STPI/EHTP/SEZ
We assist in the process and procedures of registration with Software Technological Park of India and Electronic Hardware Technology Park. The process of registration requires preparation of registration application and related documents, coordinating with the authorities and arranging for the necessary custom bonding.
Policy and Benefits
Initiated by Government of India, Software Technology Park [STP] Schemeis a 100% export oriented scheme for undertaking software development for export using data communication links or in the form of physical media including export of professional services.
The motive of the scheme is to contribute to the prosperity of the national economy through promotion of exports from the Software & services Industry by facilitating all the statutory services of the Govt., strengthening the Communication Infrastructure and by increasing the quality consciousness in the Industry.
The benefits under the STPI
- Single Window clearance system mechanism. All clearances are given under single window.
- A STPI project may be set up anywhere in India at place stipulated by the government for this purpose.
- Jurisdictional Directors have the powers to approve import of capital goods (net of taxes) not more than US$ 20 million.
- 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 also permitted.
- Re-Export of capital goods are permitted.
- Simplified Minimum Export Performance norms i.e. (STP & EHTP scheme)
- Net Foreign Exchange Earnings to be positive.
- Domestic purchases by STP unit are eligible for the benefit of deemed exports to the equipment suppliers.
- Use of computer system for commercial training purpose is permissible subject to the condition that no computer terminals are installed outside the STP premises.
- The sales in the Domestic Tariff Area [DTA] shall be permissible upto 50% of the export in value terms.
- The capital goods purchased from the Domestic Tariff Area [DTA] are entitled for the benefits like levy of Excise Duty & Reimbursement of Central Sales Tax [CST].
- Capital invested by Foreign Entrepreneurs Know - How Fees, Royalty, Dividend etc., can freely repatriated after payment of Income Taxes due on them if any.
- Depreciation on Capital Goods above 90% over a period of five years and also the accelerated rate of 7% per quarter during the first two years subject to an overall limit of 70% in the first three years.
- Call center permitted under the STPI scheme.
- All Services as listed in appx.54 of hand book of procedures (EXIM) are eligible for facility of STP scheme
- Service providers eligible for recognition as 'Service Export House', International Service Export House' or International Star service House'
Statutory Compliance for STP Units
Important statutory compliance for STP units are listed below as reference
Each of such unit is required to maintain separate accounts for its operations. Separate annual balance sheet will have to be made for each such unit which would be become a part of the main balance sheet of the company. For maintaining separate accounts the following will have to be done:
- Maintenance of Separate Cash & Bank book and corresponding vouchers.
- Maintenance of sales invoices.
- Maintenance of Fixed Assets register.
- Maintenance of Foreign Inward Remittance Certificate file (FIRC's) & Bank Realisation Certificate file where the original of the FIRC's and BRCs are kept
- Maintenance of contract file, where copies of contracts received from buyers are maintained.
- Preparation of yearly balance sheet for the unit which would ultimately become a part of the balance sheet of the company.
Each unit is required to maintain separate bank accounts for its operations. The units is free to have as many bank accounts as it desires but shall have to designate a single branch of bank whom all export documents will be submitted. In other words the work of handling of all shipping documents and realisation of export proceeds will have to be entrusted to this designated bank branch.
