Software Technology Park (STP) Scheme
The STP Scheme is a 100% export-oriented scheme for the development and export of computer software, including export of professional services using communication links or physical media. As a unique scheme, it focuses on one sector, i.e. computer software. The scheme integrates the government concept of 100% Export Oriented Units (EOU) and Export Processing Zones (EPZ) and the concept of Science Parks/Technology Parks, as operating elsewhere in the world. The unique feature of the STP scheme is the provisioning of single-point contact services for member units, enabling them to conduct exports operations at a pace commensurate with international practices.
Scheme Benefits & Highlights
- Approvals are given under single window clearance system.
- A company can set up STP unit anywhere in India.
- Jurisdictional STPI authorities can clear projects costing less than Rs.100 million with Indian Investment.
- 100% foreign equity is permitted.
- All the imports of Hardware & Software in the STP units are completely duty free, import of second-hand capital goods are also permitted.
- Re-export of capital goods is also permitted.
- Simplified Minimum Export Performance norms i.e., "Positive Net Foreign Exchange Earnings".
- Use of computer system for commercial training purposes is permissible subject to the condition that no computer terminals are installed outside the STP premises.
- Sales in the Domestic Tariff Area (DTA) shall be permissible up to 50% of the export in value terms.
- The capital goods purchased from the DTA are entitled for tax benefits.
- Capital invested by foreign entrepreneurs, know-how Fees, royalty, dividend etc., can be freely repatriated after payment of Income Taxes due on them, if any
- The items like computers and computers peripherals can be donated to recognized non-commercial educational institutions, registered charitable hospitals, public libraries, public funded research and development establishments, organizations of Govt. of India, or Govt of a State or Union Territory without payment of any duties after two years of their import.
- 100 Percent Depreciation on Capital Goods over a period of five years.
Electronic Hardware Technology Park (EHTP) Scheme
The EHTP Scheme is a 100% export-oriented scheme for the development and export of electronics hardware.
Units established under EHTP Scheme may carry out the following activities:
- a) Manufacture any item of electronic hardware for exports.
- b) Manufacture of both hardware and software in an integrated manner for exports.
- c) R&D activity, maintenance, testing and calibration services for electronics products meant for exports.
Scheme Benefits and Highlights
- EHTP units may import all types of goods, including capital goods free of duty as defined in the Export Import (EXIM) Policy, required by it for manufacture, services, production and processing or in connection therewith.
- The units shall also be permitted to import goods, including capital goods, free of cost or on loan from clients required for the approved activity.
- EHTM units may procure goods required by them for manufacture, services, production and processing or in connection therewith, duty free, from bonded warehouses in the Domestic Tariff Area set up under the EXIM Policy.
- The EHTP units are required to comply with "Minimum Export Performance" norms i.e., US$1 million or three-times CIF value of imported goods whichever is higher & Positive Net Foreign Exchange Earnings against Export Earnings to be achieved over a period of five years.
Certification of Software Exports
Software companies, which do not wish to avail the benefit of STP scheme, may get registered with STPI for the certification of software exports. After registration, a certificate is issued to the company with the validity of three years during which they can get their software exports certified by STPI. The same may be renewed further for the period of three years at a time.
The Directors of STPs in respect of STP proposals; and the Designated Officers in respect of EHTP proposals accord automatic approval if, (a) the items do not attract compulsory licensing; (b) the location is in conformity with the prescribed parameters; (c) the export obligation laid down in the respective EHTP scheme is fulfilled; (d) the unit is amenable to bonding by the Customs, and 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. All proposals for FDI/NRI/OCB investments in EHTP/STP units are eligible for approval through Automatic Route.
All proposals which do not meet any or all of the parameters for automatic approval need to be considered and approved by the Government. Also, Government approval for FDI/NRI/OCB investments under EHTP/ STP need to be obtained through the FIPB.
EHTP Scheme Notifications
Notification No. 42(N-8)92-97 dated 14 September 1992 issued by Ministry of Commerce. Notification issued by Ministry of Industry dated 22 February 1992 and amendment on 02 March 1993.
Import of Goods
Notification 52/2003--Customs dated 31March 2003.
Notification No. 22/2003-CE & 23/2003-CE dated 31March 2003.
Notification No. 91/93-central excise dated 2 July 1993.
Notification No. 1/95-central excise dated 4 January 1995
List of Companies registered under Statutory Services:- Click Here
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