THE STP SCHEME

YOU BENEFIT FROM IT
This multifaceted scheme is arts the vit 

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Duty Free Imports No. import licence is required .Import certificates are issued on request by Director STPI - Jaipur for Duty Free Imports of Capital Goods/Raw Material/Components.
Excise Relief Excise exemption is available Goods bought from Domestic Market, on request from STPI-Jaipur.
Income Tax Holiday Income tax holiday is available for STP units upto 31.03.2009.
Foreign Equity Foreign equity upto 100% is allowed in STP scheme .
DTA Sales The sales in domestic tariff area are permissible area are permissible upto 50% of the exports, in value term , made by the STP unit.
Common Infrastructure Common infrastructure facilities such as Built-up Space , High Speed Data Communication link, power etc. are provided readily at IT Park, Sitapura Jaipur.

 

EXPORT OBLIGATION

Units in STP scheme have to fulfill export obligation as per guidelines of Department of Electronic , Government of India , as per the following formula :

Export obligation = 1.5 x CIF value of the hardware/software Imported, for
(NET FE basis)      which FE is released by Government of India +1.5x wage bill
  • The obligation on the hardware part will be fulfilled over a period of four years .
  • The obligation on the wage bill is on annual basis .
  • Net foreign exchange for this purpose is governed by the definition given in the Software Policy announced in    December , 1986 which states :

"Net foreign exchange earned for this purpose is defined as foreign exchange inflows as a result of software exports less foreign exchange outflows on account of expenditure , other than initial hardware and/or software import."

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