Sez office - urgent

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dewang (Querist)
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10 April 2012 HI,
we are SEZ OFFICE IN GANDHINAGAR & IT IS IT/ITES SERVICES AS PER L O I / L O P.

WE CAN GOT ORDER FROM USA REGARDING SOFTWARE AND HORDWARE SO WE CAN TAKE BOTH UNDER SAME COMPANY - SEZ UNIT AND ISSUE INVOICE FROM THIS SEZ UNIT i.e. INVOICE FOR SOFTWARE AND HARDWARE TO SAME PARTY WHO HAS GIVE US ORDER ( PER AGGREMENT )

RAMESH KUMAR VERMA

RAMESH KUMAR VERMA (Expert)
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10 April 2012 WHAT IS QUERY??????????

REGARDS,

dewang

dewang (Querist)
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10 April 2012 my query is that, we have contract with usa client to supply software and hardware from sez unit [ invoice issue from sez unit ] can we do that thing?

Aashok Kumar Sharma online

Aashok Kumar Sharma online

(Expert)
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25 July 2025 Thank you for clarifying your query. Let's break it down and address it precisely.

---

## ✅ **Your Situation (Summarized):**

* You are an **IT/ITES SEZ unit** located in **Gandhinagar**.
* You have a **Letter of Approval (LoA)** for **IT/ITES services**.
* You have received an **export order from a US client** for:

1. **Software** (developed/exported from SEZ) ✅
2. **Hardware** (physical goods) ❓
* You want to know:

> **Can we supply *both software and hardware* from the same SEZ unit and issue a single invoice from the SEZ?**

---

## 🎯 **Short Answer:**

> **You can export both software and hardware from an SEZ unit, but only if your unit's LoA/LOP includes both activities (IT/ITES + Trading/Manufacturing of Hardware).**

---

## 📌 **Detailed Explanation:**

### ✅ **1. Software Export from SEZ:**

* Since your SEZ unit is approved for **IT/ITES**, exporting software (digitally or via media) is **completely valid**.
* You can raise export invoices from the SEZ unit and claim all applicable SEZ benefits (no GST, duty-free inputs, etc.).

---

### ⚠️ **2. Hardware Supply (Export) from SEZ:**

This depends on **whether "trading/manufacture of hardware" is included in your approved operations** in the SEZ unit’s **LoA/LOP**.

#### 🟡 **If NOT included:**

* You **cannot export hardware** from your SEZ unit under the same registration.
* SEZ units can only carry out **“authorized operations”** approved by the Development Commissioner (DC).
* Hardware supply (physical export) is not considered part of IT/ITES unless specifically allowed.

#### ✅ **If Included in LoA:**

* Then yes, you can export hardware as well from the SEZ unit.
* You can **issue a single invoice** for software + hardware if the contract requires it.
* You will need to:

* Maintain **separate records** for goods and services.
* File appropriate **shipping bills** for hardware.
* Use **SOFTEX forms** for software exports.

---

## 📋 **What You Should Do Now:**

### Step 1: **Check your SEZ LoA/LOP**

* Does it mention **trading/manufacturing/export of hardware** in addition to IT/ITES?
* If not, you'll need to **apply for amendment of LoA** from the Development Commissioner (Gandhinagar SEZ DC).

### Step 2: **Amend LoA if Needed**

* Submit an application to include **hardware trading/export**.
* Explain it’s as part of a **combined contract** from the foreign client.
* After approval, you can officially export both items from the SEZ unit.

---

## 🧾 Documents to Maintain:

* Contract/Agreement with US client.
* LoA/LOP approval copy.
* Single invoice showing software and hardware components clearly.
* **Shipping Bill** for hardware (physical export).
* **SOFTEX Form** for software (if applicable).
* Proper **foreign remittance realization** records.

---

## ✅ Conclusion:

> ✔️ **Yes**, you **can supply both software and hardware** from the SEZ **only if** your **LoA includes both** IT/ITES **and** hardware trading/export.

If your current LoA does **not** cover hardware, you **must get it amended first** before issuing such combined invoices.

---

Let me know if you'd like:

* A sample amendment letter to DC
* Combined invoice format for SEZ exports
* Checklist for LoA amendment

Happy to help!

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