India being an agriculture based country,majority of the revenue comes from agriculture sector.But you will amazed to know that in FY 2013-14,India’s GDP accounted for just 4.6% and in which service sector accounted for 55% of the total GDP.This data has proved the service sector to be the fastest growing sector of India.But still indian government has not identified it as a potential sector and has failed to amend any clear regulations.
There is no clear cut demarcation of procedure outlined by indian govt. for service exporting company so we thought why not to ease your difficulties by sharing with you the details process of exporting non-physical/intangible goods in India.
For any service/non physical/intangible goods exporting company,it needs to perform the following procedure for every order received to make it legally binding to the indian regulations :
1. Registration Process
Any service exporting company needs to get registered with two governing bodies before initiating any import or export.
- Registration with DGFT :
— Directorate General of Foreign Trade (DGFT ) is the body employed by Ministry of Commerce and Industry of the Government of India, which performs execution of the import and export Policies of India.
— The company has to be registered with DGFT to initiate any import or export.
— it is a licensing authority to importers and exporters & their business which assigns 10 digit Importer Exporter Code (IEC) to perform import or export.
- Registration with STPI :
— Software Technology Parks in India (STPI) is the main governing body employed by Ministry of Commerce and Industry of the Government of India,which manages the development and export of computer software.
— Registering to it provides the company with various benefits like 100% foreign equity, tax incentives, duty-free import, duty-free indigenous procurement, CST reimbursement, DTA entitlement, deemed export etc.
— Now,there are two categories for registering any company to STPI –
First is STPI (which is for physical goods exporting company) and
Second is Non- STPI (which is for non-physical exporting company).
— The service exporting company needs to get register with second category that is “non-STPI