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Softex + firc + getting money from us through bank + purpose

Raghu (Propriter) (34 Points)

03 November 2011  

Friends,

There are lots of sites from where we can get work related to website development, graphics designing etc. (Software Related). Like everyone, I too decided to work independetly using this internet medium. I opened current bank account in company name (Properiter).

Now when my US client has send me money into this account, bank is asking me to clarify purpose of the money sent. When i said its software business related, they have now confused me asking that I should be filling Softex form, for that i should be register myself under STPI, they want import-export license number. Now I am confused that, I as a tiny business owner, am I required to undergo all these? I also have confusion on, purpose of FIRC and its Purpose Code.

Can someone throw light and guide me, if any of these is really required.

Regards

 


 5 Replies

CA. Anuj Gupta (Practices in NRI Int.Tax FEMA TP FDI/FIPB & FCRA)   (7009 Points)
Replied 03 November 2011

You can ask Bank to mention "Consultancy fee" in the FIRC.

 

Anuj

+91-9810106211

femaquery @ gmail.com

Raghu (Propriter) (34 Points)
Replied 03 November 2011

Anuj Sir,

I told bank that its "software consulting/programming income", but Bank has asked me to mention "Purpose Code" .  and the list is like below.   What should i mention?

08 Computer & Information Services

P0801 Hardware consultancy

P0802 Software implementation/consultancy (other than those covered in SOFTEX form)

P0803 Data base, data processing charges

P0804 Repair and maintenance of computer and software

P0805 Mews agency services

P0806 Other information services- Subscriptttion to newspapers, periodicals, etc.

Regards

 

 

CA. Anuj Gupta (Practices in NRI Int.Tax FEMA TP FDI/FIPB & FCRA)   (7009 Points)
Replied 03 November 2011

You can use P0802 to P0804 depending on the actual services rendered by you.

 

Anuj

+91-9810106211

femaquery @ gmail.com

Raghu (Propriter) (34 Points)
Replied 04 November 2011

Sir,

What proof or further detials they will ask me to produce if I  specify P0802?.  will they further ask me to provide Import/Export Code ?

What proof or further detials they will ask me to produce if I specify P0803 ?

Regards

vijay (Engineer) (15 Points)
Replied 07 December 2018

For P801-804 is some other Softex equivalent registration required? Or is IEC code sufficient?
Are there different tax implications for different purpose code?


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