Selling IT related service outside India

Saj (Querist) 23 September 2009 This query is : Resolved
What would be the procedures, indian IT companies come upon while selling software services and products to outside clients ?

Is Software Technology Park (STP) registration required for all IT companies exporting software ?riven

Follow Query

Report Abuse

A V Vishal (Expert) 23 September 2009
Saj

There is no specific procedure for selling IT software services, however, there are different products which cover IT field some tangible while others intangibles, if the product is tangible then local registration under customs is must to export these products along with VAT. However, VAT is not applicable to exports sales, nonetheless you require to declare the exempt export sales.
Further, if you go for STP registration then you have the following benefits:

Income Tax Holiday as per section 10A of the IT Act.
100% Customs duty exemption on imports
Equipment can also be imported on loan or lease basis.
All relevant equipment/goods including second hand equipment can be imported (except prohibited items)
100% excise duty exemption on indigenous procurement.
Central Sales Tax reimbursement on indigenous purchases.
Green card enabling priority treatment for Government clearances / other services.
100% foreign equity investment in the companies permissible under the Automatic Route of RBI.
Sales in the DTA (Domestic Tariff Area) up to 50% of the foreign exchange earned by the unit.
riven