Software Technology Parks of India (STPI) Related Consultancy Services

STP SCHEME

In the globally emerging economy, Information Technology is considered the largest and the fastest growing and most profitable industry. Identifying IT as the future for India and its huge potential, the Indian Government announced a software policy in the year 1986 making “Software, Exports, Development & Training” as a major thrust area for which the Government composed the STP Scheme covering facts like simplifications and rationalization of procedures. The Indian Government established and registered STPI as an Autonomous Society under the Department of Electronics (Now Ministry of Information Technology) on 5th June 1991 with an intention to implement the STP Scheme, set-up and manage the infrastructural facilities and provide other services including training to professional.

The Software Technology Park Scheme (under The Ministry of Communication and Information Technology, Government of India) is a 100% Export Oriented Scheme for undertaking Software Development/IT enabled services for Export using Data Communication links or in the form of physical exports including export of professional services for providing consultancy services and development of software.

SCHEME BENEFITS & HIGHLIGHTS:

• 100% exemption on customs duty for imports of capital equipments
• Equipment can also be imported on loan or lease basis
• All relevant equipment/goods including second hand equipment can be imported (except prohibited items)
• 100% excise duty exemption on indigenous items attainment.
• Central Sales Tax reimbursement on indigenous items procurement
• Green card enabling priority treatment for government clearances / other services
• 100% Foreign Direct Investment permissible through 'Automatic Route' of RBI
• Sales in the DTA (Domestic Tariff Area) up to 50% of the foreign exchange earned by the STP/EHTP unit
• Over a period of five years, 100% Depreciation on capital goods
• Software units may also use the computer system for training purpose (including commercial training)

STATUTORY PROCEDURES: The following are the statutory procedures to be followed by the STP units in India.

I. PERIODIC COMPLIANCE SERVICES

• Statutory Reports for STP Units
• Statutory Compliance for STP Units

II. STATUTORY REPORTS FOR STP UNITS

• Monthly Progress Reports (MPR) & Quarterly Progress Reports (QPR): Monthly and Quarterly Progress Reports are required to be submitted by all units by 7th of a month on completion of previous month and by 10th of a month on completion of previous quarter respectively in the prescribed format. It is a mandatory requirement and units which are irregular in submitting MPRs & QRs can be denied services of STPI.
• Annual Performance Reports(APR): As per the prescribed format, Yearly performance report should be submitted.

III. STATUTORY COMPLIANCE FOR STP UNITS

• ACCOUNTS- DISTINCT IDENTITY: If an industrial enterprise is operating both as a domestic unit as well as an EHTP/STP unit, it shall have two different identities with separate accounts, including separate bank accounts. However, it is not necessary for it to be a separate legal entity, but it should be possible to distinguish the imports and exports or supplies affected by the EHTP/STP units from those made by the other units of the enterprise. Maintain the accounts as under:
  • Maintenances of Fixed Asset Registers.
  • Maintenance of Foreign Inward Remittance Certificate file (FIRC) & Bank Realization Certificate (BRC) file where the original of the FIRCs and BRCs are kept.
  • Maintenance of contract file, where copies of contracts received from buyers are maintained.
  • Maintenance of Sales Invoices.
• BANKING PROCEDURE: The following procedures are involved in maintaining a banking account for an STP unit.
  • Separate Bank account should be maintained for each unit.
  • Even though a unit is allowed to join as many bank accounts as needed, it shall assign a single branch of the selected bank in order to carry out the transactions of the unit.
  • Submission of all export and shipping documents and the realization of all export proceedings will be done through the designated branch.

What Rajput Jain & Associates Offers

We provide services for registration, statutory compliance, Accounting and banking facilitation to avail the advantages of STPI Scheme.