The Software Technology Park Scheme of India is an initiative by the Ministry of Electronics and Information Technology. It basically is an Export Oriented Scheme for the Development and export of cutting-edge computer software.
The scheme is special in its own way as it is a one-of-its-kind scheme that entirely focuses on only Computer software.
Salient features and Highlights of the Software Technology Park Scheme
- Under the Software Technology Park scheme, any company can set up a STP unit in any region of India as long as it has gotten clearance
- There is 100 % foreign equity permitted with allows integration of international branding and funding
- The imports of hardware for the enhancement of the STP units are duty free and the import of second hand goods is also permitted.
- The sales in the Domestic Tariff Area are permissible up to 50% of all exports in terms of value.
- There will be 100% depreciation on capital goods for over a period of five years.
What is the eligibility for Software Technology Park Scheme
- The company wanting to set up the STP should be an Indian company
- An Indian subsidiary of a foreign company can also avail the STP scheme
- A branch office of a foreign company can also apply for the STP scheme
The government is making sure, through the Software Technology Park Scheme that there is a significant development in the computing sector in the nation. As the future of the country is digital, it only makes sense that the government has decided to make this move.