import export code in jaipur-khanna & associates
TRANSCRIPT
Import Export Code (IEC) Procedure in Jaipur-Khanna & Associates LLP
A Complete Guide to Obtain EIC
Directorate General of Foreign Trade has started operationalising online filing of Importer
Exporter Code (IEC) applications, online processing and issue of e-IECs in digital format. Now
new entrepreneurs/exporters/importers can apply online for issue of new IEC from the comfort
of their home/IT Kiosk with no more visits to the Regional Authority's office required, and
upload the documents and pay the required fee through Net banking.
Even the processing of such applications by Regional Authority of DGFT would be done online
(no paper work in the office; less storage space required and no misplaced documents) and the
digitally signed e-IEC (no more IECs in physical form) would be issued/emailed to the
applicants within two working days.
In case the application is incomplete or otherwise ineligible, the same shall be rejected and an
auto generated Rejection letter/email (with reasons for rejection) would be sent to the applicant -
within two working days only. There would not be any 'Deficiencies letters' now (no more
discretion at the level of RAs and consequent elimination of possible delays and corruption).
Efforts are underway to allow/enable payment of fee through Debit/Credit cards, which would
further facilitate this process. Once implemented the Online system would be made mandatory.
However, till such time payment through Debit/Credit cards is enabled, the existing
offline/manual system has also been allowed side by side, in order to facilitate those applicants
who do not have Net banking facility.
Efforts are also underway for message exchange/integration of our system with Income Tax
department and Ministry of Corporate Affair for verification of PAN and DIN/CIN details
respectively. Once implemented, this would further reduce the processing time of e-IEC
applications at RA level (possibly one day only).
This is an important and path breaking initiative by Department of Commerce/DGFT towards
"Digital India" vision of Prime Minister of India and "Ease of Doing Business".
What is IEC code and How to obtain Import Export Code number?
IEC Stands for IMPORTER EXPORTER CODE which contains 10 digit number issued by
Director General of Foreign Trade, Department of Commerce, Government of India.
Who requires an Importer Exporter Code ?
Any bona fide person/ company starting a venture for International trade of Export and Import.
If any foreign transfer on account of business, IEC number is mandatory.
Can Export /Import be made without Importer Exporter Code ?
No. IEC forms a primary document for recognition by Govt. of India as Exporter / Importer.
However, if value of goods is very law, the concerned customs officer may permit first export
(only one time) by imposing penal charges.
What are the benefits of Importer exporter code ?
Import Export Code number is the primary proof of a firm as an Exporter/Importer in India.
IEC number can be submitted with government authorities as a proof of exporter/importer to
obtain various benefits on their exports / imports from DGFT, customs, Export Promotion
Council etc.
Where to obtain an IEC ?
IEC number is issued by Directory General of Foreign Trade at each regional offices where the
exporter/importer situates.
How to apply for an Importer Exporter Code?
The necessary application for Import Export Code number can be downloaded from DGFT
website and follow procedures.
Can I apply Import Export Code application by online?
Yes, the application can be filed for issue of new Importer Exporter code.
Do I need to fill Aayaat-Niryaat Form after submission of online data ?
No, after filing application online, take a print out and attach the necessary documents submit.
There is no additional requirements for filling form.
What are the documents needed for an Importer Exporter Code application ?
Document are listed below (Please reconfirm with the authorities, as these information can
be changed amended time to time)
Bank Receipt / Demand Draft details evidencing payment of application fee of Rs. 1000/-.
DD should be in favour of Zonal JDGFT, New Delhi.
Certificate from the Banker of the applicant firm in the format given in Appendix 18 A (Part
B).
Self-certified copy of Permanent Account Number (PAN) issued by Income Tax uthorities.
Two copies of passport size photographs of the applicant. Photograph on the bankers
certificate should be attested by the banker of applicant.
Self-addressed envelope duly stamped for Rs.25/- (Amount may differ time to time; you
may get exact amount from issuing authority)
These documents may be kept securely in a file cover.
Can Bank Certificate be from any of my current accounts in the same name of firm to
apply for IEC number?
No, such bank certificate should be the bank through which you are going to transact your export
import procedures and formalities with foreign buyers.
Why is addressed and stamped envelope required along with application for Import
Export Code number?
The letter containing the IEC number is sent to the applicant in such envelope.
Should I need to attest PAN number from any gazette officers/notary while applying for
Import Export Code number?
No, you can self attest the copy of PAN, when applying for IEC code number.
Is PAN Number / PAN card is essential in IEC? What are the alternatives?
Yes, PAN is mandatory. Photocopy of PAN card has to be submitted along with the application
of IEC. If PAN card is not issued to the applicant then a copy of PAN allotment letter from I.T.
Department will also be accepted.
Do I have to show PAN Card for verification in IEC?
No. Only one IEC would be issued against a single PAN number. Any proprietor can have only
one IEC number and in case there are more than one IECs allotted to a proprietor, the same may
be surrendered to the Regional Office for cancellation.
Can IEC be hand delivered / over the counter?
No, IEC’s issued are dispatched through Speed Post.
Why IEC number is sent by mail?
As per the authorities, this is one of the procedures for address verification of Exporter/Importer.
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An Action Plan for Start up/Stand up India/Jaipur as per companies act
2013-Khanna & Associates
All you Need to Know
KHANNA & ASSOCIATES is a 70 year old taxation lawyer and chartered accountant
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Prime Minister Narendra Modi has kicked off the ambitious Startup India Movement. The government programme
aims to fill gaps in the economy for the growth and development of startups and will aim to boost digital
entrepreneurship at the grassroots.
What is a Startup?
Most countries would define a startup with parameters such as age, growth, revenue, profitability or even
stability.The essence of startups is generally related to the concepts of technology, innovation, scalability, and
entrepreneurship.
Many of the world’s largest technology companies, including Google and Facebook, still consider themselves to be
startups in one sense or another. Indeed, they see being a startup as more of a state of mentality of innovation and
problem solving for masses. Startups – a proposed legal definition. As the Government of India proposes to provide
tax incentives and other benefits for Startups, it is imperative that a clear definition of Startups is provided in the
proposed notification. A Startup status depends on its age, revenues, profits, employees, business and technology.
Therefore, a draft legal definition that covers the following elements can be included in the proposed
notification: -
A Startup is an incorporated legal entity of not more than 7-years, which uniquely uses technology to deliver
products, services or solutions across India, and in any Financial-Year it has,
ü Annual profits of less than Rs. 5 crores
ü Annual revenues of less than Rs. 100/- crores; and less than 100 direct-employees on it’s rolls; and
ü Also market capitalization of less than Rs. 100 crores.
This proposed definition of Startups has several advantages for Government of India. These
advantages are:
A startup status can be given to any kind of entity- it can be a company:-
Ø LLP Partnership
Ø Section-8 not-for-profit
Ø Society
Ø Trust or even proprietorships.
The annual profits, revenues, employment, market capitalization, patent filings are all measurable and can be
supported with paper-evidence and proof — Indian bureaucracy likes this.
This Startup definition will require startups to solve a problem that caters to India. Many startups may have market
exclusively outside India (for example a call center), and such Startups cannot be eligible to seek Incentives from
Government of India – funded by Indian tax payer’s money.
The Sops
A very supportive Government came out with number of sops for Indian startups.
Important sops includes:-
Ø Tax exemptions for three years
Ø Concessions on capital gains tax
Ø Compliance simplification
Ø Self-certification
Ø No regulatory inspection for three years,
Ø A Rs. 10,000 crore fund to back startups, 90 days to close down a startup, 80 % reduction in patent filing fee,
Ø And also a mobile app to be launched on April 1 making it possible to register startups in one day.
The Honorable Prime Minister was quick to point out that the startup package is commitment of ‘Minimum
Government with Maximum Governance’. It is not interested in licensing a startup, but providing support
and funding, where ever necessary. A visibly excited startup industry has welcomed the announcements with
a big applaud.Many entrepreneurs were excited by the announcements made by Prime Minister Narendra
Modi as part of the Startup India Action Plan.
In addition, for a startup to be recognized as one,
Ø It must be an entity registered/incorporated as a:
Ø Private Limited Company under the Companies Act, 2013; or
Ø b. Registered Partnership firm under the Indian Partnership Act, 1932; or
Ø c. Limited Liability Partnership under the Limited Liability Partnership Act, 2008.
Ø Five years must not have elapsed from the date of incorporation/registration.
Ø Annual turnover (as defined in the Companies Act, 2013) in any preceding financial year must not exceed Rs. 25
crore.
Ø Startup must be working towards innovation, development, deployment or commercialisation of new products,
processes or services driven by technology or intellectual property.
The Startup must aim to develop and commercialise:
A. new product or service or process; or
B. significantly improved existing product or service or process that will create or add value for customers or
workflow.
C. The Startup must not merely be engaged in:
D. developing products or services or processes which do not have potential for commercialisation; or
E. undifferentiated products or services or processes; or
F. products or services or processes with no or limited incremental value for customers or workflow
G. The Startup must not be formed by splitting up, or reconstruction, of a business already in existence.
H. The Startup has obtained certification from the Inter-Ministerial Board, setup by DIPP to validate the innovative
nature of the business, and
ü be supported by a recommendation (with regard to innovative nature of business), in a format specified by DIPP, from
an incubator established in a post-graduate college in India; or
ü be supported by an incubator which is funded (in relation to the project) from GoI as part of any specified scheme to
promote innovation; or
ü be supported by a recommendation (with regard to innovative nature of business), in a format specified by DIPP, from
an incubator recognized by GoI; or
ü be funded by an Incubation Fund/Angel Fund/Private Equity Fund/Accelerator/Angel Network duly registered with
SEBI* that endorses innovative nature of the business; or
ü be funded by the Government of India as part of any specified scheme to promote innovation; or
ü have a patent granted by the Indian Patent and Trademark Office in areas affiliated with the nature of business being
promoted.
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