The RBI has clarified that individuals providing services abroad, such as tutoring or small software projects, do not need to report any amounts under new EDF rules. For exporters, a self-declaration is sufficient for amounts up to 10 lakh rupees per bill. Further information will be provided in an FAQ soon.
RBI : individuals serving clients abroad (tutoring, small software) are NOT required to report under the new EDF rules, any amount.
For exporters: “up to 10 lakh rupees per bill, not annually… a self declaration will suffice”
FAQ soon
- 00:00 – 00:31: Question relates to the new FEMA rules that came into effect from 1st of October. There is a lot of complaints or concerns that are being raised with respect to the new form that the export declaration form that now needs to be filled even smaller freelancers or content creators are subject to that form which they say it’s going against the ease of doing business with on the one hand. So what is is RBI going to relook at some of these things what is your opinion on that? Rohit will you take this question.
- 00:33 – 01:35: The new trade regulations were issued in January sufficiently in advance of the timeline of October 1. They have come into effect from October 1 and the whole intent of bringing these new trade regulations has been to liberalize the handling of trade matters by authorized dealers, simplify the processes, promote ease of doing business. And the service exports and imports have been included for reporting purposes now. But the individuals are not included with respect to the reporting requirements for the contracts of a personal nature. So there seems to be some misunderstanding on the reporting obligations which we will clarify shortly through an FAQ. But the whole gamut of new trade regulations are a step forward to simplify matters, reduce the burden on authorized dealers as well also on the concerned exporters and importers. It’s a way forward in a positive sense.
- 01:36 – 03:54: Now two more clarifications I will give. One clarification he has given is that individuals whether for imports or for exports irrespective of the amount are not required. I think there is some doubt with regard to that. They they are not required. So if you are subscribing to a TV channel or an app or to some journals or newspapers or you are providing on the other hand services as an individual outside could be tutoring services could be some software etc. and getting paid for it those as individuals are not required to be reported as already clarified by Rohit. But it’s important that’s why you know I’m repeating this for the benefit of your viewers. And the second is that for small even the exporters if the amount is small up to 10 lakh rupees per bill not annually per bill 10 lakh rupees then a self-declaration will suffice and an invoice there is some concern about uploading and giving invoices. But up to 10 lakh rupees an exemption has been given as I mean an alternative not an exemption but an alternative has been given which is in the form of a self-declaration form. The third is that on the IDI EPMS the system that we have the portal that we have the reporting is to be done by the banks and the ADs by the intermediaries and not by the individual exporters and importers. They have to only provide this information to the ADs or the banks. Now some of this information they were already providing at the time of the payments they were providing a purpose code and some other information. Some more information is what you know we have asked them to provide and this will only improve our data reporting and availability of data with respect to services exports.
