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


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