13 December 2011
One of my friend who is an NRI employed in Dubai wants to setup an office at India for carrying out some software work exclusively for export. For export of service whether we need an IEC No. If so whether any approval of RBI for investment is required. The investment is made out of his NRE a/c. Whether the software consultancy will be treated as a service or sale of goods. Please provide me the maximum input.
13 December 2011
Software Consultancy will be treated as Service and approval of RBI is not required if remittances will be through NRE a/c of the NRI. The IEC Code No. is required for every exporter/importer of goods and services. This is a unique identification number and issued by JDOFT.
13 December 2011
Please Noted Also That as per Para 2.8(III) OF HAND BOOK OF PROCEDURES VOL-1(2009-2014) "PERSON IMPORTING OR EXPORTING GOODS FOR PERSONAL USE NOT CONNECTED WITH TRADE OF MANUFACTURE OR AGRICULTURE .
In case of NRI interest/holding with repatriation benefits in the firm/company, Mandatory RBI Approval.
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