India Entry & Business Startup Consultings

STPI/EOU entry and exit

STPI/EOU entry and exit

Software Technology Park Scheme is an export-related plan considering software development for export with the help of data communication or in the form of physical media consisting of export of professional services. It was set up to contribute to the success of the national economy through the promotion of exports from the Software & Services Industry by facilitating all the statutory services of the Govt. Establishing the Communication Infrastructure and by increasing the quality consciousness in the Business.

 COMPONENTS OF STP SCHEME:

  • Approvals are obtained under a single-window clearance method.
  • An STP project can be installed anywhere in India.
  • Jurisdictional Directors have the power to approve the import of capital goods, not more than US$ 20 million.
  • 100% foreign equity is allowed.
  • All the imports of Hardware & Software in the STP units are entirely duty-free, the import of second-hand capital goods also allowed.
  • Re-Export of capital goods is legalized.
  • Streamlined Minimum Export Performance norms.
  • Domestic purchases by the STP unit are entitled to the benefit of deemed exports to the equipment suppliers.
  • Projects valuing up to Rs.100 million with Indian investment & NRI funds on a non-refundable basis are cleared by local STP authorities at Centre level itself.
  • Import of Goods on loan, Free of cost & lease basis is allowed.
  • STP units are relieved from corporate income tax.
  • Net Foreign Exchange Earning as a percentage of exports (NFEP) and minimum export performance (EP) would be as follows.

Export Oriented Unit Scheme is a unique scheme under which services of Customs Act, Central Excise Act, and Foreign Trade Policy are joined and the scheme is made to offer the maximum advantage to the exporter. An EOU can import or procure capital goods (new or second hand) as well as input goods domestically without payment of duties. The only responsibility on the unit is making positive Net Foreign Exchange. EOU scheme is needed to fulfill compliances and procedures under the Customs Act, Central Excise Act, Foreign Trade Policy, and rules/laws made thereunder. We help client strategizing, forming, operating, and exist from EOU Scheme. We ensure that the Unit avails maximum eligible benefits like an exemption, refunds, duty drawback, etc. which are entitled to EOUs.

 ESSENTIALS OF EOU SCHEME:

  • No license is required for import.
  • Exemption from Central Excise Duty in obtaining capital goods, raw materials, consumables spares, etc. from the domestic market.
  • Relaxation from customs duty on import of capital goods, raw materials, consumables spares, etc.
  • Repayment of Central Sales Tax (CST) paid on domestic goods or services.
  • Supplies from DTA to EOUs are treated as deemed exports.
  • Reimbursement of duty paid on furnace oil procured from domestic oil companies to EOUs as per the rate of drawback notified by the Directorate General of Foreign Trade.
  • 100% Foreign Direct Investment permissible.
  • Exchange earner’s foreign currency (EEFC) Account.
  • Further extension of a time period can be granted by RBI and their authorized dealers.
  • Profits permissible to be repatriated freely without any dividend balancing the need.
  • Conversion of the existing Domestic Tariff Area (DTA) unit into an EOU is allowed.

How ASC Helps?

  • Regular Maintenance of Accounts, Cash & Bank book, and corresponding vouchers.
  • Maintenance of sales invoices.
  • Maintenance of Fixed Assets register.
  • Maintenance of Foreign Inward Remittance Certificate file (FIRC’s) & Bank Realisation Certificate file where the original of the FIRC’s and BRCs are kept.
  • Maintenance of contract file, where copies of contracts obtained from buyers are managed.
  • Preparation of yearly balance sheet for the unit which would eventually become a part of the balance sheet of the business.

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