Software Technology Parks of India –
Noida
The
100% Export Oriented Unit scheme (STP scheme) is for setting up of software
development and IT enabled services unit in India for 100% Export.
The STP scheme
is administered by the Directors of STPI.
Highlights of STP Scheme
•
100% Income Tax Holiday as per section 10A of the IT
Act.
•
100% Customs duty exemption on imports
•
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
procurement.
•
Central Sales Tax reimbursement on indigenous
purchases.
•
Green
card enabling priority treatment for Government clearances / other services.
•
100% foreign equity investment in
the companies permissible under the ‘Automatic Route’ of RBI.
•
Sales in the DTA (Domestic Tariff
Area) up to 50% of the foreign exchange earned by the unit.
•
Software units may also use the
computer system for training purpose (including commercial training).
Government of Maharashtra IT Policy
Benefits.
•
Stamp duty exemption.
•
Additional FSI.
•
Electricity duty exemption.
•
Octroi Duty Exemption
To establish a
STP firm, register with STPI and become STP member.
Software Technology Parks of India -
Noida
Procedure to become STP Member
The application form is
available free of charge. The application form can also be downloaded from our
website www.noida.stpi.in. The company has to give the presentation. The
agenda of the presentation structure is available here alongwith the checklist
of documents.
Guidelines to complete the
Application Form
Important
aspects of the application form are:
1. Company profile
2. Capital
structure
3. Pattern of
Shareholding in the paid up capital
4. Projection for
capital goods requirement
5. Manpower
Projections
6. Export earnings
7. Foreign
collaborations.
8.
Area of expertise.
9. Estimated time
frame for commencement of operation and exports
10. Communication
requirement
11. Space
requirement / Built –up land.
Others:
1. Kindly read the
application form thoroughly
2. Fill up all the
details as required
3. Put initials on
each page
List
of Enclosure
Following copies
of documents shall be the enclosures.
1.
Memorandum & Articles of Association
For
registered units (Public and Private Limited).
2.
Partnership Deed
For
partnership firms.
3.
Board Resolution
-
Board resolution copy mentioning
the willingness to get registered with STPI as 100% exporting firm. Also,
mention the name of the authorized signatory to sign all relevant documents.
-
For
maintaining separate books of accounts for the unit under STP Scheme as per
Para 6.11.1 and Para 6.32 of Foreign Trade Policy - chapter 6.
-
For maintaining distinct identity
as per Para 6.32 of Foreign Trade Policy-Handbook of Procedures - chapter 6.
This is not applicable in case of
Partnership Firm or Proprietary concern.
Software Technology Parks of India -
Noida
4.
Permanent Account Number – Enclose copy.
If is not available, Please apply to
Income Tax Office of the respective area. The application form for PAN No. is
available in the offices of Income Tax. Download the same from http://www.incometaxdelhi.nic.in/. The acknowledged copy of application
should be enclosed.
5.
Importer-Exporter Code (IEC) – Enclose copy.
If
not available, apply to Director General of Foreign Trade (DGFT).
Following documents are required
for IEC application –
a.
Covering letter on letter head of the firm to DGFT.
b.
Application Form consisting of
1.
Appendix 1-A
2.
2-A duly attested by the banker on the photograph.
3.
One extra photograph.
c.
Demand Draft for Rs.1,000 in favour
of ‘Joint Director General of Foreign Trade, Delhi’.
d.
Banker Certificate.
e.
Copy of Permanent Account Number (PAN)
f.
Declarations on Company letterhead:
-
There is no non-resident interest / investment in
the Firm / Co.
-
The Proprietor / Partner / Director
/ Karta of the Firm / Co. is/are not associated as Proprietor / Partners /
Directors / Karta in any other Firm/Co. which is in the caution List of RBI.
-
I/We
hereby certify that none of the director / Partner / Proprietor / Karta of the
Firm / Co. is a Director / Partner / Proprietor / Karta of the Firm/Co. which
has come to the Adverse notice of DGFT.
g.
In case of NRI interest / investment – submit copy
of RBI approval.
h.
The acknowledged copy of application to DGFT should
be enclosed.
6.
Banker’s Certificate
A
certificate from your bank covering duration of maintaining company account
with the Bank. Standard Format of Banker’s certificate is available here.
7.
RBI Permission in case of Foreign Equity
100% foreign equity investment in the
companies is permissible under the ‘Automatic Route’ of RBI. The company has to
intimate RBI and a copy should be submitted to STPI.
Software Technology Parks of India -
Noida
8.
Form 32 giving List of Directors on Board
Submit Copy of Form 32 certified by Registrar of
Companies. Applicable in case of Private / Public Ltd companies.
9.
List of Directors / Partners with specimen signature
List of Directors / Partners of the
company with names, addresses, contact nos, email, specimen signature.
For
proprietary concern, details of proprietor.
10.
Project Report
The format can
be downloaded from the website. Following are some important aspects to be
covered in the Project Report:
1.
Background of company and promoters
2.
Area of expertise in software development and
IT-enabled services
3.
Profiles of key personnel in the organization
4.
Strengths and achievements of the
company like potential market for software products project developed by the
company and in-house expertise in the area of specialization
5.
Financial arrangements and feasibility of the
proposed setup
6.
Marketing tie-up, if any
7.
Export performance for last three years in cases of
existing firms & last years Balance Sheet
8.
Export Orders in hand / in pipeline / under
registration.
9. Brochures
of the software products / company or Annual Report for the previous year
10. Space
Requirement / Built up Land
11. Manpower: Type
of people working
•
Project Manager
•
Project Leader
•
Senior Programmer
•
Junior Programmer/Operators
12. Wage Bill
11.
Export Order with Foreign Client
STP
registration can also be obtained even without submitting the export order.
But,
it is preferable to have export order in hand at the stage of STP registration.
If available, submit copy of any of the following
-
Export order
-
Contract
-
Purchase Order
-
Agreement signed with the foreign client.
Company
may also provide the details of the export orders in pipeline in case of non
availability of any firm order in hand.
Software Technology Parks of India -
Noida
12.
Proof of Premises
STP
firm can operate from owned or leased/rental premises.
-
For owned premises, submit Sale deed.
-
For leased/rental premises, submit Leave and License
Agreement.
-
Floor plan of the proposed STP premises to be
attached.
13.
List of proposed Plant & Machinery in Three
Copies
List of proposed Plant & Machinery
signed by authorized person on the company letterhead. The projections viz.
Imports and Indigenous purchases mentioned in the list should be as per the
application form.
14.
Application Processing Fees and
Annual Service Charges effective from January 2010
Application
processing fees and 3 years advance Annual Service Charges considering your
projected export turnover.
Application Processing
Fees
|
Rs. 2,500/-
|
|||
Export
Turnover as per
Invoice
|
Amount of
Annual Service
|
|||
raised
|
Charges
|
|||
Exports up
to Rs. 25
lakhs per annum
|
Rs. 8,000.00/-
|
|||
Exports above
Rs. 25 lakhs-50
lakhs
|
Rs. 16,000.00/-
|
|||
per annum
|
||||
Exports above
Rs. 50 lakhs-3
Crore
|
Rs. 55,000.00/-
|
|||
per annum
|
||||
Exports above
Rs. 3 crore-10
crore
|
Rs. 1,10,000.00/-
|
|||
per annum
|
||||
Exports above
Rs. 10 crore-25
crores
|
Rs. 2,25,000.00/-
|
|||
per annum
|
||||
Exports above
Rs. 25 crore-50
crores
|
Rs. 2,50,000.00/-
|
|||
per annum
|
||||
Exports above
Rs. 50 crore-100
|
Rs. 3,50,000.00/-
|
|||
crores per
annum
|
||||
Exports above
Rs. 100 crore-500
|
Rs. 5,75,000.00/-
|
|||
crores per
annum
|
||||
Exports above
Rs. 500 crore-1000
|
Rs. 6,00,000.00/-
|
|||
crores per
annum
|
||||
Exports above
Rs. 1000 crores
per
|
Rs. 6,50,000.00/-
|
|||
annum
|
||||
The
payment should be in form of Demand Draft in favor of Software Technology Parks
of India, Noida.
Note:
While filling up the projections etc., it is suggested that the applicant
should be in touch with STPI officials for proper guidance for submission of
application
STPI-Noida will process the application
and Letter of Permission will be issued. Application processing time frame is
three days.
STP Scheme Duration
The STP scheme
duration is valid for five years.
Software Technology Parks of India -
Noida
Following are the Mandatory
Requirement of STP Registration
1.
Legal Agreement with STPI.
2.
Custom Bonding.
3.
Minimum Export Obligation.
4.
Commencement of Commercial Production.
5.
Reports.
1.
Legal Agreement with STPI
Legal
Agreement is mandatory as Commitment for fulfillment of Terms and Conditions of
Letter of Permission. It will be executed for granting five years of
operations. The Legal Agreement will be executed on Rs. 100/- Stamp Paper. It
should be signed by the duly authorized person in STP premises.
2. Custom Bonding
Every STP firm is required to get
it’s premises (the STP location) custom bonded either it avails the benefits of
Customs Duty (Import) /Excise Duty (Indigenous) exemption or not.
At present,
custom bonding is a mandatory requirement.
Units operating under the STP
scheme, require a private bonded warehouse license under section 58 of the
Customs Act 1962 & with bond manufacturing facility under section 65.
Procedure for
Custom Bonding
Application
for Custom Bonding is to be made to the Jurisdictional Asst. Commissioner of
Customs in the prescribed format Customs will issue “Private Bonded Warehouse
License”.
The application
should be submitted with the copies of the following documents :
1.
Application for Custom Bonding.
2.
Copy of STPI - Noida Letter of Permission.
3.
Copy of Green Card issued by STPI Noida.
4.
List of proposed Plant & Machinery of Capital
Goods attested by STPI.
5.
Agreement with STPI for Export Commitment.
6.
Process of Manufacture (Software Development
Process).
7.
Self Removal Procedure (S.R.P.) approval request
letter.
8.
Supplementary Terms and Conditions,
duly accepted by us on Rs. 100/- Stamp Paper to be notarise.
9.
Solvency Certificate.
10.
B – 17 Bond on Rs. 100/- Stamp Paper to be notarise.
11.
Affidavit on Rs. 100/- Stamp Paper to be notarise.
12.
Insurance for Fire & Burglary.
(Policy in the name of Commissioner of Customs, Mumbai, A/c – Company name with
STP Unit address.)
Software Technology Parks of India -
Noida
13.
Bank Guarantee.
14.
Declaration for Custom.
15.
Memorandum and Articles of Association.
16.
Lease Agreement of Premises or Ownership supporting
details
17.
Ground Plan of Premises.
18.
List of Directors with Specimen signatures
19.
Copy of Importer Exporter Code No. (IEC)
20.
Copy of Permanent Account No. (PAN No.).
21.
Authorized Signatory Board Resolution / Authority
Letter.
B-17 Bond.
It is a general bond to be executed with
surety / security. The B-17 Bond has to be executed at 25% of the custom duty
value. Where the units are unable to give surety they can execute the bond with
the security for 5% of the value of the bond in the form of Bank Guarantee on
stamp paper of Rs. 100/-
¬ Solvency
certificate for Rs.10 Lacs from Bank - It is a certificate issued by the banker
of the STP firm in lieu of a Rs.10 Lacs Fixed Deposit Account maintained by the
unit with the banker stating the financial fitness of the company up to the
limit of Rs.10 Lacs to meet the financial obligation if any without any
obligation or liability on the banker.
¬ Affidavit
on Rs.100/- stamp paper - An affidavit is an undertaking given by the STP firm
to Customs stating that none of the Directors or Partners or CEO’s or
Proprietor is/are involved in Customs & Excise duty evasion cases or any other
smuggling
activities.
Supplementary Terms and Conditions to
Customs by the unit, printed on Rs.100/- stamp paper.
Inspection of
Premises
Before issuing the Bond License, an
inspection of premises is conducted by Customs. The requirement for issuing the
Bond License under Section 58 and 65 of Customs Act 1962 are :
¬ Adequate
arrangement for light
¬ All
windows, ventilation, space to be properly barred/secured with strong shutters
that can be fastened firmly from inside.
¬ Arrangement for
locking door firmly from security point of view.
¬ Precaution
against fire.
¬ Dry & Airy
¬ Insurance
Policy favoring Commissioner of Customs for the Bond value covering Fire and
Burglary.
¬ Single door
Entry and Exists.
Software Technology Parks of India -
Noida
3. Minimum Export Obligation
The
Minimum Export Performance on the STP unit on Net Foreign Exchange terms will
be as follows :
As per the Foreign Trade Policy 1st Sept 2004 – 31st March 2009
The unit shall be a positive net foreign
exchange earner. Net Foreign Exchange Earnings (NFE) shall be calculated
cumulatively for a period of five years from the commencement of production
according to the formula given below. Items of manufacture for export specified
in the Letter of Permission (LOP)/ Letter of Intent (LOI) alone shall be taken
into account for calculation of NFE.
Positive
NFE = A – B > 0
Where
NFE is Net Foreign Exchange Earning.
A)
is the FOB value of exports by the EOU/EHTP/STP
unit; and
B)
is the sum total of the CIF value
of all imported inputs and the CIF value of all imported capital goods, and the
value of all payments made in foreign exchange by way of commission, royalty,
fees, dividends, interest on external borrowings during the first five year
period or any other charges. "Inputs" mean raw materials,
intermediates, components, consumables, parts and packing materials
4. Commencement of Commercial Production
STP
firm has to commence it’s commercial production within the stipulated time
frame according to the application form. After commencing the operations, the
STP member should intimate in writing to STPI.
5. Reports
Export Import
Performance report :
1.
Monthly Basis.
2.
Quarterly Basis.
3.
Annually Basis.
4.
Any other reports as and when required.
Software Technology
Parks of India - Noida
On Going Activity – STPI
Certification
During the STP
membership duration (five years), STPI will offer the following services :
• Issuance of certificates & Permission
Import Certificate, Excise exemption,
Procurement certificate, Transfer of Capital goods, Capital Goods (CG)
Enhancement, Change of Name, Change of Location, Expansion of STP Location,
Permission for DTA Sales, Permission for Re-export, Permission for De-bonding,
etc.
•
Approval of Contracts / Export Orders etc. with
foreign clients.
•
Software Exports Certification.
•
CST Reimbursement.
•
Marketing Guidance.
•
Various circulars guidelines etc. on website
Cancellation of
STP Registration
The STP unit can fulfill the export
obligation and can withdraw the STP registration. For any cancellation, service
charges will not be refunded. Cancellation of STP registration will be subject
to the Foreign Trade Policy.
No comments:
Post a Comment