Sez office - urgent
This query is : Resolved
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 )
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 )
10 April 2012
WHAT IS QUERY??????????
REGARDS,
REGARDS,
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?
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!
---
## ✅ **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!
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- TAX AUDIt us 44AB
- Where to Find Inspiration for Business Management Dissertation Topics?
- ALIMONY AND MAINTENANCE CHARGES
- Document to add trade name
- GST Partners addition
- Non-disclosure of Foreign Shares & Dividend in Past ITRs – How to Rectify & Report Now?
- ICWAI-Final best coaching center for online by English
- "Please ensure that the Total of the Deductions u/s 54F match the same in Table D in Sch CG"
- Refund_ Insufficient in credit ledger
- EPF Withdrawal Where to show in ITR2
Trending Online Classes
-
Input Tax Credit, GST refunds and Recovery of refunds- Roadblocks and way outs
CA Nipun Arora03 September 2025 -
GST LIVE Certification Course - 43rd Weekdays Batch(With Govt Certificate)
Industry Expert15 September 2025
CAclubindia
