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Foreign Exchange earning from Services: Regulatory Filings?

kaushal (ca) (24 Points)

07 February 2010

I am earning foreign exchange from rendering services online. (less than $25,000) and do not want to avail any exemptions from these earnings. As I understand I am not required to obtain Import Export certificate (IEC ) because I am rendering services. Presently, I am not reporting my foreign earnings to anyone (except Income tax department).

Is there any requirement on my part to register with any organisation or to report my foreign earning to RBI/govt. authority? I am also confused about whether I am required to fill form 'Softex' or not?

Any insight will be highly appreciated. Thanks.

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3 Replies

RAMESH KUMAR VERMA ( CS PURSUING ) (43853 Points)
Replied 09 February 2010

MR. KAUSAHL JI,

I think that you are "SERVICE PROVIDER” however you are elgible for giving the service tax to the government of India,, in this ground and IEC , import export code not comply with you, and as far as I understand that you should be apply for S.T. Registration in the concerned SERVICE TAX Authority.

HOWEVER you company is IN SEZ , S.T.P.I. / 100% EOU/ E.H.TP / B.T.P. , NEED OF SOFTEX IS MUST.

RAMESH KUMAR VERMA

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Yogesh (employee) (34 Points)
Replied 20 January 2011

If IT company register under SEZ unit and more than 2 years they are not submitting SOFTEX form, then is there any penalty for non filling SOFTEX ?

Thanks & Regards,

Yogesh Phanase

RAMESH KUMAR VERMA ( CS PURSUING ) (43853 Points)
Replied 20 January 2011

In cases where an exporter has not been able to realise proceeds of a shipment made within the period prescribed (i.e within six months from the date of export), for reasons beyond his control, but expects to be able to realise proceeds if extension of the period is allowed to him, necessary application (in duplicate) should be made to the concerned Regional Office of Reserve Bank in form ETX through his authorised dealer with appropriate documentary evidence. Extension will not ordinarily be granted unless Reserve Bank is satisfied that the exporter is in no way directly or indirectly responsible for the delay in realisation of proceeds and that by grant of a short extension the exporter will be able to realise proceeds