RBI Updates

Simplified and Revised Procedure for Reporting of Software Exports

The Reserve Bank of India (RBI), vide A.P. (DIR Series) Circular No. 80 dated 15th February, 2012, has revised the procedure for reporting the software exports to Software Technology Parks of India (STPI). This procedure is applicable to those software exporters whose annual turnover is excess of Rs. 1,000 Crores or who submits at least 600 Softex Forms annually. As per the procedure:

This new procedure is applicable w.e.f. April 01, 2012 in Bangalore, Hyderabad, Chennai, Pune and Mumbai and w.e.f. June 2012 in rest of India.

The annexure to the Circular provides the Revised Procedure fo reporting of Software exports to STPI, the Authorised Dealer and online submission of Periodic Export Declaration.

Clarification – Purchase of Immovable Property in India – Reporting requirement

As per the extant Regulations, a person resident outside India, acquiring a branch, office or other place of business in India excluding a liaison office, may also acquire any immovable property in India, which is necessary for or incidental to carry on such activity, subject to the condition that such person is required to report to Reserve Bank in the declaration Form IPI within ninety days of such acquisition.

Such provision seems to convey that every person resident outside India acquiring immovable property in India is required to do such reporting to Reserve Bank. Clarifying the interpretation, Reserve Bank of India issued the Circular No. 79 dated 15th February, 2012 stating that extant regulations do not prescribe any reporting requirements for transactions where such person resident outside India is a Citizen of India or a Person of Indian Origin (PIO) who acquires any immovable property in accordance with the provisions of Foreign Exchange Management (Acquisition and transfer of immovable property in India) Regulations, 2000.