Software Technology Parks of India - Bangalore

Transcription

1 Software Technology Parks of India a step in right direction Ministry of Information Technology, (Ministry of Information Technology) Govt. of India has recognized the potential for software exports and created the Software Technology Park Scheme (STP). As a Part of this scheme, MIT has taken the right step at the right time in establishing the Software Technology Parks of India (STPI), an autonomous society. STPI centers have been created at strategic locations across the country. New fiscal incentives offered under this scheme, Infrastructure created by STPI and the Investor friendly environment have contributed to a steep growth in the Software Exports Goal To contribute to the prosperity of the national economy through promotion of exports from the Software & Services Industry by facilitating all the statutory services of the Govt., strengthening the Communication Infrastructure (Internet Service Provider) and by increasing the quality consciousness in the Industry. Objectives To act as front-end to the Software Industry for the Govt. policies and approvals To establish and provide Data communication facilities (i.e providing Internet and IPLC services under the name SoftNET and SoftPoint ). STPI is pioneer & first in providing the Data Communication Facility through Radio Links and Fiber, having its own internet / satellite gateway to provide such service to its esteemed customers To provide Infrastructure facilities like Office Space/ Incubation and General Amenities. To promote development and export of software & the services through technology assessments, market analysis, marketing segmentation, marketing support & related areas. To train professionals and to encourage design and development in the field of Software Technology and Software Engineering

2 Software or Electronic Hardware companies who are exporting or proposing to export their entire production of goods and services (i.e 100%) are eligible to set up/register under the Software Technology Parks Scheme (STP Scheme) or Electronic Hardware Technology Park Scheme (EHTP Scheme). Commensurate with the EXIM / FT policy to give a special thrust to export of computer software and electronic hardware, such units would be encouraged to be set up under the aforementioned export oriented scheme. Software Units may undertake exports using data communication links or in the form of Physical exports (which may be through courier service also), including export of professional services. While Electronic Hardware Units shall undertake exports in the physical form. In order to become certified member under STP Scheme, approval from the competent authority is required, i.e The Director, STPI. The detailed procedure along with the application form and procedures is available in the website. STP Scheme its benefits Approvals are given under single window clearance mechanism. An STP project may be set up any where in India Jurisdictional STPI authorities clear projects costing less than Rs. 100 million with Indian Investment. 100% Foreign equity is permitted All the imports / Indigenous Purchase of Hardware & Software in the STP units are completely duty free(customs & Central Excise), import of second hand capital goods also permitted. Re-Export of capital goods are permitted. Simplified Minimum Export Performance norms i.e., " Positive Net Foreign Exchange Earnings " Use of computer system for commercial training purpose is permissible subject to the condition that no computer terminals are installed outside the STP premises. The sales in the Domestic Tariff Area (DTA) shall be permissible upto 50% of the export in value terms. STP units are exempted from payment of corporate income tax till Assement Year 2010

3 The capital goods purchased from the Domestic Tariff Area (DTA) are entitled for benefits like Excise Duty & Reimbursement of Central Sales Tax (CST). Capital invested by Foreign Entrepreneurs Know - How Fees, Royalty, Dividend etc., can 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% Depreciation on Capital Goods over a period of five years.

4 CHECKLIST FOR APPLICATION PROCESSING: 1. The application should be in the prescribed format. Form should have been typed neatly. Hand written will not be accepted. Each application should be duly signed by the authorized Signatory of the company on each page of the application along with office seal of the company. 2. Memorandum and Article of Association 3. Board Resolution for setting up the STP Unit and persons authorized to sign. 4. Resume of Person Heading the operation / CEO. 5. Detailed project report / Business plan consist of Company profile Promoters background Units Area of Expertise / Services offered Marketing Strategy / Marketing Arrangements Manpower Plan Future Plans Others 6. Financials Statement like : Cost of project & Means of finance Projected P&L A/c. Projected Balance Sheet Projected Cashflow / fund flow statement. Export working (As per Transfer pricing guidelines in the case of subsidiaries) 7. Other documents like Copy of FIRC s and letter filed with RBI for receipt of foreign equity (if any). Copy of Master/ Service agreement signed with parent company / clients. List of Directors / Promoters / share holders IEC Copy Lease Deed/ Sale deed / Rental Deed w.r.t proposed location of operation 8. Receipt for payment of Application processing fee (Rs. 2,500/) Please Refer pt.8 below.

5 9. Initial Application processing fee of INR 2,500 and advance service charges of INR 22,500 at the time of executing the legal agreement. Service charges to be paid annually as per the slabs given in the statutory compliances column. STAGE I: TIME FRAME FOR PROCESSING AND GRANTING APPROVALS: At the first stage, the draft application submitted by the unit will be screened by the STPI authorities. Once, the authorities cleared the draft application, the unit has to submit 2 sets of the fair applications along with the necessary documents. STAGE II: STAGE III: After Stage I, the CEO / Head of the operation of the company should make a presentation to the New Application Processing Committee and The Director of STPI. After completing the Stage II process and subject to The Director & New application processing committee recommendation the unit will be issued with Letter of permission (LOP) / Letter of intent under STP scheme., which is known as the 100% EoU status. The STPI license (Letter of Permission) will contain the following parameters. 1. Operation Status of the Unit 2. Item of manufacture ( viz., Development of software / IT Enabled Services). 3. The capacity of the import of capital goods for the project. 4. Export Obligation Commitment 5. Terms and Conditions a. DTA Sales b. Separate Account should be maintained for STPI c. The unit should have the Private Bonded Warehouse License.

6 Competent Authority for approval Director of Software Technology Parks of India or Inter Ministerial Standing Committee (IMSC) Time frame for processing and granting approvals In case the applications are complete in all respect, the time frame for granting approval is generally as below: Director(s) STPI days The above time frame may vary due to unavoidable circumstances. Application must accompany a Demand Draft of Rs. 2500/- drawn in favour of The Director STPI as processing fees. Post Approval Process: After, the Letter of Permission is issued, within 45 days the STP unit has to furnish acceptance to the terms and conditions as stipulated in the LOP. Also, the unit has to execute the Legal Undertaking with STPI on an Rs.100/- stamp paper, in the specified format with the necessary enclosures. The unit should also apply for RCMC, Green Card and List Attestation in the specified format. (all the formats are available for download in the website). If the unit does not propose to avail any duty free benefits, then need not have to apply for List Attestation. Once the approval is accorded for all of the above i.e Legal Agreement, RCMC, Green Card and / List Attestation, the unit will have to approach customs authorities for premise bonding. After the bonding is done copy of the customs private bonded ware house license (PBWHL) is required to be filed with STPI for up-dation of records and database. Only if the STP unit s LOP, LUT, PBWHL status is valid then the unit will be eligible to carry out the necessary statutory processes and accordingly STPI will issue such approvals when requested.

7 Statutory compliance for STP units. Important statutory compliance for STP units are listed below as reference: Accounts: Each of such unit is required to maintain separate accounts for its operations. Separate annual balance sheet will have to be made for each such unit which would be become a part of the main balance sheet of the company. For maintaining separate accounts the following will have to be done: a) Maintenance of separate Cash & Bank book and corresponding vouchers b) Maintenance of sales invoices. c) Maintenance of Fixed Asset register. d) Maintenance of Foreign Inward Remittance Certificate file (FIRCs) & Bank Realization Certificates file where the original of the FIRCs and BRCs are kept. e) Maintenance of contract file, where copies of contracts received from buyers are maintained. f) Preparation of yearly balance sheet for the unit which would ultimately become a part of the balance sheet of the company. Banking: Each unit is required to maintain separate bank accounts for its operations. The units is free to have as many bank accounts as it desires but shall have to designate a single branch of bank whom all export documents will be submitted. In other words the work of handling of all shipping documents and realization of export proceeds will have to be entrusted to this designated bank branch, Mandatory Statutory Obligation & Records: (Pl. refer our website for detailed procedures and formats) The following are the details of other mandatory statutory obligation and records that have to be kept at the unit: a) Import /CT3 Certificate : All the duty free import /Indigenous purchase is required to be made after obtaining permission /approval by STPI. A copy of the import certificates issued by STPI permitted imports for the unit should be maintained. This should have the full debits etc., as per the actual imports. b) Export Certificate : All the exports invoices raised on the client is required to be submitted to STPI along with the Softex form and relevant Work / Purchase order and obtain certification, within 30 days from the date of Invoice. A copy of the certified export forms attested by STPI should be maintained. c) Bill of Entry File : Copies of all the Bill of Entries for the import of materials have to be maintained in this file. This should be maintained in the same order as per the prescribed format

8 d) Performance Reports File : Monthly & Quarterly performance reports have to be filed with STPI within 5 days after the end of the month / Quarter. Tentative Annual Performance Report is required to be filed during the last week of march every year, The annual performance report provisional by 30 th April and the audited annual performance report by 30 th June of every year. e) Other Statutory Approvals : Any other post approval statutory process w.r.t STP unit viz, Name Change, Change in location, Shifting/ Inter Unit of CG, DTA sales, Sub-contracting, De-bonding / Scraping of CG, De-bonding of premise, Donations, Re-export, Renewal & Revalidation of LOP etc., upto EXIT from STP/EHTP scheme is required to be carried out with the approval of STPI. Service Charges to STPI: Each STP unit is required to pay service charges to STPI as per following: Export Turnover Revised Annual Service Charge Exports upto Rs.25 lakhs per annum Rs. 7,500/- Exports between Rs lakhs per annum Rs. 15,000/- Exports between Rs lakhs per annum Rs. 50,000/- Exports between Rs 3-10 Cr. per annum Rs 1,00,000/- Exports between Rs Cr. per annum Rs. 2,00,000/- Exports between Rs Cr. per annum Rs. Exports above Rs 100 Crores and above per annum 3,00,000/- Rs. 5,00,000/- Rs, 22,500 /- will be paid as Advance service charges at the time of executing Legal Undertaking.

9 Database - Details to be submitted along with the STP Application NAME OF THE COMPANY : Details of the following addresses: Registered Office: Other STP locations, bonded under STPI license (Bangalore Jurisdiction), along with Telephone Numbers URL Address : Area of Expertise : Details of the Head of the Organization (in Bangalore) Name & Designation: Contact Details: Tel No with Extn: Fax No: Mobile No: Direct No: Office Address of the Head of the Organization : Contact Person (for Technical/ Datacom Services) Name & Designation: Contact Details: Tel # with Extn: Fax #: Mobile No: Direct No: Office Address of Contact Person (Technical):

10 Contact Person (for Admin/ Financial Details) Name & Designation: Contact Details: Tel No with Extn: Fax No: Mobile No: Direct No: Office Address of Contact Person (Admin): Contact Person (for Export Import Details) Name & Designation: Contact Details: Tel No with Extn: Fax No: Mobile No: Direct No: Office Address of Contact Person (EIG) The above information provided is for updation of our database and will be used for important correspondences from STPI. Please Note: Any change in future with regard to the details furnished above should be informed to STPI immediately by Fax: or TEL #: /6103/6104:::::::::::FAX #: :::::::::::URL:

11 Company Database Details to be submitted along with application Sl.No Particulars Details 01 Name of the Company 02 Type of Company i.e FE, MIC, SME 03 CEO Name / HOO 04 Tel.Nos Web Address 05 Parent Company details - Founder's Name - Brief on Activity / Area of Expertise - Revenue (globally) - Head count (globally) 06 V.C.Funding (Details of VC and amount 07 raised to be specified) Indian Operation Investment Country of Origin Services offered from Indian Entity. Others 08 Remarks by STPI