI and its authorized dealer i.e. the exporter’s bank). RBI then monitors, the payment of an equivalent value in exporter’s bank account. ‘Software’ exported on a media i.e. CD or DVD or magnetic on physical form are covered by the above two forms. In case of any other type of software export, SOFTEX form must be filed by the exporter after the actual export of software has taken place. Hence, SOFTEX form is a post-facto authorization.

Requirement for Filing SOFTEX Form

The following parties are required to file SOFTEX form.

Exporters registered under STP and SEZ must file SOFTEX form to value the software exports done by exporter.
Some exporters of Software i.e. both IT and ITeS companies that are not registered in STP or SEZ or other EOU schemes scheme must also file SOFTEX, according to foreign trade policy. Such exporters are commonly called non-STP units and can file the SOFTEX form with the concerned jurisdictional STPI Director. Exports of services that do not fall under IT and ITeS category are not liable to file the export declarations or the SOFTEX form.

Penalty for Not Filing SOFTEX Form

If SOFTEX or EDF - in case of physical exports form is not filed, and exports proceed is obtained, the remittance received is treated as ‘general services’ or not as an export proceed. In addition, the Bank could also freeze an account, in case SOFTEX forms are not filed on time.

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Frequently Asked Questions

Common questions about SOFTEX Form Filing for Software Export Compliance.

A SOFTEX Form is a post-facto authorization that software exporters must file after the actual export of software has taken place. It is used to declare the value of software exports made by the exporter.

Exporters registered under STP (Software Technology Parks) and SEZ (Special Economic Zones) schemes must file SOFTEX forms to declare the value of their software exports. Additionally, non-STP/SEZ software exporters (IT and ITeS companies) may also be required to file SOFTEX forms as per the Foreign Trade Policy.

If a SOFTEX Form is not filed and export proceeds are obtained, the remittance received is treated as 'general services' and not as an export proceed. Furthermore, the bank could freeze the exporter's account for non-compliance with filing requirements.

For physical exports of software on media like CDs or DVDs, the exporter must use other forms like the GR, PP, or EDF (Export Declaration Form) instead of the SOFTEX Form. The SOFTEX Form is specifically for non-physical software exports.

No, exports of services that do not fall under the IT (Information Technology) and ITeS (Information Technology Enabled Services) categories are not required to file export declarations or SOFTEX forms.

The primary purpose of filing a SOFTEX Form is to declare the value of software exports made by the exporter. This value is accepted by the Reserve Bank of India (RBI) and the exporter's bank, enabling the monitoring of equivalent payment received in the exporter's bank account.

Non-STP/SEZ software exporters (also known as non-STP units) can file their SOFTEX forms with the concerned jurisdictional STPI (Software Technology Parks of India) Director.

SOFTEX Forms are specifically designed for declaring the value of non-physical software exports, while forms like GR, PP, and EDF are used for declaring the value of physical goods exports, including software exported on physical media.

Yes, as per the article, the process for declaring physical exports has been simplified. The GR and PP forms have been replaced by the EDF (Export Declaration Form), and the SDF has been merged with the shipping bill.