SOFTEX Form Format

The whole idea of the post is to share the MS Excel format of SOFTEX Form. I use this format to efficiently create a large number of forms in less time compared to conventional word file that is available for download. Let us begin with some background on the SOFTEX Form:

STP Scheme is a 100% Export Oriented Scheme for undertaking Software Development/IT enabled services for Export using Data Communication links or in the form of physical exports including export of professional services for rendering consultancy services and development of software.

Software developed can be exported through Data communication Link / physical Media or software can be developed at customer site abroad by deputing software professionals of the unit.

As soon as the software is exported using Satellite Data Communication link, a software declaration in the prescribed form called SOFTEX form has to be submitted duly filled in, in TRIPLICATE to the STPI for clearance within 30 days from the date of Invoice along with the following documents.

1. Invoice (3 copies)
2. Customer agreement /W.O / P.O
3. Project Details in the from prescribed by STPI, Hyderabad
4. Data transmission details in support of the export of software (in the prescribed form)
5. In cases where data communication link is obtained from a service provider other than STPI, appropriate documents in support of such connectivity.

Source: STPI Hyderabad

Download Format of SOFTEX:

• Excel: Prepared by Me
  



• Word: Source STPI Hyderabad
  

You can refer to the Guide to setup Export Unit under STP Scheme on the STPI Hyderabad Site for more details.

Copyright on Computer Software

Sec 2(ffc): “Computer Programme" means a set of instructions expressed in words, codes, schemes or in any other form, including a machine readable medium, capable of causing a computer to perform a particular task or achieve a particular result;

Sec 13: States that the copyright subsists on original literary, dramatic, musical and artistic works among others, no mention of computer software. That is merely because you have coded something you can not claim copyright on it. You have to register it. On the BSA site they say that Computer software is treated as Literary work and copyright subsists.

Sec 14 (b): Defines the meaning of copyright on computer software - where it states that to do or to authorize to reproduce, issue copies, to sell or give on commercial rental among others.

Sec 16: No copy right except as provided under the Indian Copyright Act.

Sec 51: Defines the copyright infringement as any person without a licence granted by the owner of the copyright or the Registrar of Copyrights does anything (refer Sec 14) and makes for sale, distributes, sell, rents etc.

Sec 52(aa): Certain acts are not infringement of copyright: the making of copies or adaptation of a computer programme by the lawful possessor of a copy of such computer programme, from such copy-

· In order to utilise the computer programme for the purposes for which it was supplied.

· To make back-up copies purely as a temporary protection against loss, destruction or damage in order only to utilise the computer programme for the purpose for which it was supplied.

· The doing of any act necessary to obtain information essential for operating inter-operability of an independently created computer programme with other programmes by a lawful possessor of a computer programme provided that such information is not otherwise readily available.

· The observation, study or test of functioning of the computer programme in order to determine the ideas and principles which underline any elements of the programme while performing such acts necessary for the functions for which the computer programme was supplied.

· The making of copies or adaptation of the computer programme from a personally legally obtained copy for non-commercial personal use.

Sec 63: Provides that a person who knowingly infringes shall be punishable with imprisonment for a term of six months and with fine of fifty thousand rupees. Further provided that where infringement has not been made for gain in the course of trade or business the court may, for adequate and special reasons to be mentioned in the judgment impose impose a sentence of imprisonment for a term of less than six months or a fine of less than fifty thousand rupees.

Sec 63B: Provides that where a person uses a infringing copy of a computer program shall be punishable with jail term of 7 days to 3 years and fine of 50K to 200K.

More to Munch on:

Study on Copyright Piracy in India

BSA - Piracy and the Law

INDIAN COPYRIGHT ACT, 1957 – PDF File

Service Tax Provisions - 100% Export BPO OPS

1. The Provisions relating to the Export Services are contained in the Export of Services Rule 2005 issued per Notification No 9/2005-ST dated 3-3-2005 and further amended by the Notification No. 13/2006-ST dated 9-4-2006.

2. The Export Rules provide for 3 types of Export Services (Rule3) out of which services like BPO etc. fall in the 3rd Category i.e. under Rule 3(iii).

3. Rule 3(iii) reads as follows:

3. Export of taxable service.– (1) Export of taxable services shall, in relation to taxable services‚–
(iii) specified in clause (105) of section 65 of the Act, but excluding‚–
(a) sub-clauses (zzzo) and (zzzv);
(b) those specified in clause (i) of this rule except when the provision of taxable services specified in sub-clauses (d), (zzzc) and (zzzr) does not relate to immovable property; and
(c) those specified in clause (ii) of this rule,

when provided in relation to business or commerce, be provision of such services to a recipient located outside India and when provided otherwise, be provision of such services to a recipient located outside India at the time of provision of such service:

Provided that where such recipient has commercial establishment or any office relating thereto, in India, such taxable services provided shall be treated as export of service only when order for provision of such service is made from any of his commercial establishment or office located outside India.

4. Therefore the BPO Services as said by you squarely fall within the Rule 3(iii) of the said Rules.

5. Further Clause 2 of Rule 3 provides the following:
(2) The provision of any taxable service shall be treated as export of service when the following conditions are satisfied, namely:–
(a) such service is delivered outside India and used outside India; and
(b) payment for such service provided outside India is received by the service provider in convertible foreign exchange.

6. Rule 4 states that any taxable services may be exported with out payment of tax.

7. The following is the text of Rule 5: Which states that the Govt. may grant the rebate of the service tax paid on export service, and on IPS and ED paid on IPS.

Rebate of service tax.- Where any taxable service is exported, the Central Government may, by notification, grant rebate of service tax paid on such taxable service or service tax or duty paid on input services or inputs, as the case may be, used in providing such taxable service and the rebate shall be subject to such conditions or limitations, if any, and fulfillment of such procedure, as may be specified in the notification.

8. The provisions for grant of Rebate are contained in the Notification No. 11/2005-ST Dt 19-4-2005: The following are some of the conditions among others:

(a) that the taxable service has been exported in terms of rule 3 of the said rules and payment for export of such taxable service has been received in India in convertible foreign exchange;
(b) that the service tax and cess, rebate of which has been claimed, have been paid on the taxable service exported

9. The Clause 3 of the Notification No 11 gives the procedure for the claim. Basically you have to give an application in Form ASTR-1 - the format is given in the same notification. But the problem is that this talks about rebate and not refund - which is applicable as in your case.

10. Let us dig into the Cenvat Credit Rules 2004 a bit (Notification 23/2004 dated 10-9-2004) : Rule 3(1) states that a provider of taxable service can take CENVAT credit of ST and ED on InPuts /InPutService/CapitalGoods - that is you should have taxable -read as domestic services - to take the benefit of Cenvat Credit. As per Rule 3(4) This Credit can be used for payment of ServiceTax on OutPutService. If you have only export services you will not be a provider of taxablel services and you will not be able to take Cenvat Credit.

11. The Rule 5 of the Cenvat Credit Rules provides for Refund of Cenvat Credit. Where the OPS is exported there shall not be any ST the same. The IP/IPS credit taken remaining unutiliesd may be diverted to other OPS. Balance still remaining utilisable may be refunded to the Service Provider, provided export incentives like drawbacks, rebate etc are not availed.

12. So you can claim the entire Cenvat Credit on the IPS/IP that you have taken but could not utilize, however this provision will not be applicable if you do not have any OPS that is taxable.

Copyright on Downloaded Music

Before we discuss about the piracy and copyright violation it is prudent that we understand what these words refer to:

What is Piracy?

• Robbery on the high seas; taking a ship away from the control of those who are legally entitled to it
• The act of plagiarizing; taking someone’s words or ideas as if they were your own.
• The unauthorized use or reproduction of copyrighted or patented material: software piracy.

What is copyright?

• a document granting exclusive right to publish and sell literary or musical or artistic work
• The legal right granted to an author, composer, playwright, publisher, or distributor to exclusive publication, production, sale, or distribution of a literary, musical, dramatic, or artistic work.

What is then Copyright Violation?

• Copyright infringement is the unauthorized use of copyrighted material in a manner that violates one of the copyright owner’s exclusive rights, such as the right to reproduce or perform the copyrighted work, or to make derivative works that build upon it.

These definitions are from Answer.com and Wikipedia, but they are not relevant in legally for determining the copyright provisions towards listening to music in India. Therefore I read the Indian Copyright Act to see what it provides. I have summarized the relevant provisions below.

A Discussion of Indian Copyright Act 1957

• Sec 13 states that the copyright subsists on original literary, dramatic, musical and artistic works among others.
• Sec 14 defines the meaning of copyright where it states that to do or to authorize to reproduce, issue copies, public performance, translation and adaptation among others.
• Sec 27 provides the term of copyright is 60 years – from the year in which the record was first published.
• Sec 51 defines the copyright infringement as any person without a licence granted by the owner of the copyright or the Registrar of Copyrights does anything (refer Sec 14) and makes for sale, distributes, exhibits in public.
• Sec 52 Certain acts are not infringement of copyright: fair dealing for the purpose of Private use, including research, criticism, review, or for teaching.
• Sec 63 provides that a person who knowingly infringes shall be punishable with imprisonment for a term of six months and with fine of fifty thousand rupees. Further provided that where infringement has not been made for gain in the course of trade or business the court may, for adequate and special reasons to be mentioned in the judgment impose impose a sentence of imprisonment for a term of less than six months or a fine of less than fifty thousand rupees.
• Sec 63B provides that where a person uses a infringing copy of a computer program shall be punishable with jail term of 7 days to 3 years and fine of 50K to 200K.

Conclusion:

• You can rip the songs from your CD and listen it privately – as provided in the Sec 52. However should you share with any one the you are into murkier waters.
• Sec 63B provides for punishment for use of infringed software; however there is no such provision similar to Sec 63B for sound recording. That means infringing copyright on sound recording is punishable but using Infringed sound recording for private purpose is not a violation of Copyright Laws - Sec 52 comes to your rescue.
• There is a logic behind this loophole. Let me explain by an example, Suppose you are playing music on the loud speakers for all to heare. Then you are indulging in piracy, however should a passerby happens to walk by you and listens to your music he can not be held responsible for piracy.