Sez office - urgent

Save Share

This query is : Resolved

dewang (Querist)

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)

10 April 2012 WHAT IS QUERY??????????

REGARDS,

dewang

dewang (Querist)

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

Aashok Kumar Sharma

(Expert)

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!

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now