Export of software services with out IEC and implication

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Ravi Chandra Prakash (Querist)

11 March 2009 X a private limited compnay engaged in the provision of software services( Not registered as an STPI Unit) to the compnaies with in the group and the softwrae services are exported with out obtaining IEC.
1. Is it required to take IEC, as the services are provided to the group compnaies only
2. If IEC is not taken what are all the implications
3. What are the obligations to be fulfilled if IEC is taken and software services are exported.
4. What obligations to be fulfilled for the exports made before obtaining IEC.

Ravi Chandra Prakash

Ravi Chandra Prakash (Querist)

18 March 2009 X a private limited compnay engaged in the provision of software services( Not registered as an STPI Unit) to the compnaies with in the group and the softwrae services are exported with out obtaining IEC.
1. Is it required to take IEC, as the services are provided to the group compnaies only
2. If IEC is not taken what are all the implications
3. What are the obligations to be fulfilled if IEC is taken and software services are exported.
4. What obligations to be fulfilled for the exports made before obtaining IEC.

Rajesh Kumar

Rajesh Kumar (Expert)

19 March 2009 When the services are exported using internet, no IEC is required. In fact IEC is required when you are exporting goods through custom clearance.
If you take IEC, there is no implication; it is your wish, take it if you like, dont take it if you dont like.
There is no obligation for IEC. Your obligation depends upon your letter of approval at the time of establishing STPI unit- you should be a net foreign exchange earner.

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