Overview

Software Technology Parks (STPs)

The Software Technology Park (STP) scheme is for providing facilities to IT industry for undertaking software development and IT enabled services for 100% exports using data communication links in the form of physical exports including export of professional services. Individual units can also be allowed to do business in the domestic (Indian) market up to 50% of the exports. STP units can also undertake commercial training. STP units also regulate the IT business through licensing, acting as a link between the customer and Government authorities and agencies. Under the scheme, IT industries are provided certain concession in duties, levies and taxes.

Following can become a STP member :

An Indian company

A subsidiary of foreign company

A branch office of foreign company

STP units can avail of following advantages under STP scheme :

Custom duty exemption

Excise duty exemption

Central Sales Tax reimbursement

Corporate tax exemption on 90% export turnover as per Section 10A of Income Tax Act.

Sales in Domestic Tariff Area (DTA) upto 50% of the FOB value of exports permissible.

Bank certificate

Software industry being a non-polluting industry can be set up in any location by taking approval. The STP unit can be an individual unit by itself or it can be one such unit located in an area designated as STP complex. Surely the location can be changed but with prior approval from STPI.

The obligations on units under the STP Scheme are

Development of IT Software/ Electronic Hardware for Exports.

Rendering IT enabled services for software exports.

Execution of Onsite Consultancy projects at customer site abroad.

Entities who can set up a unit are :

Central Government Undertaking.

State Government Undertaking.

State Industrial Development Investment Corporation.

Cooperative Undertaking.

Joint Sector Undertaking.

Assisted Sector Undertaking.

Private Sector Undertaking.

Individual Promoter/Partnership.

Conversion from DTA Unit to STP.

Conversion from EoU to STP.

Requirements

In order to become a certified member unit under STP scheme, approval from the competent authority i.e. Director, STPI-Mumbai is required.

Following documents are required for obtaining approval :

    Gist of application
    Application in triplicate
    Project report
    Board resolution
    Memorandum or Articles of association
    Export order / contract or MOU
    List of Directors
    Importer - Exporter code number
    Proof of STP location premises ( e.g. Leave and licence)
    Valid data communication proof (e.g. Receipt of payment, service acceptance letter)

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. 25000/- Only

Name : Sharat Chandra Arukonda

Law Firm Name : Individual

Country : India

City : Hyderabad

State : TELANGANA

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