ie code required for home based bpo work through mail?
This query is : Resolved
21 June 2013
I am planning to start ITES (Information Technology Enabled Services) work from home. I am an individual and not a company. Two other people will help me like a team who will be paid by me. This work involves doing medical transcription work. I will get assignments from US and New Zealand via Email and I will send the finished work through Email.
The employer will send us service charges based on the volume of work I do on a monthly basis. This project can last from 3 to 5 years, and we will get paid monthly like salary in US Dollar from a foreign bank to my indian bank via wire transfer (approximately 1000 to 1500 USD per month).
MY DOUBT IS:
1. Whether this is an export? (since we do not send any goods and we render services only online)
2. Whether we need an Import/Export code (IE Code) for this type of transaction. Private banks are not asking for IE code but when I approached Bank of Baroda, they asked it.
3. Whether FIRC (Foreign invwared remittance Certificate) is required after they pay me.
4. Whether this needs current account or savings bank account?
From going through various QnA on this forum, some are saying IE code is needed and some others saying, its not needed.
For example, pls see the following links.
"https://www.caclubindia.com/experts/iec-code-for-export-of-services-440420.asp
https://www.caclubindia.com/experts/import-export-code-726955.asp
http://yourstory.in/2012/01/import-export-code-for-service-providers/ require ie code for exporting a product service outside of india."
Okay in case of benefit of doubt, in case I apply for IE code now, nothing is wrong right. In case I apply for IEC, I don't have company, so can I apply in my individual name?
The employer will send us service charges based on the volume of work I do on a monthly basis. This project can last from 3 to 5 years, and we will get paid monthly like salary in US Dollar from a foreign bank to my indian bank via wire transfer (approximately 1000 to 1500 USD per month).
MY DOUBT IS:
1. Whether this is an export? (since we do not send any goods and we render services only online)
2. Whether we need an Import/Export code (IE Code) for this type of transaction. Private banks are not asking for IE code but when I approached Bank of Baroda, they asked it.
3. Whether FIRC (Foreign invwared remittance Certificate) is required after they pay me.
4. Whether this needs current account or savings bank account?
From going through various QnA on this forum, some are saying IE code is needed and some others saying, its not needed.
For example, pls see the following links.
"https://www.caclubindia.com/experts/iec-code-for-export-of-services-440420.asp
https://www.caclubindia.com/experts/import-export-code-726955.asp
http://yourstory.in/2012/01/import-export-code-for-service-providers/ require ie code for exporting a product service outside of india."
Okay in case of benefit of doubt, in case I apply for IE code now, nothing is wrong right. In case I apply for IEC, I don't have company, so can I apply in my individual name?
22 June 2013
IEC Code is unique 10 digit code issued by DGFT – Director General of Foreign Trade , Ministry of Commerce, Government of India to Indian Companies.
you are providing service in this case Apply for IEC issuance for open an proprietorship firm, Current A/C ,this account later converted in EEFC account.
after taking IEC code you must take Registration from sepc for taking the DGFT incentive 10% ON FIRC RECEIVED IN FINANCIAL YEAR .
which Services is available in following link:
http://www.eximguru.com/notifications/appendix-41-list-of-services-22773.aspx
Noted:
Free foreign exchange earned through International Credit Cards and through any instrument as permitted by RBI for rendering of services shall also be taken into account for computation of Duty Credit Scrip.
transferability
***************
(a) Duty Credit Scrip may be used for import of any capital goods including spares, office equipment and professional equipment, office furniture and consumables; that are otherwise freely importable and / or restricted under ITC (HS). Imports shall relate to any service sector business of applicant.
(b) Utilization of Duty Credit Scrip shall be permitted for payment of duty in case of import of only those vehicles, which are in the nature of professional equipment to the service provider.
(c) Duty Credit Scrip in case of hotels, clubs having residential facility of minimum 30 rooms, golf resorts and stand-alone restaurants having catering facilities, may also be used for import of consumables including food items and alcoholic beverages.
Entitlement /goods (imported / procured) shall be non transferable (except within group company and managed hotels) and be subject to Actual User condition.
you are providing service in this case Apply for IEC issuance for open an proprietorship firm, Current A/C ,this account later converted in EEFC account.
after taking IEC code you must take Registration from sepc for taking the DGFT incentive 10% ON FIRC RECEIVED IN FINANCIAL YEAR .
which Services is available in following link:
http://www.eximguru.com/notifications/appendix-41-list-of-services-22773.aspx
Noted:
Free foreign exchange earned through International Credit Cards and through any instrument as permitted by RBI for rendering of services shall also be taken into account for computation of Duty Credit Scrip.
transferability
***************
(a) Duty Credit Scrip may be used for import of any capital goods including spares, office equipment and professional equipment, office furniture and consumables; that are otherwise freely importable and / or restricted under ITC (HS). Imports shall relate to any service sector business of applicant.
(b) Utilization of Duty Credit Scrip shall be permitted for payment of duty in case of import of only those vehicles, which are in the nature of professional equipment to the service provider.
(c) Duty Credit Scrip in case of hotels, clubs having residential facility of minimum 30 rooms, golf resorts and stand-alone restaurants having catering facilities, may also be used for import of consumables including food items and alcoholic beverages.
Entitlement /goods (imported / procured) shall be non transferable (except within group company and managed hotels) and be subject to Actual User condition.
24 June 2013
Thank you expert, Ramesh Kumarji for your timely replies.
This will help me to carry out the transactions in a streamlined way. I have planned for opening sole proprietorship and also for the IE code.
One more question:
1. I and my friend were doing the same type of business with a different client for 2-3 years without any IE code or current account but we had a savings bank in individual name in a private bank where we would get wire transfer money, but we would get FIRC after each and every transaction. We thought doing online job is not export and many are doing like this through paypal or some other.
Since we had done this for 3 years without IE code, will there be any issues pressed on us from DGFT or bank?
2. Don't know what is duty credit scrip. Will it be imposed on me too?
This will help me to carry out the transactions in a streamlined way. I have planned for opening sole proprietorship and also for the IE code.
One more question:
1. I and my friend were doing the same type of business with a different client for 2-3 years without any IE code or current account but we had a savings bank in individual name in a private bank where we would get wire transfer money, but we would get FIRC after each and every transaction. We thought doing online job is not export and many are doing like this through paypal or some other.
Since we had done this for 3 years without IE code, will there be any issues pressed on us from DGFT or bank?
2. Don't know what is duty credit scrip. Will it be imposed on me too?
24 June 2013
REFER TO PARA 2.8 (III)HAND BOOK OF PROCEDURE VOL-1(2009-2014)
IMPORTER / EXPORTER ARE EXEMPT FROM IER CODE WHO ARE IMPORTING / EXPORTING GOODS PERSONAL USE NOT CONNECTED WITH TRADE OR MANUFACTURE OR AGRICULTURE .
REGARDS,
IMPORTER / EXPORTER ARE EXEMPT FROM IER CODE WHO ARE IMPORTING / EXPORTING GOODS PERSONAL USE NOT CONNECTED WITH TRADE OR MANUFACTURE OR AGRICULTURE .
REGARDS,
24 June 2013
could you please let me know in which book or website this para is? so in my case...am I exempt from IE code?
24 June 2013
Also since it involves me only, is it an export for personal use?
24 June 2013
REFER TO PARA 2.8 (III)HAND BOOK OF PROCEDURE VOL-1(2009-2014)
IMPORTER / EXPORTER ARE EXEMPT FROM IER CODE WHO ARE IMPORTING / EXPORTING GOODS PERSONAL USE NOT CONNECTED WITH TRADE OR MANUFACTURE OR AGRICULTURE .
REGARDS,
IMPORTER / EXPORTER ARE EXEMPT FROM IER CODE WHO ARE IMPORTING / EXPORTING GOODS PERSONAL USE NOT CONNECTED WITH TRADE OR MANUFACTURE OR AGRICULTURE .
REGARDS,
24 June 2013
so i am not connected with trade or manufacture or agriculture; only for personal use, i am exporting the medical transcription services, so I dont need an IE code.
This is what I am able to understand. Am I correct in the understanding sir, If not please correct and explain me in detail
This is what I am able to understand. Am I correct in the understanding sir, If not please correct and explain me in detail
24 June 2013
You are Not admissible for issuance IEC code, as per para 2.8(b)HBP for these importer exporter FOLLOWING IEC CODE SHALL BE USED :
0100000053
0100000053
24 June 2013
MY SERVICES ARE USED BY A HOSPITAL ABROAD WHERE-IN MANY PATIENTS COME. MY TRANSCRIPTS ARE USED BY THE PATIENTS THERE.
IN THIS CASE, DOES THE DEFINITION, "EXPORT FOR PERSONAL USE" HOLD RIGHT?
FURTHER, THE CLAUSE SAYS, IMPORTER OR EXPORTER OF "GOODS" FOR PERSONAL USE; SINCE IT IS A "SERVICE", DOES THIS CLAUSE APPLY TO MY LINE OF JOB"
AGAIN AND AGAIN, I HAVE TO ASK THESE, UNTIL I GET CLARITY. SORRY, AND THANK YOU FOR YOUR PATIENTCE
IN THIS CASE, DOES THE DEFINITION, "EXPORT FOR PERSONAL USE" HOLD RIGHT?
FURTHER, THE CLAUSE SAYS, IMPORTER OR EXPORTER OF "GOODS" FOR PERSONAL USE; SINCE IT IS A "SERVICE", DOES THIS CLAUSE APPLY TO MY LINE OF JOB"
AGAIN AND AGAIN, I HAVE TO ASK THESE, UNTIL I GET CLARITY. SORRY, AND THANK YOU FOR YOUR PATIENTCE
25 June 2013
in view of above you are service provider and require IEC CODE alonwith RCMC OF SERVICE EXPORT PROMOTION COUNCIL FOR TAKEN INCENTIVE of dgft,
26 June 2013
Thanks for clarifying.
The service is received by customer abroad, so it comes under export of services.
2. Now as I am service provider, am I liable to register for service tax? The income from this service never crossed 5 TO 6 lakhs in previous years. In subsequent years also, the slab will remain same.
3. To apply for SEPC for taking incentive of DGFT, will they ask for service tax number or service tax payments
The service is received by customer abroad, so it comes under export of services.
2. Now as I am service provider, am I liable to register for service tax? The income from this service never crossed 5 TO 6 lakhs in previous years. In subsequent years also, the slab will remain same.
3. To apply for SEPC for taking incentive of DGFT, will they ask for service tax number or service tax payments
26 June 2013
Thanks for clarifying.
The service is received by customer abroad, so it comes under export of services.
2. Now as I am service provider, am I liable to register for service tax? The income from this service never crossed 5 TO 6 lakhs in previous years. In subsequent years also, the slab will remain same.
3. To apply for SEPC for taking incentive of DGFT, will they ask for service tax number or service tax payments
The service is received by customer abroad, so it comes under export of services.
2. Now as I am service provider, am I liable to register for service tax? The income from this service never crossed 5 TO 6 lakhs in previous years. In subsequent years also, the slab will remain same.
3. To apply for SEPC for taking incentive of DGFT, will they ask for service tax number or service tax payments
26 June 2013
सारी बाते भूलकर नोट करे आप सर्विस प्रोवाइडर है अगर आप डी जी एफ टी की विभिन्न योजनाओ का लाभ उठाना चाहते है तो सर्विस एक्सपोर्ट कौंसिल में अपना रजिस्ट्रेशन कराए अगर अब आपकी सारी क्वेरी खत्म हो गई हो तो ................
धन्यवाद ,
रमेश वर्मा
धन्यवाद ,
रमेश वर्मा
26 June 2013
Ho, I could not understand these marathi letters. Kindly translate in english.
27 June 2013
YOU ARE SERVICE PROVIDER, IF YOU INTERESTED FOR TAKING VARIOUS DGFT INCENTIVE THEN PLEASE ENROLL YOUR SELF IN SERVICE EXPORT PROMOTION COUNCIL IF YOUR ALL THE QUERIES DISPOSE OFF SIR THE ABOVE SAID REPLY IS IN HINDI LANGUAGE FOR UR KNOWLEDGE I WOULD LIKE TO TELL YOU..
REGARDS,
REGARDS,
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