IEC code- Exporter of Service - accounting/IT support service

[Shan S]

Does IT or accounting outsource support need IEC code registration?

Can you let me know what is the importer exporter code used for?

[YAGAY and SUN]

If your business is engaged only in IT outsourcing, software services, accounting outsourcing, bookkeeping, payroll processing, or other professional/support services for foreign clients, IEC is generally not required solely for exporting those services. The more important compliance aspects are GST export documentation and proof of receipt of foreign currency through authorized banking channels.

However, it is highly adviseable to apply for IEC from DGFT or Development Commissioner (as the case may) for availing certain benefits as granted by GOI, EPCs, GST Department.

[Raam Srinivasan Swaminathan Kalpathi]

Dear Querist

Primari reason why IEC is required if there is a plan to import goods into or export goods out of India. IEC is also mandated if you are availing or eligible for any benefits / incentives under Foreign Trade Policy. If you are seeking/ availing neither IEC is not required. Thanks

[Kashish Gupta]

IEC registration is generally not required for exporting services such as IT outsourcing, accounting outsourcing, bookkeeping, or payroll processing to foreign clients. For such service exports, the primary compliance requirement is proper GST export documentation and proof of receipt of foreign currency through authorized banking channels. The IEC code is principally meant for businesses that physically import or export goods across Indian borders. However, it is advisable to obtain an IEC from DGFT if you intend to claim any benefits or incentives under the Foreign Trade Policy, such as SEIS or other export promotion schemes. In short, if you are purely a service exporter with no goods trade and are not seeking any government export incentives, IEC is not mandatory for your business. It is pertinent to note that a separate application is required to be made for obtaining IEC registration from DGFT; however, upon grant of the registration, the IEC number allotted is the same as the PAN of the applicant.

AI Summary

Import Export Code not generally required for service exports; GST documentation and foreign currency proof remain key. Import Export Code registration is generally not required for exporting services such as IT outsourcing, accounting outsourcing, bookkeeping, payroll processing, or similar support services to foreign clients. For such service exports, the main compliance requirements are GST export documentation and proof of receipt of foreign currency through authorised banking channels. IEC is principally meant for businesses that import or export goods, but it may be advisable where export incentives under the Foreign Trade Policy are sought. The IEC application is separate, and the IEC number allotted is the same as the applicant's PAN.