Importer exporter code for software services company

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

25 March 2013 We have setup a new Software Services Company and opened a current account. Our banker assured us (verbally) that we do not need an IEC code (Importer Exporter Code) to recieve foreign inward payments from our clients in US.
However, from other sources, we are getting an opposite response.
What it the correct procedure? Do we, as a software development Service Provider, need it or not ? Or is there a limit upto which, companies can recieve remittances without an IEC code?
Please advice. Please also let us know if you can recommend any consutant who can get the registration done for us in Kanpur?

Regards.

RAMESH KUMAR VERMA

RAMESH KUMAR VERMA (Expert)
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25 March 2013 as per para 2.8(iii) of HBP vol-1(2009-2014) a person who are import / export for personal use / agriculture purpose is exempt from IEC.

whose person exporter importer wanted to import export for the purpose of trading / manufacturing purpose and export import not for personal use will be liable to duty as per applicable in Import schedule list .

The Import Export Code is a 10 digit special code provided by the Director General of Foreign Trade, Ministry of Commerce, Government of India.

Technically speaking, an IEC is necessary for any person looking at making an import into India or exporting a product or service out of India. So technically speaking, if I create even one software program and sell it to a party based in the United States, it is an export and I need to get an IEC.

more info:

https://www.caclubindia.com/experts/import-from-china-869960.asp#.UVAd4zf7crc

Querist : Anonymous

Querist : Anonymous (Querist)

03 April 2013 Mr. Ramesh,
Thank you for your reply. From where ever its copied or picked , there was supposed to be one more line which you have skipped.

"So technically speaking, if I create even one software program and sell it to a party based in the United States, it is an export and I need to get an IEC.

Practically speaking however, you only need an IEC if you are going to be making sizeable exports and your income from export of services is more than Rs. 9 lakhs. In this case, getting an IEC will make you eligible to get a service tax exemption."

It seems there is a limit or minimum cap below which, it may not be mandatory.
I gather you do not have any idea about what is meant by "Practically Speaking" here, otherwise, you would have pasted the original source and complete detail.

Regards.

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RAMESH KUMAR VERMA

RAMESH KUMAR VERMA (Expert)
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03 April 2013 as per para 2.8(iii) of HBP vol-1(2009-2014) a person who are import / export for personal use / agriculture purpose is exempt from IEC.

whose person exporter importer wanted to import export for the purpose of trading / manufacturing purpose and export import not for personal use will be liable to duty as per applicable in Import schedule list .

Querist : Anonymous

Querist : Anonymous (Querist)

03 April 2013 Mr. Ramesh,
Kindly stop making copy paste replies and marking my query as resolved.
I have a fair understanding of english and I have gone through HBP and FEMA.
It seems you can not understand the query properly.
Please let others answer it if you have nothing to offer other than copy paste.

RAMESH KUMAR VERMA

RAMESH KUMAR VERMA (Expert)
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06 April 2013 IT SEEMS THAT YOU ARE NOT ABLE TO UNDERSTAND FOREIGN TRADE POLICY ..

IT SEEMS THAT YOU ARE NOT INTERESTED TO READ REPLY AS ABOVE SAID SIR PLEASE FILED AN RTI INFORMATION.

EMINENT EXPERT PLEASE ADVISE THE RESPECTED MEMBER....