Other Regulatory

The DGFT made <strong>annual IEC updation mandatory in 2021</strong>. Every IEC holder must electronically update (re-confirm) the IEC on the DGFT portal <strong>between April and June every year</strong>, even if no details have changed. If the update isn't filed within the window, the IEC is <strong>automatically deactivated</strong> — which in turn blocks shipping-bill filing, RoDTEP scrip credits, and every other downstream export document. Reactivation is available but requires the updation filing plus, in some cases, a written request through the Regional Authority.

No. The <strong>Services Exports from India Scheme (SEIS) was discontinued for services rendered on or after 1 April 2022</strong>. Claims for service exports rendered up to 31 March 2022 continue to be processed subject to the notified cap and time limits prescribed by DGFT. There is currently <strong>no RoDTEP-style successor scheme for service exports</strong> — the government has confirmed RoDTEP only for goods. Service exporters should focus on ensuring the earlier SEIS claims are filed and redeemed within the window, and factor the absence of a services incentive into pricing.

Every invoice raised on a non-resident customer for software or IT/ITeS services is reportable on a <strong>Softex form</strong>, filed on the STPI portal and certified by STPI, whether or not the unit is STPI-registered. The timing is <strong>within 30 days of raising the invoice</strong> (or within 30 days of the last invoice of the month, if <strong>bulk / consolidated Softex</strong> has been approved). The AD bank cannot credit export proceeds to the EEFC or current account without a STPI-certified Softex on record — so a missed Softex directly blocks repatriation and downstream forex use. High-volume exporters should operationalise bulk-Softex early to cut the per-invoice effort.

The <strong>Certificate of Enlistment (trade licence)</strong> issued by the Kolkata Municipal Corporation under the Kolkata Municipal Corporation Act 1980 is <strong>renewed annually, by 31 March</strong>. Late renewal attracts a surcharge; non-renewal exposes the establishment to notice and possible disconnection of services. The licence fee is linked to the capital employed / trade category declared. On top of this, the establishment should hold a current West Bengal Shops & Establishments registration and be enrolled for West Bengal professional tax — those are the three baseline local registrations for any commercial setup operating within KMC limits.

The <strong>FCRA (Amendment) Act 2020</strong> tightened the framework substantively. The big changes — (i) every FCRA-registered entity must now route all foreign contribution through a <strong>designated FCRA account with the State Bank of India, Main Branch, New Delhi</strong>; utilisation sub-accounts may be opened in other banks but contribution can land only in that designated account; (ii) <strong>administrative expenses are capped at 20%</strong> of foreign contribution (down from 50%); (iii) <strong>sub-granting is prohibited</strong> — an FCRA-registered entity cannot transfer foreign contribution to any other person/entity, including other FCRA-registered NGOs; (iv) Aadhaar of office bearers is required at registration. The <strong>FC-4 annual return is due by 31 December</strong> following the end of the financial year, and a <strong>quarterly disclosure of foreign contribution received</strong> must now be published on the organisation's own website within 15 days of quarter-end.

A standard STPI registration — LoP (Letter of Permission) from the jurisdictional office with supporting IEC, GST, PAN, MoA/AoA, directors' KYC and a board resolution — typically takes <strong>3–4 weeks</strong> once the file is clean. The benefit is twofold — (a) <strong>legitimacy and streamlined Softex certification</strong> (STPI units get batch / bulk Softex more readily), and (b) duty-free import of capital goods into the bonded warehouse where a physical unit is set up. For a pure DTA (Domestic Tariff Area) software exporter operating out of leased / co-working space, STPI registration is often over-engineering — the non-STPI route with standard Softex filings works and costs less to maintain. We evaluate the mix on volume, capital goods import plans, and customer base before recommending either route.