India is the 3rd largest startup ecosystem in the world so there are lot of the tech entrepreneurs whose are running the software companies or freelancer which gives their services in the foregin countries but they are always confuse about the IEC Code (Import Export Code). Is it required for the export of the services or service providers ? so learn in this guide on your all the doubts regarding the import export code for the services.
IEC Code stands for the Import Export Code which is mainly required for the person who’s want to export the goods or services to other countries from India. its has been allotted by the DGFT.
Must Read : IEC Code Registration
So in the case of the service providers or export of the services if you are planning to import export any type of the technology or service then there are some relaxation in the provision from the government which are following :
IEC Code is required only in the case of “specified” service or “specified” technology. these categories are consist of the all areas which are related to the national security like if you are dealing in nuclear weapons or some automatic guns etc. even government of india provides lot of the export benefits under the foregin trade policy so if you have a plan to avail the benefits under the export scheme then you have to required the IEC ( Import Export Code) for the same.
Note – there is special note that if you are doing import export service or technology for the personal use or its made by the government then it’s not required the IEC(Import Export Code).
Conclusion :- So ultimately if you are planning import export of the services or technology except the above specified then its not required the IEC(Import Export Code). you can easily done the transactions with the foregin countries without IEC Code.
Some Common Doubts by the Service providers :-
a) While i go to bank for opening a current bank account for my sole proprietorship firm then they are asking for the IEC Code to credit the foregin transactions via SWIFT Code ?
Ans : In that case just give the reason to your bank’s representative that you are doing the non specific service or technology business so it’s not required the IEC Code, just provide them your legal entity proof of the firm or company.
b) if i want to import or export the goods with the services then is it required the IEC Code ?
Yes if you want to import or export of the goods then its required the IEC Code.
So hope guys you like this guide, if you have any query then just place a request on the MyOnlineCA.