Constitutional Procedures and Benefits of STPI Consultants

By: Anil Mahajan

The incessant variation in market demands and business policies through an assimilated dynamic methodology helps in directing a better sequence of business reproductions and upgraded operative execution. A highly developed business helps to enable to increase proficiency towards a positive prospect while others follow them. These high tech companies need to implement a multi-channelled approach custom-made for the customer, product and partner. This facilitates better understanding and communication between clients as well as the customer. They have to play the part of channel stewards. Marketplace, storefront, and volume channel are three very important calculated methods for management of multi-channels.

The Software Technology Park in India known as STPI are well known consultants which came into existence purely as an export-based system to assist software export by links of data communication and other bodily means such as distribution of professional services. The recent days has nothing to do manually. Rather everything is computerised. In fact, wherever we go, every entrepreneur aims in maximizing his industry profits. He thus applies the profit maximizing rule by increasing revenue of the firm and thereby decreasing the labour, capital and other costs to get the best outcome.

The following benefits are offered by STPI consultants to an industrialist.

  • 100 % foreign impartiality is allowed.

  • Approval single-window clearance scheme.

  • Power given to the Jurisdictional Directors to grant import of capital goods needed for the business, net of taxes.

  • Duty free import of software and hardware goods for the business is allowed.

  • Stipulation for importation of second-hand principal goods.

  • Facility to re-export the principal goods.

  • Local purchases made by STPI units enjoy the advantage of considered exports to the suppliers of equipment.

  • The sale of the products or services in the Domestic Tariff Area (DTA) is authorized up to 50% of the export rate.

  • Benefits such as tariff of Excise Duty and repayment of Central Sales Tax for the capital goods bought from the DTA.

  • Freedom from paying corporate income tax for a block of 10 years.

  • Permission to start call centres at different places.

  • The units are eligible for the title as International Service Export House.

  • Depreciation on the capital goods for more than five years and accelerated rate of 7% in every quarter of the first two years.

The following constitutional procedures are to be followed by the STPI:

  • Each STP unit has to maintain separate account and annual balance sheet for its operations.

  • Individual units must have individual balance sheets as a component of the primary balance sheet.

  • Submission of all export and shipping documents in the stipulated time.

  • Realizing that all proceedings shall be done in the respective branches irrespective of the place of operation where it took place.

  • Assign a single branch of designated banks to carry out transactions of that particular unit.

  • The following measures need to be undertaken in order to sustain individual accounts for individual units.

  • Maintaining records from various buyers.

  • Maintain all sales invoices.

  • Produce annual balance sheets for each unit.

  • Maintain fixed and proper registers.

  • Maintaining vouchers along with cashbook and bankbook independently.

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