Software Technology Parks of India ( STPI), is an Independent Society set up by the Ministry of Electronics and Information Technology, Government of India in 1991, to encourage, promote & advancing the Software Exports from India.
The Software Technology Park (STP) scheme is a 100% export oriented scheme for the development & export of computer software & services using data communication links or in the form of physical media including the export of professional services. The major performance of this project is a single point contact service to the STP units.
Software Technology Parks of India ( STPI) keeps internal engineering resources to provide training, consulting, and implementation services. Services cover System Integration, Network Design, Installation, Operations, and maintenance of application networks & facilities in varied areas.
Following are the standard and major Compliance under STPI Scheme:-
1) Legal Agreement (LA) with STPI
LA is mandatory as Commitment for the fulfillment of Terms and Conditions of Letter of Permission. It will be executed for granting five years of operations.
2) Commencement of Commercial Production
STP organization/unit has to commence its commercial production within the stipulated time frame according to the application form.
3) Minimum Export Obligation: STPI unit has to comply with minimum export obligation as laid down in Foreign Trade Policy
4) Green card
Green Card helps the STP unit to get preferred treatment in matters relating to the implementation of the project, at the level of both Central and State Governments.
5) Import Certificate
The import of the equipment is covered by the exemption. STP unit is entitled to complete customs duty exemption on capital goods & office equipment & data communication equipment & telecommunication
equipment/power equipment as per the Foreign Trade Policy.
6) Excise Exemption
STP unit is entitled to excise duty exemption for indigenous purchases. STP units can obtain excise exemption on capital goods/office equipment / data communication equipment / telecommunication equipment/power equipment. Excise exemption is available to the STP unit only if the goods are purchased from the company.
7) Approval for Domestic Tariff Area (DTA) Sales
As per the Foreign Trade Policy, the STP units can make local sales to the extent of 50% of the FOB value of exports and/or foreign exchange earned. This is a DTA entitlement.
8) Change of Name
As and when you require the approval for change of name, submit an application along with the copy of Fresh Certificate of Incorporation consequent to change of name issued by Registrar of Companies (ROC).
9) Change of Location
STPI permits Change of Location from the place mentioned in the LOP/LOI (Approval Letter) to another location. As and when you require the approval for change of location, submit an application along with the copy of Lease and License compliance, Floor plan & original Green card. STPI scrutinizes the application and issues No Objection Certificate for Change of Location within 2 or 3 days.
10) Expansion of STP Location
STPI permits to include additional locations to the place mentioned in the LOP/LOI (Approval Letter). The expansion of the STP location is permitted under the Foreign Trade Policy. As and when you require, the approval for expansion of STP location, submit an application along with the ground plan for the expanded location and copy of the leave and license agreement for the same.
11) Transfer of Imported / Indigenous Goods
As per Foreign Trade Policy, the transfer of manufactured goods including processed / semi-finished goods from one EOU/EPZ/EHTP/STP unit to another EOU/EPZ/EHTP/STP unit is permissible. Please submit an application along with the list of equipment and 3 copies of invoices to enable us to issue the No Objection Certificate (NOC) for transfer.
12) Re-Export of Imported Capital Goods (CG)
STP units can re-export imported capital goods. They are allowed to re-export the capital
goods imported in situations explained below:
a) Re-export of CG for Replacement :
Goods or parts thereof on being imported and found defective as otherwise unfit for use or which have been damaged after import may be exported, and goods in replacement thereof may be supplied free of cost by the foreign supplier.
b) Re-export of CG imported on Loan :
Capital Goods imported for a specific project/period of time can be re-exported with the permission of the Director, STPI.
c) Re-export of CG for Repair and Return :
Capital Goods imported for a project if found defective the same may be reexported for repair and return.
Please submit an application along with the list of equipment and 3 copies of invoices to enable us to issue a NOC for re-export of Imported Capital goods.
13) Reconditioning, Repair & Re-Engineering
As per Foreign Trade Policy, EOU/EPZ/EHTP/STP units may be permitted to import goods of any origin to carry out reconditioning, repair, testing, calibration, quality improvement, up-gradation of technology and re-engineering activities for export in freely convertible foreign currency. STP unit may apply in the standard format along with the 3 copies of invoices to enable STPI to issue a No Objection Certificate for the same.
14) Replacement of Indigenous goods
As per Foreign Trade Policy, goods or parts thereof on being endogenously procured and found defective or otherwise unfit for use or which have been damaged or become defective after procurement may be returned or destroyed and replacement thereof for the same goods after repairs may be brought back from their authorized supplier in India / indigenous supplier.
15) Submission of Bulk SOFTEX form
Submission of information as per Annexure A for software exports and Annexure B for Royalty exports to STPI Authority
- Four copies (Original/duplicate/Triplicate/quadruplicate) of Annexure A needs to be submitted not later than 30 days from the close of the month in which invoices were raised.for attestation.
- On receipt of information in Annexure A, STPI center may seek any supporting documentation like Invoice, MSA, SOW, etc from Exporters for specific invoices on a sample basis.
- The software export declaration is submitted to STPI in Quadruplicate. Triplicate copy is retained by STPI. An original copy is sent to RBI by STPI. Duplicate copy is given to Authorised Dealer Bank by STPI and the Quadruplicate copy is retained by the exporter. In this case, one quadruplicate copy retained by the exporter.
- The soft copy will be in excel and to be password protected.
16) Renewal of Letter of Permission (LOP) for working as STP Unit.
Please be noted that the validity of LOP is for 5 years, which means after every 5 years, the STPI unit has to apply for the renewal of LOP.
