FREQUENTLY ASKED QUESTIONS

STP Scheme
Q1. What is STP Scheme ?

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.

Q2. What are the services provided by STPI under STP scheme?

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The major attraction of STP scheme is a single point contact service to the STP unit:

  • Approval as a STP unit
  • Approval for enhancement of capital goods
  • Issuance of green card
  • Guidance for custom bonding
  • Certification of imports
  • Certification of exports
  • Permission for excise exemption
  • Permission for DTA sales
  • Permission for re-export
  • No objection certificate for change of name
  • No objection certificate for change of location
  • CST reimbursement
Q3. What are the charges for STP registration?

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Application processing fees and three years advance annual service charges considering your projected export turnover.

Application processing fees :Rs. 2500.00
Service charges on the basis of projected exports :

Below Rs. 25 lakhs per annum

Rs. 8,000.00 per annum

Rs. 25 to 50 lakhs per annum

Rs. 16,000.00 per annum

Rs. 50 lakhs to Rs. 3 crores per annum

Rs. 55,000.00 per annum

Rs. 3 to 10 crores per annum

Rs. 1,10,000.00 per annum

Rs. 10 to 25 crores per annum

Rs. 2,25,000.00 per annum

Rs. 25 to 50 crores per annum

Rs. 2,50,000.00 per annum

Rs. 50 to 100 crores per annum

Rs. 3,50,000.00 per annum

Rs. 100 to 500 crores per annum

Rs. 5,75,000.00 per annum

Rs. 500 to 1000 crores per annum

Rs. 6,00,000.00 per annum

Above Rs. 1000 crores per annum

Rs. 6,50,000.00 per annum

Q4. Who can become a STP member and how?

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Following can become a STP member :

  • An Indian company
  • A subsidiary of foreign company
  • A branch office of foreign company
  • In order to become a certified member unit under STP scheme, approval from the competent authority i.e. Director, STPI is required. Following documents are required for obtaining approval:
  • Export Obligation
  • 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)
  • Bank Certificate

After approval procedure, STP unit has to sign Export Obligation Agreement under STPI and approach the Assistant Commissioner of Customs for bonding your office area under Section 58 & 65 of Customs Act 1962.

Q5. What are the obligations on units under the STP Scheme?

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The obligations on units under the STP Scheme:

  • The Development/production shall be carried on in customs bonded area.
  • Regular renewal of customs bonding licence.
  • Commencement of operations within the gestation period.
  • Intimation to STPI about the commencement of operations.
  • Fulfillment of obligations as per the Foriegn Trade Policy.
  • Realisation of amounts due in stipulated period.
  • For external borrowings,obtain permissions from Ministry of Finance.
  • Maintain separate accounts for the operations of STP unit.
  • Maintain prescribed records and documents.
  • Obtain Export certification.
  • Submit Monthly,Quarterly and Annual reports.
  • Payment of duties on debonding of STP unit.
Q6. What is the advantage of becoming a STP unit?

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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.
Q7. What is the Investment criteria?

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Only projects having a minimum investment of Rs. 1 crore in plant and machinery shall be considered for establishment as EOUs under the scheme.

Q8. What kind of investment is allowed?

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100% foreign direct investment, NRI-repatriable, NRI-non repatriable, resident holding and combination thereof allowed.

Q9. Can I set up the operations in my own premises?

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Software industry being a non-polluting industry can be set up in any location. 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.

Q10. If we take some location on rental basis then can we change the location subsequently?

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Surely the location can be changed but with prior approval from STPI.

Q11. What is the minimum time frame required to become a STP?

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Depending on the pattern of investment the following time frame is involved:

Type of investment

Authority for approval

Time

100% resident holding and 100% FDI under automatic route of RBI

Director, STPI

One Week

Q12. How many companies are exporting under the STP scheme?

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There are 1200 plus units registered from Noida under the STP scheme.

Q13. What are the activities covered under the STP scheme?

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The obligations on units under the STP Scheme:

  • Development of IT Software/ Electronic Hardware for Exports.
  • Rendering IT enabled services for software exports.
  • Execution of Onsite Consultancy projects at customer site abroad.
Q14. Being a STP unit, can I do domestic project?

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Yes, STP unit can do the domestic business subject to 50% of foreign exchange earned with prior permission of Director of STPI.

Q15. Is custom bonding of the STP unit mandatory?

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Yes, custom bonding of the STP unit is mandatory.

Q16. Can we enhance our approved capital goods limit?

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Yes, Director-STPI can approve the capital goods limit.

Q17. Can we change our company name after STP approval?

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Yes, change of company name is possible after STP approval. Certificate from Registrar of Companies needs to be submitted to STPI office.

Q18. Can we change our STP location after approval?

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Yes.

Q19. Does STPI help in finding software professionals or else what are agencies who can help?

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The STPI does not have an infrastructure to formally help the upcoming STP units. However, through consultants and advertisement in newspapers the required kind of manpower can be found.

Q20. What happens if a unit is unable to succeed after trying for a year or so?

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The unit can cease to become STP member at any moment of time subject to payment of customs and excise duty on the imported and indigenous equipments and the penalty imposed by the appropriate authority under the Foreign Trade Regulatory Act 1992 for non-fulfillment of conditions of approval.

Q21. Is it mandatory to get the company registered in India?

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Yes, it is mandatory to get the company registered in India with the Registrar of Companies under the Companies Act 1956.

Q22. Can I convert equipment already imported on loan or free of cost into the equity of the company at a later date if required?

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There is a provision by which with the approval of RBI the capital goods already imported can be converted into the foreign equity of company.

Q23. Can we take CST reimbursement as a STP unit?

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Yes, CST reimbursement can be taken as a STP unit against 'C' Form only.

Q24. Entities who can set up a unit?

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Entities who can set up a unit are :

      • Central Government Undertaking.
      • State Government Undertaking.
      • State Industrial Development Investment Corporation.
      • Cooperative Undertaking.
      • Joint Sector Undertaking Joint Sector Undertaking.
      • Assisted Sector Undertaking.
      • Private Sector Undertaking.
      • Individual Promoter/Partnership.
      • Conversion from DTA Unit to STP.
      • Conversion from EoU to STP.

 

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IPLC (International Private leased line)
Q25. What is IPLC?

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An IPLC (international private leased circuit) is a point-to-point private line used by an organization to communicate between offices that are geographically dispersed throughout the world. International Private Leased Circuits (IPLC) are the basic building blocks for international communications, providing raw bandwidth for global communications networks. These point-to-point private line services are dedicated to the customer's exclusive use providing quality reliable digital transmission seamlessly integrating data, voice and imaging services. A wide variety of applications are supported by IPLC including internet access, LAN-to-LAN connectivity, telemedicine, video and teleconferencing.

Q26. What can IPLC be used for?

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An IPLC can be used for Internet access, business data exchange, video conferencing, and any other form of telecommunication. IPLCs enable customers with a global reach into over 200 countries to serve their international requirements supported by an extensive range of bandwidth options underlined by a predictable cost structure

Q27. IPLC in STPI noida?

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STPI NOIDA has IPLC bandwidth of 45 MB.Circuits can support data rates of E3 AND Above. Our strategic alliances with global service providers make possible OSS for order and billing as well as end-to-end link monitoring with a strong NMC.

Q28. What is OSS?

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In the past, an organization had to contact each carrier in each country to order the two circuits, which included two separate invoices. OSS consolidates the billing for both circuits into a single invoice, handles all currency issues, and allows the organization to report all problems from either circuit to one carrier. To simplify IPLC ordering and billing, a concept called One Stop Shopping (OSS) was developed. OSS allows an organization to place a single order with a single carrier for two private leased circuits for two offices in two different countries.

OSS stands for One Stop Shopping, a concept developed to facilitate the provision of the IPLCs at the most convenient and efficient way desired by the Industrial, Commercial and Governmental organizations throughout the world.

IPLC OSS was designed to improve the efficiency of customers’ global operations while minimizing their costs on planning, ordering, implementation, and bill payments.

Before OSS, a Global corporation requiring to establish a private leased circuit between two of its offices in two different countries would place an order at both ends separately, wait for the two carriers to tell them when the circuit would be ready and pay two separate invoices from the two carriers. Now, OSS enables the customers to save their resources for use on their own business while leaving the implementation of their telecommunication requirements to a single point of contact at the Telecom Operator that they know and do business with all the time. In the global business arena, the regional or global headquarters are able to plan, order and get their global networks implemented through a single point of contact from their own countries. Issues related to currency conversion and value added taxes are simplified through the process of One Stop Shopping – Single End Billing.

Features available through OSS include include:

  • Single-End Ordering: allows the customer to order both halves of a circuit through a single carrier.
  • Single-End Billing: consolidates the billing for both half circuits into a single invoice.
  • Single-End Fault Reporting: allows the customer to report faults resulting from either half circuit to the Coordinating Carrier

When entering an OSS arrangement for IPLC service, a customer chooses a carrier to serve as the Coordinating Carrier for the OSS Services required. The Coordinating Carrier provides a range of services to the customer which may include providing price quotations, prospective installation dates, order forms, contracts, monthly invoices, and fault reporting. By consolidating service through a single carrier, customers are able to manage services for both half circuits through a single location. This is a key benefit to customers that provide management of global telecommunications network through a single location. OSS eliminates the need for a customer's distant-end remote locations to be responsible for signing contracts, ordering services, and paying bills for in-country circuits.

Into many points in the Asia Pacific region including Australia, New Zealand, Indonesia, Japan, China, Korea, and the Philippines.

Q29. Does STPI NOIDA provide OSS?

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Yes, STPI NOIDA provides OSS

 

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Customer Care
Q30. What is the average time of fault recovery?

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Less than 2hours. One of our strengths is an extremely prompt and efficient fault recovery system that ensures fail safe operations.

Q31. What is the Fault recovery mechanism at STPI NOIDA?

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State of the art Fault recovery management system which is soon going to be integrated with IVRS. Hot redundancy inbuilt at all points of failure.

Q32. Is there a helpline, which one can call in case of circuit failure?

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Help desk is working round the clock with highly trained and experienced technical workforce. You can call the following numbers:

0120-2470441,444 or e-mail your complaint to techsupport@noida.stpi.in

We have well defined escalation levels going up to Director. We believe in putting our customer ahead of everything else.

 

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Quality of Service
Q33. Is STPI Noida ISO certified?

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STPI noida was the first to be ISO 9001:2000 certified for all its operations.

Q34. What is the uptime?

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The average uptime for the last one year has been 99.6%. STPI has a proven track record of excellent quality and reliable services. We have 24 hours manned pop at JNU and Gurgaon.

Q35. What is the level of commitment for the services STPI provides?

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STPI has a comprehensive Service Level Agreement (SLA) covering uptime, latency and throughput. It is a note stating our commitment to meet the promised level of uptime, throughput and latency.

 

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