Software Technology Park [STP] Scheme is 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 society was set up 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 STP & EHTP Scheme
Approvals are given under single window clearance
mechanism.
An STP project may be set up any where in India.
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.
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 Complaince for STP Units
Important statutory
compliance for STP units are listed below as reference
Accounts :
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.
Banking
:
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.
