The STP Scheme is a 100% export-oriented scheme for the development and export of computer software, including export of professional services using communication links or physical media. As a unique scheme, it focuses on one sector, i.e. computer software. The scheme integrates the government concept of 100% Export Oriented Units (EOU) and Export Processing Zones (EPZ) and the concept of Science Parks/Technology Parks, as operating elsewhere in the world. The unique feature of the STP scheme is the provisioning of single-point contact services for member units, enabling them to conduct exports operations at a pace commensurate with international practices.
SCHEME BENEFITS & HIGHLIGHTS
Approvals are given under single window clearance system.
An STP unit may be set up anywhere in India.
Jurisdictional STPI authorities can clear projects costing less than Rs.100 million with Indian Investment.
100% foreign equity is permitted.
All the imports of Hardware & Software in the STP units are completely duty free, import of second-hand capital goods are 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.
Sales in the Domestic Tariff Area (DTA) are permissible.
The capital goods purchased from the DTA are entitled for refund of GST.
Capital invested by foreign entrepreneurs, know-how Fees, royalty, dividend etc., can be freely repatriated after payment of Income Taxes due on them, if any
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 computers and computer peripherals over a period of five years.