{"id":41085,"date":"2022-03-14T11:31:06","date_gmt":"2022-03-14T06:01:06","guid":{"rendered":"https:\/\/corpbiz.io\/learning\/?p=41085"},"modified":"2022-03-14T11:31:07","modified_gmt":"2022-03-14T06:01:07","slug":"software-technology-park-scheme","status":"publish","type":"post","link":"https:\/\/corpbiz.io\/learning\/software-technology-park-scheme\/","title":{"rendered":"Software Technology Park Scheme \u2013 An Overview"},"content":{"rendered":"\n<p class=\"has-drop-cap\">The\nSoftware Technology Park Scheme is a 100% Export Oriented Scheme for the\ndevelopment &amp; export of professional services using communication\nlinks\/physical media. The Software Technology Park Scheme is distinctive in its\nnature as it focuses on one sector or product, i.e., Computer Software. The\nscheme integrates the Government idea of EPZ (Export Processing Zone) and EOU\n(Export Oriented Units) &amp; the concept of Technology Parks or Science Parks,\nas operating elsewhere in the world.<\/p>\n\n\n\n<p>For\nthe promotion or advancement of software exports from the country, The STPI or\nSoftware Technology Parks of India (STPI) was set up by the Ministry of\nCommunication &amp; Information Technology, Government of India, as an\nindependent statutory body to promote and increase software exports from India.\nData communications services, training, statutory services, incubation\nfacilities, and value-added services are provided by the Software Technology\nPark of India. The STPI Headquarters is located in New Delhi, and STPIs have\nbeen established across the country and have a presence in 53 locations. Over\n4000 units are incorporated under Software Technology Park Scheme.<\/p>\n\n\n\n<p>Software\nTechnology Park Scheme allows software companies to establish operations with a\nspecial focus on SMEs and start-up units to foster the growth &amp; development\nof the software industry since it&#8217;s a 100% Export Oriented Scheme. Units\nundertaking to export their overall production of products &amp; services may\nbe established under the <strong><em>EHTP (Electronic Hardware Technology Park)\nScheme<\/em><\/strong>. Such units may be involved in manufacture &amp; services. The\nunique feature of the Software Technology Park Scheme is the provisioning of\nsingle-point contact services for member units, enabling them to conduct\noperations at a pace appropriate with international practices.<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title ez-toc-toggle\" style=\"cursor:pointer\">Page Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 eztoc-toggle-hide-by-default' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/corpbiz.io\/learning\/software-technology-park-scheme\/#Objectives_of_Software_Technology_Parks_in_India\" >Objectives of\nSoftware Technology Parks in India<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/corpbiz.io\/learning\/software-technology-park-scheme\/#What_are_the_Benefits_of_the_Software_Technology_Park_Scheme\" >What are the\nBenefits of the Software Technology Park Scheme?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/corpbiz.io\/learning\/software-technology-park-scheme\/#Role_of_STPI\" >Role of STPI<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/corpbiz.io\/learning\/software-technology-park-scheme\/#Eligibility_of_STPI_Registration_under_Software_Technology_Park_Scheme\" >Eligibility of\nSTPI Registration under Software Technology Park Scheme<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/corpbiz.io\/learning\/software-technology-park-scheme\/#Electropreneur_Park\" >Electropreneur\nPark<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/corpbiz.io\/learning\/software-technology-park-scheme\/#Conclusion\" >Conclusion<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Objectives_of_Software_Technology_Parks_in_India\"><\/span>Objectives of\nSoftware Technology Parks in India<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Following\nare the objectives of the SPTI or Software Technology Parks in India:<\/p>\n\n\n\n<ul><li><strong><em>Promotion &amp; Export<\/em><\/strong>: The STPI was set up with the primary objective of promoting the development of software products within the country. Apart from this, export incentives for R&amp;D and technology are one of the primary aims of STPI Registration.<\/li><li><strong><em>Improve the Amount of Data Communication Services<\/em><\/strong>: Increasing the number of communication services can be facilitated to different industries via this society.<\/li><li><strong><em>Contributing to <a href=\"https:\/\/corpbiz.io\/msme-registration\">MSMEs<\/a><\/em><\/strong>: India immensely includes Micro, Small, and Medium Enterprises to promote software development in these sectors; the Government of India has come out with different schemes under the system of STPI in India.<\/li><li><strong><em>Increase the software quality and improve the requirement of customers<\/em><\/strong>: Through such programs provided by society, improvement or advancement in terms of quality can be achieved. This will directly affect customers&#8217; satisfaction needs in society.<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_are_the_Benefits_of_the_Software_Technology_Park_Scheme\"><\/span>What are the\nBenefits of the Software Technology Park Scheme?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Following\nare some benefits under Software Technology Park Scheme:<\/p>\n\n\n\n<ul><li>Exemption on Custom Duty in full on imports;<\/li><li>Exemption on CED (Central Excise Duty) in full-on original procurement;<\/li><li>CSTR (Central Sales Tax Reimbursement) on indigenous purchase;<\/li><li>Importation of equipment on a loan basis or lease;<\/li><li>Permission of sales in the DTA (Domestic Tariff Area) up to 50% of the FOB value of exports;<\/li><li>Free importation of all pertinent products or equipment comprising second-hand equipment (except prohibited items);<\/li><li>Permission of 100% <strong>FDI<\/strong><sup><a href=\"https:\/\/en.wikipedia.org\/wiki\/Foreign_direct_investment\"><strong>[1]<\/strong><\/a><\/sup>;<\/li><li>Permission to use of computer imported for training (subject to certain conditions);<\/li><li>A company can establish an STP unit anywhere in India;<\/li><li>Re-export of Capital Goods is also permitted;<\/li><li>100% Depreciation on Capital goods over 5 years of period.<\/li><li>Capital invested by foreign entrepreneurs, know-how- Royalty, Fees, Dividend, etc., can be freely repatriated after payment of Income Taxes due on them.<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Role_of_STPI\"><\/span>Role of STPI<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Software\nTechnology Park units exported software and IT worth Rs. 215264 crores in\nFinancial Year 2010-11. The state with the biggest export contribution was\nKarnataka, followed by Tamil Nadu, Telangana, Maharashtra, and Haryana.<\/p>\n\n\n\n<p>Besides\nregulating the Software Technology Park Scheme, STPI centres provide a variety\nof services comprising high-speed data communication, consultancy, data\ncentres, data hosting, and network marketing. STPI facilitate physical hosting\nfor the National Internet Exchange of India.<\/p>\n\n\n\n<p>The\ntax benefits under the IT Act Section 10A applicable to Software Technology\nPark units has expired since March 2011. While the Government of India has\nchosen not to extend the Section 10A benefits against the request by the IT\nunits, most of the STP (Software Technology Park) registered SME units will be\naffected &amp; now will have to pay IT on profits earned from exports.<\/p>\n\n\n\n<p>A\nnew incentive scheme for ITES &amp; IT companies is under discussion. It will\nhelp the dispersal of the IT industry in smaller cities and also support\nSTPI-registered units, which are not covered under any incentive scheme.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Eligibility_of_STPI_Registration_under_Software_Technology_Park_Scheme\"><\/span>Eligibility of\nSTPI Registration under Software Technology Park Scheme<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Following\nare the eligible applicant who can file for STPI Registration under Software\nTechnology Park Scheme:<\/p>\n\n\n\n<ol><li>An Indian Company;<\/li><li>A branch office of the foreign\ncompany;<\/li><li>A subsidiary of a foreign\ncompany.<\/li><\/ol>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Electropreneur_Park\"><\/span>Electropreneur\nPark<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>ESDM\nor Electronic System Design &amp; Manufacturing is deemed to be one of the\nfastest-growing sectors of the Indian Economy. To support the new entrepreneurs\nof this sector, Software Technology Park of India, along with the IESA (Indian\nElectronics &amp; Semiconductor Association) and Delhi University, has set up\nan Electropreneur Park in Delhi. This initiative supports 50 start-ups in the\nESDM space and aims to create at least 5 global companies within 5 years. The\npark aims at local IP creation and indigenous product development that outcomes\nin increased domestic value addition.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span>Conclusion<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>STPI has been implementing the Software Technology Park Scheme and EHTP Scheme for the promotion of the IT or ITES industry. Software Technology Park Scheme is a unique scheme that is designed to promote the software industry growth of SMEs &amp; Start-ups without any locational restrictions.<\/p>\n\n\n\n<p class=\"text-left\"><b>Read our Article<\/b>:<mark style=\"background: #fffd03 !important;\"><a href=\"https:\/\/corpbiz.io\/learning\/market-intervention-price-scheme-mips-for-farmers\/\">Market Intervention Price Scheme (MIPS) for Farmers: An Overview\n<\/a><\/mark><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Software Technology Park Scheme is a 100% Export Oriented Scheme for the development &amp; export of professional services using communication links\/physical media. The Software Technology Park Scheme is distinctive in its nature as it focuses on one sector or product, i.e., Computer Software. The scheme integrates the Government idea of EPZ (Export Processing Zone) [&hellip;]<\/p>\n","protected":false},"author":35,"featured_media":41087,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[153],"tags":[2179],"acf":{"service_id":"215"},"authorName":"Karan Singh","authorImageUrl":"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2022\/01\/processed-1-150x150.jpeg","authorDescription":"A legal writing enthusiast, a wanderer, and a zealous reader. After gaining a lot of knowledge about the diverse legal topics and developing research skills, Karan joined the league of legal content writers to deliver quality-rich blogs.","postViews":8128,"readingTime":4,"_links":{"self":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/41085"}],"collection":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/users\/35"}],"replies":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/comments?post=41085"}],"version-history":[{"count":9,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/41085\/revisions"}],"predecessor-version":[{"id":41095,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/41085\/revisions\/41095"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media\/41087"}],"wp:attachment":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media?parent=41085"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/categories?post=41085"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/tags?post=41085"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}