Overview

Units undertaking to export their entire production of goods and services may be set up under the Electronic Hardware Technology Park (EHTP) Scheme. Such units may be engaged in manufacture and services.

The benefits under the EHTP Scheme

An EHTP may import free of duty capital goods, raw materials, components and other related inputs. However these should not be on the negative list of prohibited items in the Foreign Trade Policy. Second hand capital goods may also be imported by EHTP units.

An EHTP unit may bunch the products manufactured by it for sale in the DTA with its entitlement. EHTPs are duty free and bonded areas and customs exemptions are extended accordingly.

An EHTP is exempted from the payment of corporate income tax up to 2010 and also central sales tax reimbursement..

Supplies that are effected in DTAs under global tender conditions and payment in forex are also considered as part of relinquishment of export obligation.

Supplies made by DTAs to an EHTP unit will be regarded as deemed exports and is entitled to benefits under the Foriegn Trade Policy. To get this benefit, goods have to be produced in the country and the supplies have to be made against a letter of authority issued by an officer designated in this behalf of the STPI, Government of India.

An EHTP unit may be setup for both software and hardware in an integrated manner

EHTP unit may purchase indigenous goods free of excise duty

EHTP unit may sell Goods/Services in DTA up to 50% of FOB value of exports, subject to fulfillment of positive NFE as per the policy & payment of applicable duties.

REQUIREMENT FOR APPROVAL.

The following will be the criteria for securing automatic approval from the Director, EHTPI within whose jurisdiction the unit is proposed to be set up.

The Directors of EHTPI have been vested with powers to approve projects irrespective of the value of import of Capital Goods;

The Units meets the requirements of the Customs Authorities in so far as:

It is amenable to bonding by the Customs;

All the manufacturing operations are carried out in the same premises and the proposal does not envisage sending out of the bonded area any raw material or intermediate products for any other manufacturing or processing activity;

However, the unit may be permitted to sub-contract part of their production process through job work by units in Domestic Tariff Area of other EHTP Units including subcontracting abroad on fulfillment of prescribed conditions.

Requirements

An application for setting up a EHTP unit is received in the prescribed format no. 15-F-01 from the potential software exporter.

Application should be duly filled in with signatures and rubber stamp on the each page of the application.

A demand draft in favour of EHTPI within whose jurisdiction the unit falls for Rs.2,500/- on account of Application Fee.

Project Report covering details containing the following details should be filed with the application in form 15-F-01.

 

Company profile

Promoters background

Units Area of Expertise / Services offered

Marketing Strategy / Marketing Arrangements

Manpower plan

Future plans

Financials statement like :

Cost of project & Means of finance

Projected P&L A/c.

Projected Balance Sheet

Projected Cash flow / fund flow statement

Export workings - (As per Transfer pricing guidelines where ever applicable)

 

Memorandum & Articles of Association (in case the applicant is a company) and check whether the “Computer Software/IT enabled services” is one of the objects in the Main Object para of the Memorandum of Association.

Partnership Deed (in case of Partnership Firm)

The Director acknowledges the receipt of the application and a reference number is given to each application.

The applicant is thereafter called to give a presentation on the project that he proposes to undertake with complete profile of the promoters, field of software development, marketing arrangement, business plan etc. in the EHTPI office.

On approval of the project by the Director, letter of permission (in format No. 15-F-02) is issued to the units. The unit is thereafter considered registered under the EHTP Scheme.

On issuance of letter of permission, the EHTP unit have to undertake the following:
 

Execution of legal agreement

Custom bonding

Duration

The duration of the service depends on the work and hence our representative shall fix the time line when you are contacted.

Price

The Consultation charge for this service is Rs. 50000/- Only

Name : Khyati Dhupar

Law Firm Name : V&K Law

Country : India

City : East Delhi

State : DELHI

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