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India BPO Promotion Scheme

Application for DTA sales

Procedure for Domestic Tariff Area Entitlement Permission

The units operating under STP Scheme can access Domestic Tariff Area (DTA) up to the level of 50% of the worth of software exported in value terms. The units has to apply to The Director STPI for permission for DTA Sales (format for application for DTA sales is at Annexure - XIX )

Check list for DTA Sale Entitlement Permission

1) A request letter with Annexure XIX .

2) List of Imported Capital Goods Statement self attested as per Annexure XXI

3) A detailed statement (certified by Chartered Accountant) showing year wise exports in the following format

SOFTEX form no.

Invoice no. and date

Amount in (currency)

Amount realised in foriegn currency

Amount realised in Indian Rs.

FIRC no.








4) A Chartered Accountant certificate for Wage bill on yearly basis & also Foreign Exchange outgo other than import of capital goods.

Procedure for obtaining C.T.3 Exemption

The approved STP units have been extended the facility of bringing into their units indigenously available capital goods , components other specified goods without payment of Central Excise Duty other wise leviable.

Check List Obtaining C.T.3 Exemption

A request letter giving details of the items,supplier name and factory address from which supply is effected, invoice no. and dt, & value. The original invoice/proforma invoice is to be submitted to STPI along with request letter. Refer Annexure XXVII for CT3 Format.

A Bond register for Excise Exempted goods is to be maintained as per format at Annexure XXVIII .

Monthly Progress Reports & Quarterly Progress Reports

All units are required to submit Monthly Progress Reports & Quarterly Progress Reports 7th on completion of previous month & 10th on completion of previous quarter respectively. It is a mandatory requirement. Units, which are irregular in submitting MPRs & QPRs, can be denied services of STPI. Formats for the same are at Annexure XXIX & XXX

Procedure for Claiming Special Import License

Special Import License are provided by Director General of Foreign Trade (DGFT). SIL entitlement of each of the exporter depends upon their exports and as per rates specified in the EXIM Policy. SIL Can either be used by the exporter to import certain items (Specially classified or SIL can be sold in the open market against receipt of cash premium. The shopping list of imports for which SIL can be used, is ever expanding. In current EXIM Policy, this list is contained in "ITC (HS) Classification of Export & Import items". However, it should be borne in mind that all imports under SIL are subject to payment of customs duty.

As per the current EXIM Policy Software Exporter can claim SIL as percentage their NFE earnings of exports. In addition they can also get additional percentage of SIL in case the Exporter is an ISO 9000 certified company.

In order to claim SIL exporters are required fill in form given at Annexure XXII & Annexure XXIIA (Appendix No 20C & Appendix 1 A of EXIM Policy 1997-2002). The application is to be sent licensing authority with the following documents:

I) Physical Exports


a) Export promotion copy of shipping bill attested by Customs
b) Bank certificate of exports

II) Export through Satellite/Data-comm. Channel


a) Copy of SOFTEX


b) Bank Certificate indicating SOFTEX No.


c) Certificate of CA showing NFE

III) Onsite-Consultancy


a) FIRC Copy in lieu of Bank Certificate


b) Certificate from CA Showing NFE which is exclusive expenses incurred abroad


c) Necessary permission of RBI

In addition to the above all exporters will also need to furnish


a) Bank receipt/Demand Draft towards payment application fee


b) Self attested valid copy of RCMC

Procedure for Enhancement of Capital Goods Limit STP unit on exhaustion of value of imported value of Capital goods should apply to STPI for the enhancement of the same. The jurisdictional Director of STPI will allow enhancement in the total value of Imported Capital Goods to extent of 50% of value approved originally (whether under automatics or by IMSC) subject to maximum of Rs. 40 Crores. One or more request can entertained in this regard.

Check list for enhancement of value of Capital Goods


A request letter with Performance Report & Projected performance as per Annexure at XXIII & XIIIA .


A list of capital goods imported as per Annexure XXI


A certificate from Chartered Accountant for



Wage bill


Foreign Exchange Inflow


FE Outgo (i.e., FE expenses incurred other than capital goods imports)


A detailed statement (certified by Chartered Accountant) showing year wise exports in the following format

SOFTEX form no.

Invoice no. and date

Amount in (currency)

Amount realised in foriegn currency

Amount realised in Indian Rs.

FIRC no.









Copy of Private Bonded Warehouse License

Subsequently on obtaining the approval for enhancement in the value of Capital Goods a list of capital goods that are intended to be imported for new value of Capital Goods to STPI for attestation.

Procedure for SOFTWARE Export

The valuation of Software Export declared on SOFTEX Form & Physical Export will be done by the designated official of DoE at the Software Technology Parks of India (STPI). Time limit for realization of Export Value & Invoicing

In respect of long duration contracts involving series of transmissions the exporter should bill their overseas clients periodically i.e., at least once in month or on reach the milestone as provided in the contract entered into with the overseas client and last invoice/bill should be raised not later than 15 days from the date of completion of the contract.

In respect of contract involving only ’One shot operation’ the invoice/bill should be raised within 15 days from the date of transmission.

The exporter should submit SOFTEX form to the concerned official of the Govt. of India at STPI for valuation/certification not later than 30 days from the date of invoice/the date of last invoice in a month as indicated above.

The full value of the software exported as declared on the SOFTEX form or as certified by the officials concerned of Government of India, whichever higher should be realised on due date of payment or within 180 days from the date of invoice which ever is earlier.

Procedures for:


Off-Shore Services


Disposal of SOFTEX Form


Check List for Export Declaration


Checklist for the Invoice enclosed with


Softex forms


Exports through Physical Media


Check list for Export Declaration (Physical)

Off-Shore Services

Export of computer software in non-physical i.e., Export through Datacomm. /Satellite links form should be declared on SOFTEX form. Each set of SOFTEX forms comprises three copies marked, Original, Duplicate and Triplicate, which carry a identical pre-printed number. All the three forms in each set should be completed and the entire set submitted for the purpose of certification together with relevant documents. Each exporter will have to designate a single branch of an authorised dealer to whom export documents in respect of all software exports made via dedicated earth stations / satellite links will be submitted by him together with the relative SOFTEX forms for negotiation / collection.

Disposal of SOFTEX Form

(i) After certifying all three copies of SOFTEX Forms the designated DoE Official will forward the original directly to the nearest office of the Exchange Control Department of Reserve Bank. The duplicate will be returned to the exporter and the triplicate will be retained by the DoE for their record.

(ii) Within 21 days, from the date of certification of SOFTEX Form by DoE the exporter should submit the duplicate copy together with a copy each of the supporting documents to the authorised dealer. The duplicate copy of the form together with documents will be retained by the authorised dealer till full export proceeds have been realised and repatriated and thereafter will be submitted to Reserve Bank, duly certified under cover of an appropriate R return along with the copy of invoice/s.

Check List for Export Declaration

STP Unit are required to file a copy of Purchase Order / Agreement / Contract with STPI as soon as the STP unit enter into purchase agreement with their client. This can be done one time before raising the first invoice.


Check for Softex form is neatly typed.


Check for the Address of the Exporter.


Check for the STPI Center Address.


Check for the Importer and Exporter Code number.


Check for the Buyer’s name and address.


Check for the Date and Number of Invoice.


Check the Purchase Order is submitted to STP authorities.


Confirm is there any Royalty i) Check the Data Comm. Service Provider (STPI / VSNL / DOT /


Internet / Others)


Check for the Software Category is defined (906, 907, 908, 909, 910 & 911).


Check for the Export Value Currency and Amount as per the Export Invoice and


Agreement / Contract / Purchase Order.


Check for the Authorised Dealer and Code No.


Application for DTA sales Format

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