CONCEPT OF SOFTWARE TECHNOLOGY PARK Software technology parks

CONCEPT OF SOFTWARE TECHNOLOGY PARK Software technology parks are a cluster of software export units, in which software technology companies develop and export computer software and other professional services. In India, software technology parks are managed by the Software Technology Parks of India, a government agency. Software Technology Parks is a society set up by the Ministry of Electronics and Information Technology with the objective of encouraging, promoting and boosting the software Exports from India.

OBJECTIVES OF SOFTWARE TECHNOLOGY PARKS OF INDIA (a) To promote the development and export of software and software services. (b) To provide statutory and other promotional services to the exporters by implementing Software Technology Parks (S. T. P)/ Electronics and Hardware Technology Parks (E. H. T. P) Schemes. (c) To provide data communication services including value added services to IT / IT enabled Services (I. T. E. S) related industries (d) To promote micro, small and medium entrepreneurs by creating conducive environment for entrepreneurship in the field of IT/ITES.

SOFTWARE TECHNOLOGY PARK SCHEME Software Technology Park Scheme focuses on one 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 in the world. provisioning of single-point contact services for member units, enabling them to conduct exports operations at a pace commensurate with international practices. 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.

SOFTWARE TECHNOLOGY PARK SCHEME Software Technology Park Scheme as under: A company can set up STP unit anywhere in India. Green card enabling priority treatment for Government clearances. 100% Income Tax Holiday as per section 10 A of the IT Act. (Foreign Currency Earnings). 100% Customs duty exemption on imports. 100% excise duty exemption on indigenous procurement.

SOFTWARE TECHNOLOGY PARK SCHEME Central Sales Tax reimbursement on indigenous purchases. STPI authorities clear projects costing less than Rs. 100 million with Indian Investment. Simplified Minimum Export Performance norms i. e. , "Positive Net Foreign Exchange Earnings. 100 Percent Foreign Equity is permitted. Re-Export of capital goods is permitted.

SOFTWARE TECHNOLOGY PARK SCHEME Approvals are given under single window clearance scheme. The sales in the Domestic Tariff Area (DTA) shall be permissible up to 50 Percent of the export in value terms. 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). 100 Percent Depreciation on Capital Goods over a period of five years. STP units are exempted from payment of corporate income tax.

SOFTWARE TECHNOLOGY PARK SCHEME All imports of Hardware & Software in the STP units are completely duty free. 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. Use of computer system for commercial training purposes is permissible subject to the Condition that no computer terminals are installed outside.

PROCEDURE FOR MEMBERSHIP OF SOFTWARE TECHNOLOGY PARK Obtain Permanent Account Number (PAN) of your company from the Income Tax Office. Obtain Importer-Exporter Code (IEC) from Director General of Foreign Trade. Permission of Reserve Bank of India in case of foreign equity. Prepare a project report in specified format. The report should cover following.

APPLICATION FORM Capital structure. Company Profile Pattern of Shareholding in the paid up capital. Projection for capital goods requirement. Manpower Projections. Export earnings.

APPLICATION FORM Foreign collaborations. Area of expertise. Estimated time frame for commencement of operation and exports. Communication requirement. Space requirement / Built –up land.

LIST OF ENCLOSURES Memorandum & Articles of Association. Partnership Deed for partnership firms Board Resolution Copy Permanent Account Number (PAN) Importer-Exporter Code (IEC). Banker’s Certificate – A certificate from r bank covering duration of maintaining company account with the Bank.

LIST OF ENCLOSURES RBI Permission in case of Foreign Equity. Form 32 giving List of Directors on Board. List of Directors / Partners with specimen signature. List of Directors / Partners of the company with names, addresses, contact numbers, email, specimen signature. Project Report. Export Order with Foreign Client.

LIST OF ENCLOSURES Proof of Premises. List of proposed Plant & Machinery in Three Copies. Application Processing Fees and Annual Service Charges.