STP scheme

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.

HIGHLIGHTS

	Approvals are given under single window clearance scheme.
	An STP project may be set up anywhere in India.
	Director STP is empowered to approve projects with an investment of Rs. 100 million ($ 2.5 million)
	100% Foreign equity is permitted and are approved under the Automatic Route delegated powers to The Director STPI.
	Simplified Minimum Export Performance norms i.e., US$ 0.25 million or 3 times CIF Value of imported goods whichever is higher & positive Net Foreign Exchange Earnings against Export 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.
	The sales in the Domestic Tariff Area (DTA) shall be permissible upto 50% of the export in value terms.
	STP units are exempted from payment of corporate income tax upto 2010.
	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 be repatriated after payment of Income Taxes due on them if any.
	Domestic projects will not attract any local levies.
	Repartition of foreign currency for payments can be freely done.