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iv The details of bank account opened in the overseas country should be promptl y reported to authorized dealer.

14 Shri Padamchand Khincha appeared as intervener on behalf of M/s Changepond Technologies Pvt Ltd and his submissions are as follows:

Expenditure on technical services are to be excluded from export turnover. There is difference between computer Software and technical services. Sec 80 HHE deals with software industries.

Sub-sec (1) of the said Section considers two t ypes (i) computer software and technical services. Thus there is distinction between computer software and technical services. Before amendment computer software meant computer programme. Circular No. 621 dated 19.12.91(195 ITR (St) 154 at Para No. 34.2 mentions as under:

"The tax concession will be available with regard to profits from export of software not onl y through magnetic media or on paper but also through satellite data link and consultancy delivered at the location of foreign client outside India.

6 The Government's policy on tax incentive to software export is reflected in the provisions of section 80 HHE introduced in 1991. Under this provision, technical services provided outside India, for the development or production of computer software, are included for the purpose of the tax incentive.

7 Similarl y, for the purpose of section 10A or 10B, as long as a unit in the EPZ/EOU/STP itself produces computer programmes and export them, it should not matter whether the programme is actuall y written within the premises of the unit. It is, accordingl y clarified that, where a unit in the EPZ/EOU/STP develops software sur place, that is, at the client's site abroad, such unit should not be denied the tax holiday under Section 10A or 10B on the ground that it was prepared on site, as long as the software is a product of the unit, i.e., it is produced b y the unit.