The circular we are talking about is dated 13th September, 2013 vide Notification No. RBI/2013-14/254 A.P. (DIR Series) Circular No.43, which is effective from October 1, 2013.
Yes, this circular would impact you if you have anything to do with export of software or even export of service from India irrespective of quantum of revenue you generate from export, thus you would like to read this.
What does the circular say?
The Circular requires every exporter of software products or services to submit export invoices for certification to STPI (Software Technology Park of India), being the nodal designated agency irrespective of whatever value.
This is huge negative for IT Startups & SMEs especially who are not registered with STPI, since the STPI would levy certification charges on certification. This will shoot up the overall costs of doing business, apart from handling delays related to obtaining the certification from the STPI.
This new development would also affect existing STPI units, as they would also be required to get their exports of less than 25 K US$ certified by the STPI.
Thus, the erstwhile exemption for an invoice value of US $25000 is history, now even an export invoicing of 1 Dollar would be required to be declared to STPI and certified.