What is Softex Form?  Importance in today’s scenario?

Exporters export the goods and services to the clients outside the country for sales purpose. Physical goods are exported through seaport, airport or foreign post office and it is monitored by the Central Customs Department.

The exporter has to submit the papers for the value of goods exported when the goods depart from India. This declaration is done in the GR Form or PP Form along with the invoice and other supporting documents in India.

Recently Export Declaration Form (EDF) substituted the GR and PP forms submission and the shipping bill has been merged with SDF. Additionally, the value of goods exported must be accepted and certified by the customs at the shipment port which is referred to the Valuation of Export.

Once the valuation of export is completed, the value is acknowledged by both RBI and its authorized dealer. The payment in exporter’s bank account is then monitored by RBI. Software exports like DVD, CD or magnetic on the physical form are covered by the above two forms.

RBI requires every software exporter to submit SOFTEX along with STPI. Within 30 days from the date of export invoice issuance, the SOFTEX form has to be submitted. It is vital to comply with regulations of the Export Data Processing and Monitoring System (EDPMS) Issuance of Electronic Bank Realization Certificate (eBRC) issued by RBI. The certified copy of SOFTEX should be submitted with an authorized dealer bank in order to enable them to issue the eBRC.

What will happen if SOFTEX is not filed?

Either SOFTEX or EDF (in case of physical export) is not filed, and the exports proceed is realized, the remittance received is either treated as general services or illegal. There is no declaration form for general services such as technical service and management consulting.

Who has to fill SOFTEX form?

1. Both IT and ITES companies who have not registered in STP/SEZ or other EOU scheme must file SOFTEX based on Foreign Trade Policy. Such exporters are called Non-STP units and they can file the form with the concerned jurisdictional STPI Director. Exports that do not fall under IT & ITES are not liable to file the SOFTEX or export declaration.
2. Exporters who registered under SEZ and STP should file SOFTEX to value the software exports done by the exporter.