STP scheme is a 100% Export Oriented Scheme (100% EoU) for the development and export of computer software using data communication links or in the form of physical media including export of professional services. STP can be a virtual software development unit or can be infrastructural complex set-up for providing necessary support for the STP units.

H  I  G  H  L  I  G  H  T  S

• 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.

• All the imports of Hardware & Software in the STP units are completely duty free. Import of second hand capital goods are also permitted.

• 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.

| Detailed Scheme |