An overview of import export code (IEC) registration and its procedure in India.

If you are in the business of importing or exporting goods you would need IEC (Import Export Code) registration. This is basically a 10 digits alphanumeric number code that is provided by the DGFT (Directorate General of Foreign Trade) Department from Ministry of Commerce and Industry, Government of India.

The IEC code number is exactly same as the PAN number of proprietor, partner, director or company. The department will assign the same number as your import export code number.

This IEC registration is totally online based process, everything has to do from a computer, no need to visit to your local office; application, payment, and getting license certificate shall be issued from the concerned Joint Regional Offices through online.

All the businesses that are in the domain of import and export need to get registered for this particular code. The good thing about the IEC is that it comes with lifelong validity. Importers are not allowed to work if they do not have this code and if exporters do not have the code they would not receive the various benefits that they normally get from the DGFT, the Export Promotion Council, and customs.

These days, it has become a lot easier to get IEC registration in Bangalore thanks to the sterling services being provided in this regard by a number of specialized service providers.

This particular code is known by a number of such names as the following:

Importer exporter code
Import export license
Import export number
IEC
IEC license
IE license

The thing with this code is that you can avail it in your name as well as that of the name of your company. If an IEC is issued to you it shall be applicable for all the divisions, factories, units, and branches of your company. Since it is valid for lifetime there is no need for you to renew it at all. This is one more advantage of this code.

Cases where IEC is required

Here are the following situations where import export code (IEC) is necessary for importer or exporter.

Importers need to quote the IEC when they clear the customs.
Banks also need this code from the importers when they have to send money overseas.
As far as exporters are concerned they must provide the IEC when they are sending shipments outside the country.
In case of exporters banks would need the IEC when money is sent to their accounts from overseas.

Who should obtain IEC registration?

If as a business you intend to export or import of goods and services from or to India, then you have to obtain the IEC.

What is the need for the Import Export Certificate?

We have already discussed briefly in the introductory part of this piece as to why you need to have the IEC. However, you still need to know that there are certain situations, where having this code is absolutely important.

If you are an importer and want to clear your shipments from the customs then you would have to furnish it to the customs authorities.
If you are an importer and sending money outside the country through a bank then that bank will need your IEC.
If you are an exporter and sending your shipments outside India then the port customs authorities would need the same.
If as an exporter you get money deposited in your bank account in foreign currency straightaway then your bank would need this code as well.

Documents needed for IEC registration

The following documents have to be provided in case it is a business owner, partner, proprietor, or director applying for the IEC:

Copy of PAN (permanent account number) card
In case it is a partnership a copy of the partnership deed
Passport size photograph
In case it is a company self declaration or board resolution
Copy of voter identity card or Aadhaar Card
In case it is an individual owner a telephone bill in his name
In case it is a partnership a letter of authorization
Cancelled cheque in case it is an individual
In case it is a company a letter of authority from other directors on the official letterhead

The following documents have to be provided in case it is a company applying for the IEC:

Copy of PAN card of firm or company
Telephone bill in the business’ name
In case it is an owned property copy of papers of property
In case it is a partnership copy of service tax returns
In case it is a rented property copy of rent agreement
In case it is a company the certificate of incorporation
NOC (no objection certificate) from the landlord
Bank statement of firm or company
Cancelled cheque of firm
In case it is a company AOA (articles of association) and MOA (memorandum of association)
Electricity or water bill for the place of business
In case it is a company a letter head

How to apply for IEC registration in Bangalore?

These days, the Indian government has made it easier for people to file for IEC registration online. The process is a fairly lengthy one and needs around 3-7 days to be completed. The first step is to prepare the application. The application form in this case would be the Aayaat Niryaat Form (ANF) 2A. The application in this case has to be made to the DGFT in the state or region where your registered office would be based.

The second step in this case is of processing the application. When you submit ANF 2A you would have to focus on some critical details such as the following:

Details of the business as well as its proprietors, partners, and directors
Details of bank account
Bank certificate

These in fact are the basic requirements in this case. When you submit the form you also need to make sure that you submit all the necessary documents as well. You would have to provide your digital signature in these cases as well.

Once you are done with the process of application you would need to file it with the appropriate DGFT. You would also need to pay an application fee in this particular regard. At times, your application could be sent back by the IEC department for changes or corrections. In that case you would have to provide a reply within a space of 15 days to the DGFT.

After the department verifies your application totally you would be issued an IEC by the DGFT. This code would be provided in hard copy as well as soft copy. The soft copy would be sent through email and you can get started with your import export business straightaway with that one.

Documents file type need to upload during IE code application

Scanned or soft copy of following documents is required to apply for IE code registration. Only 2 format is acceptable, i.e. GIF and PDF. See the file format type of documents:

Photograph, PAN Card and Passport – GIF format
Sale Deed, Bank Certificate, Company Registration Certificate, MOA & AOA, Partnership Deed and Declaration Document – PDF format
Voter ID, Aadhaar Card, Driving License and Cancelled Cheque – GIF/PDF

What are the benefits of IEC registration?

The benefits of IEC registration may be explained as below:

With the help of IEC you would be expand your business as much as you can and wish to. You would be able to take your products and services to various markets of the world and thus grow your business.
The likes DGFT, Customs, and the Export Promotion Council offer a number of benefits to companies that have IEC registration.
When you have an IEC you would not need to file any return. Once it has been allotted to you there is nothing that you need to do on your part to make sure that it stays valid. Even if you go for export transactions you would not have to file any returns with the DGFT
These days, it has become really easy to obtain the IEC from the DGFT. You do not need to furnish any proof of import or export in order to procure the same.
Since the IEC is effective for a lifetime there is no need to renew it. Once you have received the same you can use it for all types of import and export transactions.

An Overview on GST Registration

This is the day and age of the GST (goods and services tax) regime and as such any business that is earning in excess of INR 40 lakh in India has to register for GST. In case of the northeast and hill states this comes down to INR 20 lakh. The requirement here is the same as a normal person who is liable to pay taxes as well. The process for registering for this tax is also known as GST registration.

Under normal circumstances, GST registration takes around 2 to 6 working days. However, there are certain companies they are providing GST registration services in Bangalore and can make it happen in some simple and easy steps. If you need our help and support, we would always be happy to assist you.

It needs to be mentioned in this particular context that GST has overtaken all other kinds of business taxes such as sales tax, excise duty, and service tax, to name a few. It is always advisable to register for GST even if your income is lower than the prescribed threshold.

There are certain reasons for such a suggestion as well. Without GST registration you would not get any tax refund, which can be quite a useful amount at times for your business. Without GST you would also be unable to sell the products or goods outside your state.

Who has to Obtain GST Registration?

The following entities need to register for GST:

Individuals who had registered under the laws that were applicable before GST such as excise, service tax, and VAT
Businesses that are earning more than INR 40 lakh a year – in case of businesses in the northeastern states, Jammu and Kashmir, Himachal Pradesh, and Uttarakhand this limit is at INR 20 lakh
Casual taxable individuals and nonresident taxable individuals
Agents of suppliers and input service distributors
People paying tax as per the reverse charge mechanism
People who supply through ecommerce aggregators
All ecommerce aggregators – this includes the likes of Flipkart, Amazon, and Ola
Individuals who are supplying online database access or retrieval services and information from outside India to people in India with the exception of a registered taxable individual
Businesses that have many branches across India or operate in various different verticals in one state
Businesses that supply to other states
Businesses that have to deduct taxes at source

It needs to be kept in mind that the process of GST registration is state specific and based on PAN. In case you are a supplier you would have to register in each state and union territory where you are operating.

What are the Benefits of GST Registration?

If you register for GST you would be eligible to receive a number of benefits.

See, the following advantages you can get under GST:

You will legally certified to do business as a supplier of goods and/or services.
You could do proper accounting of received and paid taxes which can be used GST payment.
You would have the right to collect taxes from your buyers and clients, and then pass on the credit of the taxes that they have paid to them.
With GST registration you would have the right to claim input tax credit of the taxes that you have paid to your suppliers. You can also make use of this particular facility for taxes that are yet to be paid.
With GST registration you would also be able to allow for input tax credit to flow smoothly from the suppliers to the recipients, and that too at the national level.

What are the Documents Needed for GST Registration?

The following documents are needed in order to register GST:

PAN (permanent account number) of applicants such as business owners, partners, or directors
Address proof for the place of business – this includes the likes of electricity bill, telephone bills, rent agreement, and letter of consent
Aadhaar card of owners, directors, or partners
Bank account statement or cancelled cheque – this also includes the Indian Financial System Code details and a valid bank account number in India
Proof of business registration such as incorporation certificate, memorandum of association, and article of association
Digital signature
Identity and address proof of promoters or directors along with photographs
Letter of authorization or board resolution for authorized signatory, who should at least be an Indian resident – this person should have valid details including PAN
Valid Indian mobile number
Valid email address
Jurisdiction details

GST Registration Process

The application form of GST registration is covered by 2 parts as Part-A and Part-B. Part A registration belongs to getting up to Temporary Reference Number (TRN) and Part B belongs to the afterward work of Part A.

To get the registration under GST, the applicant has to follow the 7 steps procedure:

Go to Government’s GST Portal site and look for New Registration under the Registration tab of Service menu (Service > Registration > New Registration).
Select the type of taxpayer is to be registered, enter details like State / UT, District, Business Name, PAN, Email and Mobile Number in Part-A, then click on PROCEED button, you will receive OTP for both Mobile and Email for verification purpose. After verification, you will get a TRN acknowledgement information on your mobile and email.
Then you have to fill the Part-B Form of GST registration by selecting the Temporary Reference Number (TRN) option, enter TRN and captch then proceeding with Mobile and Email OTP verification.
In fourth step, it will direct you to the next page where it holds 10 menus regarding to your business information. This is the major step, here you have to click on one by one menu and fill the business details regarding to them for each and attach all the required documents. Verify all the particulars and submit the application.

Remember that you have to finish Part-B registration within 15 days, after getting your TRN number. It will be shown to you in yellow background message on top of the window, you could be noticed it.

In verification step, you have to verify with DSC only for company/ LLP. For other organization Electronic Verification Code (EVC) is required; if you have DSC, could go for that and code will come to your mobile and email ID, just you need to verify it.
After verification, you will be getting an ARN (Application Reference Number) to your mobile and email id in 15 minutes. So you can check latter your application status through ARN.
To track application status, go to Service tab, then Registration then click on Track Application Status of GST Portal and enter your ARN, you will find your progress (Service > Registration > Track Application Status).

Procedure to Register GST Through Government Portal

To register for GST in Bangalore or any other cities in India; you have to know, understand and follow the above process. So we have summarized the steps here below:

The first thing is that you need to do in this case is to visit the official portal for this purpose and check out the registration tab, which we’ve mentioned in above (GST Registration Process) paragraph; refer that. Over there you would have to fill out the details such as the following:

Type of taxpayer
State / UT
District
Business name
PAN
Email ID
Mobile number

This needs to be done in Part A of form GST REG-01. You would get this on your email and mobile following an OTP (one time password) verification. Once you have done this you would be provided a reference number on a temporary basis i.e. Temporary Reference Number (TRN).

After this you would need to fill up Part B of the same form by selecting the Temporary Reference Number (TRN) option. It needs to be signed either by EVC or DSC. In this case you would also need to upload certain documents along with the signed and filled up form. The type of documents would be specified to you on the basis of the kind of business that you are in.

After this you would GST REG-02, which is basically an acknowledgement.

If you get GST REG-03, where the authorities want more information from you, you would have to visit the department physically and provide clarifications. You may also have to produce certain documents in this case as well. All this needs to be done in the shape of GST REG-04. In case there are any errors it is possible that your application may be rejected by the office as well. You will come to know this in the shape of GST REG-05.

As and when your application is properly approved you would be provided a certificate of registration in the shape of GST REG-06. However, the department will only issue it following verification. As you can see, the process is a quite time consuming one and there are a lot of details to be taken care of as well. This is where the private service providers can be of great help for you.

What is GSTIN?

GSTIN can be called as the GST Identification Number, from this number one business or organization can be recognized as a GST holder. It is a 15 digits number. In this case the first couple of numbers represent the code of state. Normally, 01 represents Jammu and Kashmir, 03 represents Punjab, and 02 represents Himachal Pradesh. The next 10 digits normally represent the PAN of the GSTIN owner.

What are the Penalties for not Registering under GST?

In case of certain businesses it is absolutely mandatory to register for GST. In case if such a business carries on doing business without registering for GST it would be regarded as a contravention of said laws. In such cases the guilty party would be levied with heavy fines.

In case you are not paying the requisite tax or have made inadequate payments you would have to pay 10 per cent of your tax amount as fine. However, this amount cannot be lower than INR 10,000. However, if you have deliberately avoided paying taxes this amount could go up to 100 per cent of your tax amount.

Month: November 2018

IEC Registration Online in Bangalore: Documents, Process & Benefits