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1.
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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. |
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2.
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Who can become a STP and how?
· An Indian company
· A Subsidiary of a Foreign Company
· A branch office of 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 Software
Technology Parks of India.
· The application should be along with the details
of the Software Project in terms of strengths, area of expertise,
marketing arrangement, business plans, means of finance.
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3.
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Should
I need to submit any project proposal to STPI?
Yes, along with the STP application a detailed project proposal/report
covering the details on area of expertise core competency, marketing
arrangement, business plans means of finance needs to be submitted. |
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4.
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What kind
of investments is allowed?
100% Foreign Direct Investment, NRI-Repatriable, NRI-Non Repatriable,
Resident Holding and combination thereof is allowed |
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5.
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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 |
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6.
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What is
bonded warehouse?
Private Bonded Warehouse is a warehouse declared by Customs
Authorities for carry on Export Processing under STP Scheme. |
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7.
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Can I
operate from different location?
Yes operation under STP Scheme can be carried from different
location. |
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8.
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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. |
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9.
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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. |
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10.
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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. |
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11.
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Can I expand
my operation whenever the necessary arises?
A unit operating under STP scheme can always expand its operations
to new location. |
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12.
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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. |
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13.
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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.
I1. 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. |
