With a view to enhance ease of doing business and reduce existing compliance burden, the Ministry of Commerce & Industry, SEZ Division (“Ministry”) has notified that the practice of submitting physical copies of SOFTEX and invoices by SEZs be dispensed with. Now, for the purpose of verification, any document including relevant invoices may be obtained electronically from the units with the approval of Development Commissioners (“DC”). In exceptional cases, where there is a need for more detailed verification, the DC may permit seeking sample copies of relevant invoices in physical mode, on a case-to-case basis.
Background:
The Reserve Bank of India had issued Guidelines on reporting on foreign exchange transactions through FETERS system by using specific purpose codes based on the nature of transactions.
In case of SEZ units, the SOFTEX Form is submitted online through SEZ-Online portal by the services units and thereafter, based on the approval of the office of Development Commissioners (DC) further submitted to RBI. It has been noticed that SEZ units are submitting the physical copies of invoices and in some cases, even physical copies of SOFTEX forms for verification to DC office despite the same is being filed online digitally. It is also noted that in case of units in STPI, the practice of submitting physical copies of SOFTEX and invoices has been dispensed away.
Accordingly, as a measure of enhancing ease of doing business, it has been decided to dispense with the practice of submitting physical copies of SOFTEX and invoices by SEZ units.
A copy of the Notification is linked below for your ease of reference.
Source: Ministry of Commerce & Industry, SEZ Division
