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1.What is STP and what is the advantage by becoming a STP unit?

  • The Software Technology Park (STP) scheme is a 100% export oriented scheme for the development and export of computer software using data communication links or in the form of physical media including the export of professional services.

    • The major attraction of this scheme is single point contact service to the STP units.

    • STP units are exempted from payment of corporate income tax upto 2010.

    • All the imports of Hardware & Software in the STP units are completely duty free.

    • Import of second hand capital goods is also permitted.

2.Who can become a STP and how?

  • An Indian company A Subsidiary of a Foreign Company

  • A branch office of a Foreign Company

  • In order to become certified member unit under STP scheme, approval from the competent authority is required. The following steps are involved for obtaining approval:

  • An application in the prescribed format for registering and establishing a STP unit is to be submitted to the local office of the Software Technology Parks of India.

  • The application should have the details of the Software Project in terms of strengths, area of expertise, marketing arrangement, business plans, means of finance.

3.Should I need to submit any project proposal to STPI?

  • Yes, along with the STP application form, a detailed project proposal/report has to be enclosed. The report must include details on the area of expertise, core competency, marketing arrangement, business plans means of finance etc.

4.What kind of investments is allowed?

  • 100% Foreign Direct Investment, NRI-Repatriable, NRI-Non Repatriable, Resident Holding and combination thereof is allowed

5.What is the minimum time frame it takes to become a STP?

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

  • Type of investment Authority for Approval Time

  • 100% Resident Holding Director,STPI One Week

  • 100% Foreign Direct Investment FIPB 4 to 6 Weeks

6.What is bonded warehouse?

  • Private Bonded Warehouse is a warehouse declared by the Customs Authorities for carring out 100% Export oriented business under STP Scheme.

7.Can I operate from different location?

  • Yes , under STP Scheme, the export oriented operation can be carried out from different locations.

8.Being a STP unit can I do domestic projects?

  • Yes, subject to meeting the Minimum Export Performance STP unit can do business in the DTA.

9.What is Capital Goods (CG)?

  • Capital Goods is the Hardware and infrastructure the unit is envisaging to import to set up the STP for a value.

10. What is process followed after I become a STP unit?

  • Subsequent to the approval granted by STPI, the approved unit will be signing a legal agreement, with a list of capital goods and Indigenous purchases for attestation to obtain Private Bonded Warehouse License from Customs Department.

11.Can I expand my operation whenever the necessary arises?

  • A unit operating under STP scheme can always expand its operations to new location.

12.What is IE Code?

  • Importer Exporter code is a unique code number issued/required to every Importer-Exporter. An IE code be obtained by the companies operating under STPI by filling necessary application.

13.What is DTA?

  • DTA a.k.a. Domestic Tariff Area. The units operating under STP Scheme can access Domestic Tariff Area (DTA) up to the level of 50% of the worth of software exported in value terms.

14.What is import and how can I do the same under STP?

  • A unit operating under STP Scheme can import capital goods (i.e., Computer Hardware & Software and basic infrastructure support) without paying any Customs Duty, as may be levied to the importer in normal cases.



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