Alt text

Software Technology Park Scheme

Software Technology Parks of India Under Ministry of Electronics and Information Technology

The Software Technology Park (STP) Scheme is a 100 percent Export Oriented Scheme for the development and export of computer software, including export of professional services using communication links or physical media

This scheme is unique in its nature as it focuses on one product / sector, i.e. computer software. The scheme integrates the government concept of 100 percent Export Oriented Units (EOU) and Export Processing Zones (EPZ) and the concept of Science Parks / Technology Parks, as operating elsewhere in the world

Scheme Benefits & Highlights

Approvals are given under single window clearance scheme.                                                     
# A company can set up STP unit anywhere in India                                                                      
# Jurisdictional STPI authorities clear projects costing less than Rs.100 million with Indian Investment                                                                                                             
# 100 Percent 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                                                                   
# Re-Export of capital goods is also permitted                                                                       
# Simplified Minimum Export Performance norms i.e. "Positive Net Foreign Exchange 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 up to 50 Percent of the export in value terms.                                                                                                                                                                                                                                         
# STP units are exempted from payment of corporate income tax up to 2010.                                                                                                                                                    
# The capital goods purchased from the Domestic Tariff Area (DTA) are entitled for benefits like exemption of excise Duty & reimbursement of Central Sales Tax (CST)                                                                                                                                                                                                                                                    
# Capital invested by Foreign Entrepreneurs, Know-How Fees, Royalty, Dividend etc.,  can be freely repatriated after payment of Income Taxes due on them                                                                                                                                                     
# The items like computers and computers peripherals can be donated to recognized non-commercial educational institutions, registered charitable hospitals, public libraries, public funded research and development establishments, organizations of Govt. of India, or Govt of a State or Union Territory without payment of any duties after two years of their import                                                                                                                                                                        
# 100 Percent Depreciation on Capital Goods over a period of five years.

  • An Indian company
  • A subsidiary of foreign company
  • A branch office of foreign company
Membership Procedures

In order to become a certified member unit under STP scheme, approval from the competent authority i.e. Director, STPI-Mumbai is required. Following documents are required for obtaining approval :                                                                                               

  • Gist of application
  • Application in triplicate
  • Project report
  • Board resolution
  • Memorandum or Articles of association
  • Export order / contract or MOU
  • List of Directors
  • Importer - Exporter code number
  • Proof of STP location premises ( e.g. Leave and licence)
  • Valid data communication proof (e.g. Receipt of payment, service acceptance letter)
Application Processing Fees

Application processing fees and three years advance annual service charges considering your pojected export turnover.

Application processing fees :Rs. 2500.00

Service charges on the basis of projected exports :                                                                                                                          

Below Rs. 50 lakhs per annum Rs. 15000.00 per annum
Rs. 50 lakhs to Rs. 3 crores per annum Rs. 50000.00 per annum
Above Rs. 3 crores per annum Rs. 100000.00 per annum

Related Blogs

Connect With Mentors