- If DTA units exporting software services fail to declare their software exports and get them certified in SOFTEX forms, this is a violation of the Foreign Exchange Management (Export of Goods and Services) Regulations, 2015.
- This will result in legal action under Section 13(1) of the FEMA, and a penalty of up to threefold the amount involved in the violation may be levied.
- Furthermore, the DTA Unit may be subjected to a continuous penalty of up to INR 5,000 for each day the infringement persists after the first day.
- In the absence of certified SOFTEX forms, banks will treat inbound foreign exchange remittances as proceeds realised for service exports. Accordingly, BRCs will be provided verifying that the funds were received for service exports rather than software exports.
- This will act as deterrent to the business entities in claiming that they have previous export performance for participation in tenders related to software projects