Hello everyone,
I’m seeking some advice regarding an issue I’m facing with SOFTEX filing requirements in India, specifically when selling SaaS products and software services to foreign clients through PayPal.
My business involves exporting both SaaS products and software implementation/consultancy services. For these exports
- P0802: For software implementation/consultancy services. (No SOFTEX)
- P0807: For off-site software exports, which requires processing via SOFTEX.
SOFTEX filing is mandatory in India for companies exporting software, and it requires detailed information like client contracts and the value of the exported software. However, I’m finding it challenging to align these requirements with how PayPal handles transactions. Specifically, I’m not sure how to obtain the necessary purchaser contract details and other documentation required by SOFTEX from PayPal.
Additionally, the SOFTEX process mandates that the payment be credited directly to the merchant's bank account, and I’m uncertain how this requirement is managed when using PayPal.
Here are the main questions I’m struggling with:
How do I ensure compliance with SOFTEX filing when using PayPal, especially since PayPal doesn’t seem to provide detailed purchaser contract information?
Does PayPal support Indian merchants in fulfilling legal obligations like SOFTEX filing, particularly concerning client contracts and foreign exchange inflow documentation?
Is there a recommended process or workaround that other merchants have used to meet SOFTEX and RBI compliance when exporting software through PayPal?
This issue is quite important for my business, as non-compliance with SOFTEX filing could lead to legal complications. I would really appreciate any guidance or insights from others who have faced similar challenges.
Thanks in advance for your help!
Best regards
