|
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 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.
|
|
3.
|
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. |
|
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
Customs Authorities for carry on Export Processing under
STP Scheme. |
|
7.
|
Can
I operate from different location?
Yes operation under STP Scheme can be carried from different
location. |
|
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.
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. |
