In order to promote export of Software and IT services from India, Government of India has permitted setting up of tax exempt units under STPI (Software Technology Parks of India) Scheme.
STPI scheme provide Income Tax holiday as per section 10A of IT act. Custom duty exemption is available for imported capital goods like computers. Even the capital goods imported on lease or loan and imported second-hand capital goods are exempt from custom duty. Capital goods purchased from the domestic markets in India are completely exempt from excise duty. 100% depreciation in 5 years is permitted on all capital goods.
100% FDI (Foreign Direct Investment) is allowed in STPI units by ‘Automatic Route’ of RBI (Reserve Bank of India), which means foreigners can incorporate and own a tax-exempt IT company in India by availing the benefits of STPI scheme.
We provide comprehensive company formation services for the foreigners as well as resident Indians looking to incorporate a company under STPI scheme. Our services enable our clients to comply with various rules and regulations related to STPI units.
Please contact us for more details regarding setting up of tax-exempt business under STPI scheme in India.