Fraudulent Software exports flood black Money?.

 

The information provided here is part of Online Export Import course 

 

Government fails to assess the value of intellectual property, results inflation. An open letter to Ministry of Finance.
Does RBI fail to monitor SOFTEX and GR?
Do fraudulent software exports also cause for inflation and price hike?


Fraudulent Software exports flood black Money Among billions in the world, the author of this blog also wonders the recent price hike in all levels which have been being continued for the past few years. When I was studying economics at my graduation level about three decades ago, there were concrete practical reasons and solutions for inflation, price hike etc. Do theories of ‘demand and supply’, ‘balance of trade’ or ‘balance of payment’ and other economic parameters fail to monitor financial movements and status at the present globalized scenario? I personally believe, the authorities have been wandering in the dark to fix the inflation, especially after entering in to General Agreement on Tariff and Trade (GATT) liberalization continued by globalization.

As per recent news from Department of Revenue Intelligence DRI, fraudulent software exports are continued - resulting to flow billions worth black money to the country. The government does not have proper measures to book such fraudulent software exports immediately up on committing such crime.

Such fraudulent software exporters enjoy all benefits from various government agencies and acts fraudulently and closes such firms within a short period of time and escape. These fraudulent exporters find software exports as a silk route to flow black money to country, as kick-back arrangements. As you know, the manufacturing and selling cost of any software can not be determined easily. These fraudulent exporters ‘under invoice’ value by mis declaring invoice, softex forms and other required documents. The amount is flowing back to the country in the form of kick-back to middle men which is ‘un accounted’ by Reserve Bank. In other side, by ‘over invoicing’, such fraudulent activities are carried out to claim export benefits from various government agencies.

 


As you know in India, inward and outward remittance are controlled by Reserve Bank. In export trade, the said movements are monitored through GR in normal exports (visible/tangible goods) and SOFTEX forms under software exports. As per Reserve Bank, the foreign inward remittances receivable as per SOFTEX forms have been being short received.


So, Government must take immediate measures to assess the actual value of software from manufacture level to end user level to fix the culprits, as there is no such mechanism at present.


An immediate strong mechanism between countries who have been importing software is essential to fix this ‘phenomenon’ by assessing the value from end user level.


I hope, this article opens the eyes of authorities including policy makers to take appropriate measures.

 

fraudulent sofware exporters flood black money

 

 

The above information is a part of Export Import Online Tutorial


Other posts about Import Export online tutorial

 

Difference between SOFTEX and GR forms
 How to set up an export import firm in India
Consequences of wrong declaration of weight
 79 Major Shipping lines worldwide and their web links
 Transhipment - A redefinition
 How important Packing in export trade ?
 How to start Export Business?
How to get Export Orders?
What are the risks and solutions in Export Business?
Click here to know India Trade Classification(ITC)
Service Tax - Click here to read complete notification under Budget 2014
What is Bank post shipment credit to exporters?
Types of export containers
Measurement of export containers
Exim Policy of India 2015-20
MEIS, Merchandise Exports from India Scheme
SEIS, Service Exports from India Scheme
Merge your Commercial Invoice and Packing List for all your future exports
Export procedures and documentation



Transferability of Bill of Lading

Transhipment - A redefinition

Travelers to India under import duty exemption, Frequently Asked Questions Part 2

Triangular export

 Triangular shipment

Types of Insurance Documents.

 Import General Manifest (IGM)

Importance of Bill of Lading

Introduction to this web site.

 Is Airway bill a documents of title?

 Is Customs House Agents (CHA ) required to be appointed mandatory?

Transferability of Bill of Lading

Transhipment - A redefinition

Travelers to India under import duty exemption, Frequently Asked Questions Part 2

Triangular export

 Triangular shipment

Types of Insurance Documents.

 Is DP terms of payment safe in export business?

Is Letter of Credit LC safe for an Importer?

 Is ON BOARD CERTIFICATE required for LC negotiation

Who can inspect import cargo in US
Who decides shipping carrier on FOB shipments
Who gets benefits from this website?
Who is a ‘Manufacturer’ of excisable goods
Who is a prime banker to check authenticity of letter of credit?
Who is Stevedores
Who receives the amount of auctioned / resold imported unclaimed/un-cleared goods?
Why demurrage/detention waiver period is required at destination for import Transferability of Bill of Lading
Why do carriers balance weight and volume while charging freight amount in Exports?
How does CENVAT Credit work?
Why, best attention while preparing Export Invoice?
Is Letter of Credit LC safe for an Importer?







 

 



Discussion Forum

You can also share your thoughts about this article.
Any one can answer on question posted by Readers