STPI seeks fiscal sops on par with SEZ tax benefits -Governance Now

STPI seeks fiscal sops on par with SEZ tax benefits

STPI DG calls for level playing field

PTI | September 30, 2010

Fearing large-scale migration of IT units from software parks to SEZs, the Software Technology Park of India, an arm of Union Information Technology Ministry, has sought fiscal benefits for STPI units on par with SEZ tax sops. "We are seeking same fiscal benefits for IT units operating in STPI as are available to SEZ units," Software Technology Park of India (STPI) Director General Omkar Rai told reporters on the sidelines of IT conclave here today. He said that the IT Ministry has also recommended for providing same fiscal sops to STPI units which can be availed by SEZ units. "Our main objective (for seeking same fiscal benefits) is to provide level playing field to IT units under STPI vis a vis with SEZ units, which will boost small companies to set up more shops," he said. Software Technology Parks of India (STPI) is a society set up by the Ministry of Information Technology in 1991 to encourage and promote software exports from India. STPI scheme mainly provides for 10-year income tax holiday, reimbursement of central sales tax and duty-free imports. The Centre has extended the STPI scheme till March 2011. Units operating in SEZ can avail 100 per cent income tax exemption on export income for the first five years, 50 per cent for next five years and thereafter 50 per cent of ploughed back export profit for next five years. Currently, 9,000 IT companies are registered under STPI in the country with total exports at Rs 2,00,000 crore so far. Asked about the pace of IT exports, Rai said that the exports from STPI grew by 5 per cent last fiscal and it would grow by at same rate this financial year also. "The main reason behind slow pace of IT exports from STPI is that the economic conditions of countries like US and Europe still have not improved enough so far. That is we feel the IT exports from STPI will grow in the range of 5 to 6 per cent in current fiscal," he said. On new initiative, Rai said STPI has decided to set up new office complex over an area of one lakh square feet in Punjab with an investment of Rs 40 crore. "Out of this, 17,000 square feet will be meant for office use and data centre while rest will used as incubation," he said.

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