mr. pravin arote has completed his post

2 ...thinking of Business, think ! ...thinking of Business, think !

Mr. Pravin Arote has completed his Post Graduation in Commerce. Having passion for Foreign Trade, he went on to pursue his interest and completed the Diploma in Export Management. He is having more than 35 years of experience in Foreign Trade, Accounts, Finance, HR, Taxation, Outsourcing, Management & overall administration matters. Before joining Bizsolindia, he worked with renowned corporates like Piramal, Demech

About The Author

Pravin Arote Director & CEO

Group of Companies, etc. on senior management positions, wherein he handled varied portfolio of businesses. He is currently assigned the function of Director & Chief Executive Officer of Bizsolindia Services Pvt. Ltd. With his versatile experience in various industrial segments, he is instrumental in facilitating our company achieve its goal by ensuring implementation of the policies of the organisation and keeping the value systems of the organisation intact. His experience is of great value to our customers and he is responsible for ensuring the deliverables to them by leading and managing the entire operations function across India.

His services for IT and ITES Industries has been well applauded by the Industries and therefore he has put down his experiences of knowledge sharing for IT / ITES Industry in this compendium.


ForewordI have great pleasure to write the FORWARD on the compendium on “Benefits offered to IT/ITES Industries”. Mr. Pravin Arote have actively put down his versatile knowledge and practical experience of sharing in this compendium, which not only provides the schemes of the government but further elaborates on capturing such benefits and reduction of cost and also compete in the competitive international market after taking such benefits.

Mr. Pravin Arote has also aptly provided the comparison between IT/ITES Units setting as SEZ, IT/ITES Units setting as STPI and IT/ITES Units operating as a Domestic Units either in IT Park or Operating from individual office.

It has been observed that number of IT/ITES units are not availing the benefits given by central government and various state governments. Rather some of the state benefits are granted only if such units are registered with District Industry Centre (DIC) operating under Ministry. It has been seen that number of SEZ Units, units registered under STPI generally do not register as IT/ITES with DIC and therefore, deprived of other benefits as well stated in this compendium.

I really appreciate the dedication of the author and publishing the compendium for the benefits of IT/ITES to take such benefits and become competitive in international market, so as to contribute towards growth of GDP and growth of foreign exchange remittances and achieving better bottom line. Such efforts are in line with actions of the government for achieving USD 5 trillion Economy by 2024. Of course, Bizsolindia is committed to contribute of the Journey of achieving the dream and provide services to IT/ITES in the most professional manner for the growth of IT/ITES industry.

I congratulate and also express my sincere thanks for coming out such excellent compendium on the benefits to IT/ITES Sectors.

CMA Ashok Nawal Founder


INDEXSr. No. Particulars Page No.

1 Introduction 06

What is IT-ITES 08

2 Key Definitions 09

IT Software 09

IT Hardware 09

IT enabled Services (ITES) 09

Support services / Facilities 10

Animation, Visual effects, Gaming and Comics (AVGC) 10

Data Centre 12

3 Key Policy Initiative by Government 13

4 About IT-ITES Parks 17

Incentives & Provisions for IT Parks/ IT SEZs / AVGC Parks 17

Setting up for IT Parks/ IT SEZs / AVGC Parks 18

Criteria for various parameters for setting up of private I.T. Parks 19

5 About IT-ITES Unit 21

6 Fiscal Benefits / Incentives to IT-ITES Units 21

Initiatives related to Laws for ease of doing business 25

7 Eligibility Criteria for IT-ITES Unit Registration 26

Procedure for Registration to IT-ITES Unit 26

IT Registration Certificate 27

Validity 27

Compliances under IT-ITES Registration 27

8 Procedure for availing change in Electricity Tariff & Exemption for Electricity Duty 27

Change of Electricity Tariff 27

Exemption from Electricity Duty/Refund of Electricity Duty Paid. 28


Sr. No. Particulars Page No.

9 About STP/ NSTP 29

STP 29

Scheme Benefits & Highlights - 29

Non-STP 30

Process of Registration 30

10 Compliances 31

STP Unit 31

NSTP Unit 32

11 Softex Declaration 33

Period for filing of SOFTEX Declaration 33

Documents / Information required for SOFTEX Declaration 33

Implications of Non-submission of SOFTEX Form 33

12 Payment of Service Charges by NSTP 35

13 GST Refund 36

14 Provisions of Income Tax 36

15 Comparison of SEZ-STPI & IT-ITES Units 37

16 Appendix A :Areas defined for Industrial Development for Exemptions & Incentives 39

17 Appendix B : Annexures for Registrations for IT/ITES Units 39

18 Format- Annexure IV Application for Registration for IT/ITES unit 40

Format- Annexure VIIA Format of Affidavit 41

Format- Annexure XI C.A. Certificate for the turnover of IT and non-IT products 42

Format- ELP - Form of declaration regarding employment of Local persons 43

20 Schedule A- Primary Products (IT Hardware) & Priority Intermediate Products 45

Schedule-I (A)- Priority Intermediate Products 47

21 Our Services 49


Introduction

Information Technology (IT) is playing an important role in India today & has transformed India’s image as a land of innovative entrepreneurs.

India is now one of the biggest IT capitals of the modern world and all the major players in the world IT sector are present in the country. Information technology sector has placed India on the global map & is the most significant growth contributors for the Indian economy.

Indian Information Technology (IT) / Information Technology Enabled Services (IT/ITeS) industry is a global powerhouse today, and its impact on India has been incomparable. It has contributed immensely in positioning the country as a preferred investment destination amongst global investors and creating huge job opportunities in India, as well as in the USA, Europe and other parts of the world. The talent of this sector is recognised globally.

India is the topmost off-shoring destination for IT companies across the world. Having proven its capabilities in delivering both on-shore and off-shore services to global clients, emerging technologies now offer an entire new gamut of opportunities for top IT firms in India. Indian IT-ITeS industry offers cost-effectiveness, great quality, high reliability, speedy deliveries and, above all, the use of state-of-the-art technologies globally.

The Ministry of Electronics and Information Technology is coordinating strategic activities, promoting skill development programmes, enhancing

Benefits Offered To Information Technology (IT) / Information Technology Enabled Services (ITES)


infrastructure capabilities and supporting R&D for India’s leadership position in IT and IT-enabled Services.

Over the years, a large number of initiatives have been undertaken by various State Governments and Central Ministries to help in an era of e-Governance & accordingly efforts have been made at various levels to improve the delivery of public services and simplify the process of accessing them.

E-Governance in India has steadily evolved from computerization of Government Departments to initiatives that encapsulate the finer points of Governance, such as citizen centricity, service orientation and transparency.

The Government of Maharashtra has recognised IT industry as an important thrust area in the State. It is largely focusing on providing IT related infrastructure, fiscal incentives to IT units, IT in governance and institutional framework for the IT sector. These initiatives have enabled the IT industry of the State to establish a firm foundation for itself in the country. Besides, the State Government has framed an IT policy so as to make Maharashtra the most favoured destination for investments in the IT and ITES industry.


What is IT-ITES?Information Technology (IT) means creating, managing, storing and exchanging information using all types of technology to deal with information.

Information Technology (IT) is one of the world’s fastest growing economic activities, which envisages easier flow of information at various levels in the desired pattern through electronic media. It is also the study of design, management, development, implementation, and support of computer-based information systems, typically about computer hardware and application

ITeS: Information Technology that enables the business by improving the quality of service is Information Technology enabled Services (ITeS).

ITeS is also an outsourcing of processes that can be enabled with information technology and covers various areas like HR, Administration, Finance, Manufacturing, Telecommunication etc. equipped with technology and manpower, these services are provided from e-enabled locations. This drastically reduces costs and improve service standards at all the levels. ITeS is a part of Information Technology & is the study of outsourced service which has arisen due to involvement in various fields of IT such as banking and finance, BPO, call centres, etc

“IT-enabled services” are those services that have been transformed by information and communications technology, enabling them to be digitized, codified, and fragmented and therefore able to be undertaken at any distance from the core business and final customer. These services include those often associated with offshoring, including accounting, financial analysis, call-center services, architectural drafting, and health-record transcription, among other services activities

http://itlaw.wikia.com/wiki/Information_technology

http://itlaw.wikia.com/wiki/Communications_technology

http://itlaw.wikia.com/wiki/Digitize

http://itlaw.wikia.com/wiki/Core_business?action=edit&redlink=1

http://itlaw.wikia.com/wiki/Offshoring


Key Definitions as per Maharashtra IT/ITES Policy 1.IT Software:

IT Software is defined as any representation of instruction, data, sound or image, including source code or object code, recorded in machine readable form and capable of being manipulated to providing interactivity to a user with the means of a computer.

2. IT Hardware:

IT Hardware covers products as notified by Directorate of Industries from time to time. An indicative list is at Schedule A.

3. IT Enabled Services (ITES):

IT enabled services will be as specified by the Central Board of Direct Taxes (CBDT) under Rule 10TA of the Income Tax Rules, 1962 and as decided by Government from time to time and are as below.

I. Back-office Operations;II. Call Centres or Contact Centre Services.

III. Content Development or Animation.IV. Data Processing or data miningV. Engineering and Design.

VI. Geographic Information System Services.VII. Human Resource Services.

VIII. Insurance Claim Processing.IX. Legal Databases.X. Creation of maintenance of Medical Transcription Excluding

adviseXI. Payroll.

XII. Remote Maintenance.XIII. Revenue Accounting.XIV. Support Centres.


XV. Website Services.XVI. Translation Services,

XVII. Data Search integration & analysis,XVIII. Remote Education excluding education Content Development,

Clinical database Management-Services Excluding Clinical trials but does not include any research and development services whether or not in the nature of contract research and development services

4. Support Services / Facilities:

Support services means services provided in relation to conduct of IT / ITES business, which shall exclude –

I. Malls II. Cinema theatres, public auditoriums and multiplexes III. Residential apartments for sale to public IV. Showrooms for all types of merchandize except computers and

IT related hardware and software V. Hospitals, nursing homes more than 10 beds VI. Schools, colleges, training institutes (except IT/ITES training

institutes) and hostels related to them

The support services admissibility defined above will also be applicable to existing IT parks.

5. Animation, Visual effects, Gaming and Comics (AVGC):

• Animation is a way of making a film by using a series of drawings, computer graphics, or photographs of two and three dimensional objects (such as puppets, clay models or paper cut-outs) that are slightly different from one another and that when viewed quickly one after another create the appearance of movement. Animation shall include 2D Animation, 3D


Animation, Claymation, paper animation, stop motion, shadow animation, hard surface animation etc., Animations can be recorded on either analogue media, or on digital media.

• Visual effects are the processes by which imagery is created and / or manipulated outside the context of a live action shot. Visual effects involve the integration of live-action footage and generated imagery to create environments which look realistic, but would be dangerous, expensive, impractical, or simply impossible to capture on film. Visual effects include computer generated imagery using the affordable and user-friendly animation and compositing software.Visual Effects shall include Rotoscopy, Digital Clean-up, VFX paint, morphing, DMP - (Digital Matte Painting), Chroma key, Compositing, Tracking, pre-visualization, Prep-wire removal, beauty pass, face & body replacement, Modelling, shedders, texturing, lighting, animation, Rigging, Match move, FX(cloud, liquid, rain, water, dust, smoke, wind, fire, flame, blast, snow, ice, etc) Particle simulation, Simulation - (Fur, hair, Cloth, crowd, destruction, etc), Background & Set creation and extension, Digital environment creation, miniatures for VFX, Image processing, Digital Imaging (DI), Colour correction etc.

• A game is an electronic game that involves human interaction with a user interface to generate visual feedback and immersive experience on a device which shall include 2D, 3D, video, handheld devices, mobile, virtual, console etc.

• Comics is a visual medium used to express ideas via images, often combined with text, voice, sound or


visual information. Comics shall include hand drawing, digital, 2D, 3D, motion graphics, motion comics.

• Stereo conversion is a specialised process in animation post production where the normal 2D or live action films are converted to stereoscopic form for an immersive experience. Stereo conversion shall include Rotoscopy, layer painting, depth grading, tracking, element compositing, finalling, edging, particles etc.

Virtual reality, Augmented reality, Motion Capture, facial capture & Performance Capture, 3D printing, 3D mapping, Simulation, Digital streaming & Content dissemination, Rendering etc. shall be a part of AVGC.

6. Data Centre:

A Data Centre is a facility used to house computer systems and associated components, such as telecommunication and storage systems. It also includes power supplies, data communication connections, environmental controls (e.g. air conditioning, fire suppression) and security devices. The value chain comprises of a mix of segments including real estate and construction, hardware equipment, utilities (power, water, cooling), networking and software and services.

IT Units are defined to include IT hardware and telecom hardware manufacturing units, IT enabled Services (ITES), and software industries including services. AVGC units shall be classified as ITES.


Key Policy Initiative by Government:

The Government of Maharashtra has Announced of “Maharashtra’s Information Technology/Information Technology Enabled Services Policy (IT / ITES) -2015, though the validity of policy is of 5 years, but still as on date of this compendium said policy is operational till Government of Maharashtra announce new IT-ITeS Policy.

The parks / units which have been sanctioned benefits / incentives under this policy, shall continue to enjoy the benefits for a period for which the benefits / incentives are sanctioned even if the policy period is over.

Key Policy Initiatives:

A. Incentives & provisions for IT Parks / IT SEZs / AVGC Parks

B. Incentives & provisions for IT / ITES Units

C. Promotion of Audio-Visuals-Gaming and Comics (AVGC)

D. Promotion of Business Process Outsourcing (BPO) ventures in rural and semi-urban areas

E. Promotion of Data Centres

F. IT Incubation Facility

G. Promotion of green IT

H. Promotion of Brand Maharashtra

I. Initiatives related to Laws for ease of doing business

J. Human Resource Development

K. Administrative Measure


A) Incentives & provisions for IT Parks / IT SEZs / AVGC Parks:

The Government of Maharashtra has declared following incentives & provisions through the policy; .

• Additional FSI and space utilization, • Establishment of Integrated IT Township (IITT) • Electricity Tariff on Industrial Rate, • Electricity Power/ Sub Station at Minimum 6 watt per Sq. ft. • Development of Infrastructure by Creation of Critical

Infrastructure Fund

More about IT Park is elaborated separately

B) Incentives & provisions for IT / ITES Units:

The Government of Maharashtra has declared following fiscal incentives through the policy; which broadly includes;

• Stamp Duty Exemption, • Electricity Duty Exemption, • Subsidised Electricity Tariffs, • Power Tariff Subsidy, • Property Tax Benefits, • Works Contract Tax Benefits

More about fiscal benefits are elaborated separately.

C) Promotion of Audio-Visuals-Gaming and Comics (AVGC):

• It is a sunrise sector having vast potential for wealth creation and employment generation.

• It is a healthy medium of education and entertainment. • It has a rich and diverse heritage of art and culture and strong

presence of Information Technology and Entertainment Industry.


• This policy focuses on bridging the demand-supply gap for people in this sector, attracting global companies in the field, capturing a larger share of outsourced international AVGC work, and facilitating a legal framework for Intellectual Property creation and protection.

D) Promotion of Business Process Outsourcing (BPO) ventures in rural and semi-urban areas:

This policy will leverage Information Technology,

• As a tool for the socioeconomic development of the state and encourage existing BPO units/entrepreneurs to set up their branches/BPOs in rural / semi-urban areas.

• The subsidy would be provided only for business processing units that are located in rural / semi-urban areas (village Panchayat, A,B and C class Municipalities) i.e. Capital Subsidy, Training Subsidy, Exemption from Payments of Security Deposit / Earnest Money Deposit etc.

E) Promotion of Data Centres

• Data centres are the basic infrastructure for the new digital economy. Reliable data centre offering over 99.95% uptime are necessary for the growth of the digital world services.

• The Data Centres will be covered under Essential Services and Maintenance Act (ESMA) as an essential service considering the nature and importance of operations involved which cannot be interrupted.

F) IT Incubation Facility

• The Government will facilitate the establishment of a common platform for exchange and dissemination of knowledge resources between academic and research institutions and the IT industry and the setting up of incubation centers particularly for small


enterprises.

G) Promotion of Green IT

To ensure growth of the IT sector in an environmentally sustainable and responsible manner.

• Awards to IT Unit for demonstrating, efficient natural resource management.

• Promoting the development of comprehensive e-waste collection and recycling systems and their use by the State as well as private agencies for the disposal of IT products.

H) Initiatives related to Laws for ease of doing business

The initiatives proposed in the policy are elaborated separately

I) Human Resource Development

• Special emphasis has been given to the development of human resources for the IT industry, particularly in new area of high potential.

J) Administrative Measures

• Applications for permission for Right of Way for laying of cables and for erection of towers and antennae would be approved within 30 working days provided the application is in the prescribed format and contains required documentation.


About IT-ITES Parks: -IT Park has proved to be an effective tool to develop IT sector by providing adequate quality infrastructure to cluster of IT / ITES units. Government of Maharashtra encourages Public as well as Private IT Parks throughout the state. This policy will continue with following incentives & provisions.

Incentives & Provisions for IT Parks/ IT SEZs / AVGC Parks

• The availability of land is decreasing, and the cost of land is constantly increasing which is leading to high cost of built up space.

• The high cost of space is proving to be a hindrance to the growth of IT Industry.

• To provide built up space at affordable rates to the entrepreneurs more additional FSI over the base FSI shall be admissible.

i) Additional FSI and space utilization of IT Parks which have been approved by the Directorate of Industries set up under present and previous IT / ITES Policies

ii) Establishment of Integrated IT Township (IITT)

iii) Electricity Tariff: Power consumed will be charged at industrial rate for the common facilities in the IT Park (such as lobbies, central air conditioning, lifts, escalators, effluent treatment plant, washrooms etc.)

iv) Electricity Power/ Sub Station: Provision of electric power / substation at minimum 6 watt per sq. ft. of total built up area of IT Park will be essential. This provision will also be applicable to existing IT parks.

v) Incentives for Development of Infrastructure: Creation of Critical Infrastructure Fund for IT/ITES Industries:

State Government & Planning Authorities shall create a separate


fund viz. “Critical Infrastructure Fund for IT/ITES Industries” from the premium paid for availing additional FSI by the Developers of the Private IT Parks as envisaged in Para 5 (A) (i) (ii) of this policy. And this fund shall be utilized only for Creation of Critical Infrastructure for IT/ITES Industries

Setting up for IT Parks/ IT SEZs / AVGC Parks

Organizations establishing the private I.T. Park can be Registered proprietorship/ Partnership Firm/ Private Limited Company/ Public Limited Company/Co-operative Society or Trust.

The Institute legally responsible for management of the Park, Promoter or Developer of the Park will be eligible for making Application for complying with the prescribed Criteria, Terms & Conditions for the I.T. Park.


Criteria for various parameters for setting up of private I.T. Parks

Sr. No.

Parameter for Infra-structure Facilities

Criteria

1. Built up Area Min. built up area of 20,000 sq.ft. will be essential in-cluding Additional FSI & TDR.

2. Utilization/Use of built-up Area

Public and Private IT Parks/AVGC Parks in:-

Pune, Pimpri-Chinchwad, Greater Mumbai, Thane, Navi Mumbai, Kalyan-Dombivali, Mira-Bhayan-dar, Ulhasnagar municipal corpora-tions and Ambernath municipal council area BUA is permitted for IT/ITES and

BUA (excluding parking area) will be permitted for support services.

M a x . 80%

M a x . 20%

Areas other than above mentioned municipal corporations and munici-pal council BUA is permitted for IT/ITES and

BUA (excluding parking area) will be permitted for support services.

M a x . 60%

M a x . 40%

3. Arrangement for supply of Electricity and Capacity

A sub-station for electric supply will be set up inside the compound of the I.T. Park having capacity to supply at the rate of 6 watt/sq. ft for the total built up area. It is necessary to provide supply to the I.T promoter through Dedicated Distribution Feeder from the nearest source of the Electricity Distribution Company providing power to the sub-station.


Sr. No.

Parameter for Infra-structure Facilities

Criteria

4. Arrangement for Stand-by Supply

It will be mandatory for the promoter to make arrange-ment for stand-by generation to the extent of minimum of 30% of the total power requirement determined in Sr, No. 3 above.

5. Connectivity 1. If the satellite earth station is available for the I T. Park, no limit on capacity of connectivity is applicable. Otherwise it will be essential to provide minimum OFC connection of 2 mbps capacity.

2. It is not necessary to establish an exchange inside the Park for providing double connectivity. However, there should be arrangement in the Park to provide Last Mile Connectivity and Gateway for International Con-nectivity.

6. Parking Capacity It is necessary to provide parking space inside the park for one vehicle per 100 sq.m. of the total built up area of the I.T. Park.


About IT/ITES Unit:IT Units are defined to include IT hardware and telecom hardware manufacturing units, IT enabled Services (ITES), and software industries including services. Audio-Visuals-Gaming and Comics (AVGC) units shall be classified as ITES.

Fiscal Benefits / Incentives to IT-ITES Units:-

All the fiscal incentives proposed in the policy are as under;Sr. No.

Type Incentive Eligible to Eligible for

i) Stamp Duty Exemp-tion

100% Stamp Duty exemption

Hypothecation, pawn, pledge, deposit of title deeds, conveyance, charge on mortgage property, lease, mortgage deed and security bond on mortgage deed.

New IT/ITES units and expan-sions of the existing units in C, D, D+, No Industry district areas and Naxalism affected areas of the State


Hypothecation, pawn, pledge, deeds, convey-ance and lease.

New IT/ITES units and expan-sions of the existing units in public IT parks, IT Hardware and Telecom Hardware Manu-facturing SEZs in A and B areas.


Hypothecation, pawn, pledge, deeds, conveyance, lease, and public assignment lease.

New IT/ITES units and expan-sions of the existing units in public/private IT parks (includ-ing IT hardware and Telecom hardware manufacturing units), private IT parks in SEZs, IT SEZs, in A and B areas


Hypothecation, pawn, pledge, deeds, conveyance, lease, and public assignment lease.

New IT/ITES units and expan-sions of the existing units in IT parks in SEZs, IT SEZs (includ-ing IT hardware and Telecom hardware manufacturing units), and STPI approved registered units in A and B areas


Sr. No.


75 % Stamp Duty exemption

Assignment leases of IT / ITES units under section 60 and leave and licenses of IT / ITES under section 36 A of the Bombay Stamp Act 1958 (to be read with a, b and c above)


on merger, de-merger and reconstruction of registered IT / ITES units throughout the State.

For the units seeking stamp duty exemption under this policy, it will be essential to verify whether the unit under consideration has availed /not availed any stamp duty exemp-tion, under any other Policies of Government of Maharashtra.

It will be compulsory to submit a NOC from the Competent Authority of Industries Depart-ment in this regard.

ii) Elec-tricity Duty Exemp-tion

period of 10 years

New IT / ITES units regis-tered with the Directorate of Industries will be exempt from payment of Electricity Duty from the date of commencement of produc-tion / activity

Units in private IT parks (in-cluding IT hardware and Tele-com hardware manufacturing units), in A and B areas

period of 15 years

in other areas of the State classified as per the prevail-ing Package Scheme of Incentives at the time of commencement of produc-tion / activity of the unit.

The Electricity Duty would be exempt for IT parks developed by IT companies for their own use, i.e. single unit parks for the period mentioned above except for the support services.


Sr. No.


Permanent Exemption

New IT/ITeS units in SEZ, IT parks in SEZ’s, Units registered under STPI

Electricity Duty will be exempt-ed permanently

iii) Elec-tricity Tariff

Industrial Rate

Unit will be supplied power at industrial rates as against commercial rates applicable under Maharashtra Electric-ity Regulatory Commis-sion’s (MERC’s) tariff or-ders.

IT/ITES units registered with the Directorate of Industries

iv) Power Tariff Subsidy

power tariff subsidy for 3 years @ Rs. 1/- per unit consumed from the date of registration of the IT Park with the Directorate of Industries after commence-ment of IT/ITES activity OR equal to the investment made in IT Hardware on the date of registration of the unit with the Directorate of Indus-tries, whichever is lower.

The units in IT SEZs and IT parks in SEZs in these areas shall also be entitled for this subsidy.

v) Proper-ty Tax

Property tax shall be levied on IT / ITES units at par with residential rates as applicable in the relevant jurisdictions.

Government will issue necessary advisory to the local bodies to give this ben-efit to the IT / ITES units.

IT / ITES units registered with the Directorate of Industries.


Sr. No.


vii) Works Con-tract Tax

Works contract tax on annual maintenance agree-ments of IT / ITES units shall generally be charged at the minimum rates recom-mended by the relevant Empowered Committee, at the centre, barring certain exceptions.

Registered IT / ITES units

viii) Set-ting-up IT/ITES units in any zone

IT / ITES units (except IT hardware and Telecom Hard-ware Manufacturing Units) will be allowed to be set up in any zone (including residential and no-development zones, etc.).

x) Contin-uous Indus-try Status

The IT / ITES Industry services clients across the globe and in different time zones.

This requires the Industry to work on 24x7x365 mode. In-creasingly the work done by IT / ITES industry is mission critical for global clients it serves and very tight deadlines are required to be adhered to. Considering this a continuous industry status shall be granted to the registered IT / ITES units. The IT / ITES Industry will be permitted to work 24x7x365 days without any close down (except some exigencies arising wherein the State / Central Government thinks it fit to keep the operation in suspension).


Initiatives related to Laws for ease of doing business: IT / ITES Units will continue to benefit from:

a) Relaxation under the Shops and Establishment Act with regard to working hours, work shifts and employment of women.

b) Exemption from maintaining physical records for attendance and salary.

c) Option for self-certification and filing of consolidated annual returns under 13 Acts administered by the Labour Department.

ii) Provision for IT / ITES units to maintain employee-related records required under various labour laws in electronic form, and acceptance of returns in electronic form will be made in line with the progress of computerization in the Labour Department.

iii) IT/ITES units –

• not discharging process effluent and • employing less than 100 employees will be exempt from

obtaining consent from MPCB. • Such unit will be required to submit annual statement to

MPCB on disposal of wastes including electronic wastes, used batteries, and used oil.

The registration of such units by the Directorate of Industries Department will incorporate specific conditions for this purpose.

These units will also have to be connected to local sewage network.

iv) Relaxations under the Contract Labour Act which have been approved for units in SEZs will be considered for all IT / ITES units outside also.

v) IT / ITES units (other than IT hardware and Telecom hardware


manufacturing units) will be treated as continuous process units for the purposes of power supply.

vi) The Development Control Regulation (DCR) including of MIDC and other guidelines for establishment of IT parks including in MIDC area shall be in consonance with the IT / ITES policy.

Eligibility Criteria for Registration to IT-ITES Unit: • Annual turnover of IT Software/IT Enabled products shall always

exceeds 75% of the total annual turnover of the Unit. • Employment of local persons in Supervisory category shall not

be less than 50% , while in other categories including Supervisory Category shall not be less than 80%

• Unit should have Udyog Aadhar / IEM.

Procedure for Registration Certificate to IT-ITES Unit :Application to The Jurisdictional Authorities of District Industries Centre in proscribed formats:

• Annexure - IV : Registration for IT/ITES unit in Prescribed Format

• Annexure - VIIA : Affidavit on Rs.100/- Stamp Paper () ( Duly Notarized)

• Annexure – XI : C.A. Certificate regarding turnover for last 3 years financial years of IT Software

(*New establishment shall submit proposed turnover duly certified by the statutory auditor)

• ELP 1 : Details of Unit & Employee


IT Registration Certificate: 1. Provisional Registration Certificate will be granted after scrutiny of

application for 3 Months. 2. Final Registration Certificate will be issued for 3 years.

Validity: 3 years from the date of issue a Registration Certificate

Compliances under IT-ITES Registration: • Annual Declaration: Unit has to submit annually employment of local

person in prescribed format (ELP-1) along with Turnover Certificate for 100% of IT-ITES Turnover duly certified by an independent chartered Accountant in prescribed format.

• Amendment in Registration Certificate: Any changes in Business Location, Investment, Constitution, IT/ITES Services, etc. If any.

Procedure for availing Change in Electricity Tariff & Exemption for Electricity Duty -Change of Electricity Tariff

• Application to The Assistant General Manager (F & A), Maharashtra State Electricity Distribution Co. Ltd. along with copy of Order issued by Maharashtra Electricity Regulatory Commission against Petition by MSEDCL for applicability of Tariff Rate to the IT Industries & IT Enabled Services, Valid IT-ITES Registration enclosed with Constitutional evidences of IT Industries ( i.e. LOP & Eligibility Certificate duly issued by The Dev. Commissioner, SEEPZ or the Director, STPI / CIN/IEM etc.


Exemption from Electricity Duty/ Refund of Electricity Duty Paid.

• Application to the Assistant General Manager (F & A), Maharashtra State Electricity Distribution Co. Ltd. along with copy of Order issued by Maharashtra Electricity Regulatory Commission against Petition by MSEDCL for applicability of Tariff Rate to the IT Industries & IT Enabled Services: a. Valid IT-ITES Registration enclosed with Constitutional

evidences of IT Industries ( i.e. LOP, Eligibility Certificate / Services duly issued by The Dev. Commissioner, SEEPZ or the Director, STPI / Copy of Intimation for Commencement of Production/ Memorandum of Association, Articles of Association, Certificate of Incorporation/IEM etc.

b. Copy Notification issued by the Industries, Energy and Labour Department, Mumbai.

c. Form Fd. Copy of online application for ED Exemptione. Statement of Electricity Bills for the period against which

Electricity Duty paid & refund requested.f. Copies of Electricity Bills.

Above both requests scrutinised & Approves by The Jurisdictional Superintending Engineer of M/s. MSEDCL on ground of Approved Electricity Load & Actual Consumption.

ED Exemption & Refund can be granted with retrospective effect from the date of Commencement.


About Software Technology Park (STP) & / Non STP: - STP :

The STP Scheme is a 100% export-oriented scheme for the development and export of computer software, including export of professional services using communication links or physical media.

As a unique scheme, it focuses on one sector, i.e. computer software. The scheme integrates the government concept of 100% Export Oriented Units (EOU) and Export Processing Zones (EPZ) and the concept of Science Parks/Technology Parks, as operating elsewhere in the world. The unique feature of the STP scheme is the provisioning of single-point contact services for member units, enabling them to conduct exports operations at a pace commensurate with international practices.

Scheme Benefits & Highlights: -

a) Approvals are given under single window clearance system.b) A company can set up STP unit anywhere in India.c) Jurisdictional STPI authorities can clear projects costing less

than Rs.100 million with Indian Investment.d) 100% foreign equity is permitted.e) All the imports of Hardware & Software in the STP units are

completely duty free, import of second-hand capital goods are also permitted.

f) Re-export of capital goods is also permitted.g) Simplified Minimum Export Performance norms i.e., “Positive

Net Foreign Exchange Earnings”.h) Use of computer system for commercial training purposes is

permissible subject to the condition that no computer terminals are installed outside the STP premises.

i) Sales in the Domestic Tariff Area (DTA) shall be permissible up


to 50% of the export in value terms.j) The capital goods purchased from the DTA are entitled for tax

benefits.k) Capital invested by foreign entrepreneurs, know-how Fees,

royalty, dividend etc., can be freely repatriated after payment of Income Taxes due on them, if any

l) The items like computers and computers peripherals can be donated to recognized non-commercial educational institutions, registered charitable hospitals, public libraries, public funded research and development establishments, organizations of Govt. of India, or Govt. of a State or Union Territory without payment of any duties after two years of their import.

m) 100% Depreciation on Capital Goods over a period of five years.

Non-STP

Any company/partnership firm/proprietorship which is into development of Export oriented Computer Software/IT Enabled Services can register itself as NON-STP unit under STPI to avail Softex certification.

The company registered under STPI as NON-STP unit will be issued a Registration Certificate with a validity of 3 years by the respective jurisdictional STPI Director. Renewal of registration will have to be applied three months prior to the expiry of the registration.

Process of Registration: -

Application for Registration must be for the export of Software Technology and Software Products from India.

The following procedure has to be considered for an application when making an application for registering an STP unit in India. Online Registration facility against payment of Application Processing Fees.

• Creation of User ID & Password on STPI Web Portal.


• File an application with required details & Declaration. • Upload self-certified copies of necessary Registrations under various

Acts & other Company related documents. • The fees must be paid by the applicant.

Fees of STP Registration of Rs. 2,500/- + GST, must be paid by mode of NEFT/ RTGS. This fee would only include the charges related to processing the application for STPI registration under Software Technology Parks of India. Fees of Non-TP Registration of Rs. 1,000/-+ GST must be paid by mode of NEFT/ RTGS. This fee would only include the charges related to processing the application for STPI registration under Software Technology Parks of India.

• Application must be submitted by the applicant to the Director, Software Technology Parks of India, Pune for STP unit registration process.

For necessary Registrations under various Acts, Documents & Information required as per Check List.

Compliances: -

STP Unit:

• Monthly Reports- Progress of the completion must be submitted by the 7th of every month after completion of the previous month.

• Quarterly Reports- Units are also required to submit quarterly reports to comply with the requirements of STPI units.

• Annual Performance Reports- Performance reports and progress of the STPI also have to be submitted as per the requirements.

• Accounts- Bank accounts have to be held separately. This would be for a unit that has international activities and domestic activities. Though the principle of separate legal entity prevails, still there has


to be some form of process related to separation of units. • Foreign Exchange Compliance- Annual Compliance related to

foreign exchange also must be provided by the applicant.

NSTP Unit

• Annual Performance Reports-

Performance reports and progress of the STPI also have to be submitted as per the requirements.


Softex Declaration:As per RBI Guidelines Softex Declaration is mandatory to the IT / ITES units registered with the Directorate of Industries for their Software Exports to the online submission through the below mentioned Authorities:

1. Registered IT Units established in Public and Private IT/ITES Parks, stand-alone IT/ITES units should obtain Letter Of Permit from The Director, Software Technology Parks from their Jurisdiction.

1a. IT enabled services Units (ITES) obtain Letter Of Permit under Non STP Unit (NSTP) from The Director, Software Technology Parks from their Jurisdiction.

2. IT SEZs or IT Parks in SEZs should obtain Letter Of Permit from The Development Commissioner, Jurisdictional Special Economic Zones ( i.e. SEEPZ, KASEZ, SIPCOT etc. )

Period for filing of SOFTEX Declaration:

Within 30 days from the last Software invoice issued (of previous month)

Documents / Information required for SOFTEX Declaration:

• Details of STP/NSTP Registration • Letter for Softex Number issued by RBI. • Scanned copy of Software Invoices duly signed electronically. • Scanned copy of Agreements with Foreign Receiver of IT/ITES

Services / Purchase Orders duly signed electronically. • Scanned copy of Invoices from Data Service Provider duly signed

electronically.


Implications of Non-submission of SOFTEX Form

• It will be considered as violation of Foreign Exchange Management (Export of Goods and Services) Regulations, 2015.

• It will attract penal proceedings under Section 13(1) FEMA and accordingly, penalty up to thrice the sum involved in the contravention can be imposed.

• The DTA Unit may also be subjected to continuous penalty which may extend to INR 5,000 for every day after the first day during which the contravention continues.

• Entities engaged in exports are entitled to claim refund of the input GST paid on inputs and input services received for undertaking exports. In order to process these refund claims, the concerned tax authorities may ask to submit SOFTEX forms for the purpose of processing of such refund claims. Non-submission of said forms may lead to rejection of the refund claims.

• In case exporter has not filed for SOFTEX certification within time limits and exports proceed is obtained, the remittance received is treated as ‘general services’ or not as an export proceed. Which effects on the other benefits initiated for IT-ITES Company & this will act as disincentive to the business entities in claiming that they have previous export performance.

• Also, they may disqualify for participation in tenders related to software projects which was announced on the basis of performance of Software Exports.

• In addition, the Bank could also freeze an account, in case SOFTEX forms are not filed on time.


Payment of Service Charges by NSTP:

The service charges payable annually are mentioned as under of the basis of Export Turnover of previous year , which is debited after submission of each SOFTEX Declaration. if, it is not sufficient for further Softex Declarations unit must have to pay further charges on Projected Export Turnover.

S No Export Turnover for the Year Annual Services Charges (INR)1 Up to 12.5 lakhs INR 4,0002 Above 12.5 lakhs to 25 lakhs INR 8,0003 Above 25 lakhs to 50 lakhs INR 16,0004 Above 50 lakhs to 3 Cr INR 55,0005 Above 3 Cr to 10 Cr INR 1,10,0006 Above 10 Cr to 25 Cr INR 2,25,0007 Above 25 Cr to 50 Cr INR 2,50,0008 Above 50 Cr to 100 Cr INR 3,50,0009 Above 100 Cr to 500 Cr INR 5,75,000

10 Above 500 Cr to 1000 Cr INR 6,00,00011 Above 1000 Cr INR 6,50,000


GST Refund

Exports and supplies to SEZ units and SEZ developers are zero-rated in GST. Zero-rating effectively means that no tax is payable on exports but the exporter/supplier is entitled to the input tax credit on inputs/input services used in relation to exports. The exporters

have two options for zero rating, which are as follows:

(1) To pay integrated tax on supplies meant to be exported and get refund of tax so paid after the supply is exported.

(2) To make export supplies under a bond or letter of undertaking and claim refund of taxes suffered on inputs and input services in relation to such exports.

Provisions of Income Tax

There are no specific provisions under the Act that specifically deals with the taxability of income arising from software related transactions. The taxability of income in relation to software arising in an international transaction is governed by general taxation principles, concepts and provisions of the Act.

Sr. No.

SEZ STP DTA

1 Section 10AA: >100% exemption for first 5 years on Export Earnings > 50% exemption for next 5 years > 50% exemption for next 5 years, provided that the 50% of the Profit earned is reinvested in next 3 years. These benefits will be available to only those units which commence commercial production on or before 30th Sept 2020. For the units who has obtained the LOA prior to 31.03.2020 for new units setup after 31.03.2020. No deduction available w.e.f. AY 2021-22 MAT Applicable

Exemption from Income Tax is not available

MAT is applica-ble

Exemption from Income Tax is not available

MAT is applica-ble


Comparison of SEZ/ STPI/ IT/ITES Units

SN CRITERIA SEZ STPI IT-ITES

1 Eligibility A SEZ unit can be set up anywhere in India after fulfilling the following requirements. According to SEZ Act 2005

Organizations establishing the private I.T. Park can be Registered proprietorship/ Partnership Firm/ Private Limited Company/ Public Limited Company/Co-op-erative Society or Trust who does IT/ITES exports through Data communica-tion links.

Registration under STPI as a NON-STP unit is manda-tory for any compa-ny who does IT/ITES exports through Data com-munication links.

2 Approving Authority

Development Commis-sioner, SEZ

Director STPI. Dy Director, DIC

3 Location Notified Special Econom-ic Zone by Ministry of Commerce

Any location Any location

4 Investment Criteria

No limit Investment minimum of Rs.1 crore in plant and ma-chinery, however no crite-ria for conversion of exist-ing units.

No criteria

5 Conversion to any Scheme

Allowed Allowed Allowed

6 Export Perfor-mance

Should earn positive Net Foreign Exchange in block of 5 years

Should earn positive Net Foreign Exchange in block of 5 years

The Annual Turn-over of IT/ITeS ser-vices should be in excess of 75% of Annual Turnover of the Unit.

7 Net Foreign E x c h a n g e (NFE)

Positive NFE Positive NFE. No such restrictions

8 C u s t o m Duty

Upfront exemption from Custom Duty on all type of goods required for Au-thorised operation.

Exemption is available for Basic Customs Duty, cus-toms cess & IGST up to 31st March 2022 under Import of Goods under Conces-sional Rate of Duty (IG-CRD)Rules 2017. Exemption of Basic Cus-toms Duty and customs cess. IGST needs to be paid after 31st March 2022 but ITC is available

No Exemption is available however an IT/ITES units are eligible for re-fund on IGST por-tion out of Total Custom Duty paid


SN CRITERIA SEZ STPI IT-ITES

9 Indigenous P r o c u r e -ment

Upfront exemption from GST on all type of goods and services required for Authorised operation.

On payment of IGST / CGST + SGST and subse-quent availment of input tax credit Refund of GST paid will be entitled either to the sup-plier or EOU Unit.

On payment of IGST / CGST + SGST and subse-quent availment of input tax credit. However refund of GST paid is avail-able.

No Refund is available on Capital Goods under sec-tion 17 (5) of CGST Act 2017

No Refund is avail-able on Capital Goods under sec-tion 17 (5) of CGST Act 2017

10 C u s t o m Clearance

Single window clearance, Bill of Entries are assessed at respective SEZ only.

Customs Clearance at Special Economic Zone.

Customs Clearance at the port of import - superficial examination w.r.t. marks and numbers. Bill of entries are filed port of import fol-lowing the formalities of Import Certificate from STPI authorities & IGCRD

Customs Clearance at the port of im-port - superficial examination w.r.t. marks and num-bers, Bill of Entries are filed at port of import through EDI System.

11 GST on Ser-vices

Services for authorised operations are exempted from payment of GST

GST to be paid and eligible credit to be availed

GST to be paid and eligible credit to be availed

12 Stamp Duty Exemption is available as per state government poli-cy

Exempted only on Immov-able Properties

Exemption is avail-able as per state government policy

13 Electricity Duty

Permanent Exemption Permanent Exemption 10 Tears

14 L a b o u r Laws

Labour reforms are appli-cable, subject to State Government Policy

Labour reforms are not ap-plicable

Benefits are avail-able to IT/ITES units under Initia-tives related to Laws for ease of doing business.


Appendix A : Areas defined for Industrial Development for Exemptions & Incentives

Sr. No. Group District/Cities

1 A (Developed areas) Mumbai, Pune, etc.

2 B (Less developed than A) Albaugh, Dahanu, Nashik, etc.

3 C (Less Developed than B) Bhiwandi, Ratnagiri, Baramati, etc.

4 D (Less developed than C) Aurangabad, Satara, Nagpur, etc.

5 D+ ( Less developed than D) Paithan, Barshi, Kagal, etc.

6 No Industries Exist Gadchiroli, Hingoli, etc.

7 Areas affected by Naxalism Gondia, Kinvat, Chandrapur, etc.

Appendix B:

Annexure Description Remark

Annexure - IV Application for Registration for IT/ITES unit Format given separately

Annexure - VIIA Affidavit on Rs.100/- Stamp Paper (Duly Notarized) Format given separately

Annexure – XI C.A. Certificate regarding turnover for last 3 years financial years of IT Software Format given separately

ELP 1 Details of Unit & Employee Format given separately


ANNEXURE – IVApplication for Registration is made to the Registering Authority for

existing Software / IT Enabled Service unit.

1. Name of Unit / Applicant :

2. a) Address for communication :

b) Telephone No. :

c) Fax No. :

d) E-mail address :

3. (i) Location of the unit Address :

(ii) Telephone No. :

(iii) Fax No. :

(iv) E-mail address :

4. Type of Organisation

Proprietary/Partnership/Pvt. Ltd./

Public Ltd./Others :

5. Udyog Aadhar Registration Number.

If granted by Govt. of India

dated (Please enclose copy of

Udyog Aadhar Registration Certificate) :

6. IEM/EOU granted by SIA, Ministry of

Industry, Govt. of India (Please

enclose copy of IEM/EOU) :

7. Nature and details of Activities :

8. List and cost of equipment for

Hardware/software/IT enabled

services (Please enclose separate

sheet if required) :

9. Annual Service capacity :

Signature and Seal of applicant

Date:

Place:


Annexure - VII-A AFFIDAVIT (On Rs. 100/- non-judicial Stamp Paper) I/We___________________________son/daughter/wife/widow* -------------------------------------------of ------------------------------Resident------------- of________________do hereby solemnly affirm and declare as under:- 1. that I/We hereby apply for registration of the unit as Software/ IT Enabled Service i) ii) iii) 2. that I/We am/are proprietor(s)/partner(s)/Managing Director* of the unit whose details are given below :-- Name:- Address:- 3. that all particulars furnished in the application form are factual and correct : 4. that the location of the unit does not violate any locational restrictions for the time being in force and that I/We

have obtained the necessary locational clearances/IT Park approval from the competent authority., Copies of which are enclosed with the application form.

5 Since location of my unit fall within Zone-I/Zone-II of MMR area. I have obtained NOC / Locational clearance/IT

Park Registration from Directorate of Industries, Mumbai under No. ---------- , dated--------. Attested copy of which is enclosed.

6 Since location of my unit falls within ------------ Municipal Corporation/Council, I have obtained

Permit/Licence/NOC under Development Control Rules under/ IT Park Registration from Directorate of Industries, Mumbai No. -------------------------------------------------- , dated --------- . Attested copy of which is enclosed.

7 that I/We have obtained all the statutory clearances/No Objection Certificates/ permissions required to carry out

the manufacturing activity under the prevalent laws, regulations and rules in force. 8. that I/we have also obtained the necessary registration/licence, wherever required, under the relevant laws rules or

orders for the time being in force, for carrying out the said industrial activity. 9. that I/we undertake that annual turnover of IT Software/IT Enabled products shall always exceeds 75% of the

total annual turnover of the Unit. 10 that the unit does not require an Industrial Licence because *(a) the unit employs less than 50/100 workers with/without use of power. *(b) the items proposed to be manufactured are reserved for exclusive production in the small scale industries sector. *(c) the unit does not manufacture any item which is included in Schedule-II of Notification No. S.O. 477(E), dated

25th July 1991 and is reserved for exclusive manufacture in the SSI sector as included in Schedule-Ill of the above notification.

11 that I/We undertake to refund to the Central or State Government any or all financial incentives or benefits given

under various schemes of assistance to Udyog Aadhar/IEM IT Sector along with interest, as may be applicable under the scheme in force and as demanded by the appropriate authority of the Central/State Government in case it is found that the information or particulars submitted to obtain registration were wrong and fraudulent.

12 That in case my/our unit is registered as Udyog Aadhar/IEM. I shall have no claim to any controlled item

required in the process of manufacture/Service, from the Directorate of Industries, Mumbai, as per the provision of the policy in force.

13 That I/we will comply with the laws regarding child labour and regulations as may be applicable to me / us from

time to time failing which the registration is liable to be cancelled. Signature DEPONENT VERIFICATION: Verified and signed on this --------------------- day of --------------------------- 20. That the contents of the affidavit are true to the best of my knowledge and belief. Date: Place: DEPONENT I know the deponent. Advocate

Strike out whichever is not applicable.

ANNEXURE - VII-A


ANNEXURE - XIFormat of the C.A. certificate to be submitted by the applicant unit to

certify the turnover of IT and non-IT products.

(On the letter head of the Chartered Accountant firm)

C E R T I F I C A T E

This is to certify that the books of account of the unit of M/s._____________________Unit located at _________________________have been examined by us. The annual turnover of the unit from Information Technology for the last three accounting years is as under.

T U R N O V E R (Rs. In Lakhs)

Year Total Turnover (Rs.)

Turnover for Software / IT-En-abled Services (ITES)

% of Software / IT-Enabled Services to Total Turnover

20 - 2020 - 2020 - 20

Place:

Date:

For Name of CA firm.

(Name and Signature of Proprietor/Partner/ Director with official seal)


ELP-I Directorate of Industries,

Govt. of Maharashtra *Form of declaration regarding employment of Local persons

(**To be executed by existing Industrial Undertaking)

Name of the Industrial Undertaking: (1) Office Address:

(2) Unit Address:

(3) Products manufactured/Services: Code *** (4) Year of Establishment: (5) Constitution of the Enterprise: (i) Central Government Undertaking (ii) State Government Undertaking (iii) Co-Op. Society (iv) Public Limited (v) Private Limited (vi) Proprietary (vii) Partnership (viii) Other (6) The Head of the Human Resources /

Recruitment is a Person with Knowledge of Marathi / no Knowledge of Marathi. (7) Whether registered under Factories Act? (8) Whether registered as one of the following ? (A) Mega Industrial enterprise (B) Large Industrial enterprise (C) Medium Industrial enterprise (D) Small Industrial enterprise (E) Micro Industrial enterprise * “Local Persons” is defined as one who has at least fifteen years domiciled in the

State of Maharashtra. ** This declaration should be signed only by a person duly authorized to do so by the Industrial Enterprises *** The codes in the rectangle will be filled in by concerned District Industries Centers / Joint Director of Industries, MMR.

Yes Or No

Yes Or No

ELP


Submit alongwith following documents1) MOA sets2) C.A. certificate3) Copy of agreement with developer4) Copy of IT Park Regn.5) Board Resolution6) Udyog Aadhar/IEM


SCHEDULE -A Primary Products (IT Hardware)

S r .No.

H.S.N. Description of products

1 85.23 11) Magnetic tapes of a width not exceeding 4 m.m. 12) Magnetic tapes of a width exceeding 4 m.m. but not exceeding 6.5. m.m.

13) Magnetic tapes of a width exceeding 6.5 m.m. 20) Magnetic discs 90) Other

2 85.31 10) Electrical capacitors, fixed, variables or adjustable (Preset) Fixed capaci-tors designed for use on 50/60 Hz Circuits and having a reactive power h. capacity of not less than 0.5 kvar (Power capacitors)

21) Tantalum fixed capacitors 22) Aluminum electrolytic fixed capacitors 23) Ceramic dielectric, single laxer fixed capacitors 24) Ceramic dielectric, multilayer fixed capacitors 25) Dielectric fixed capacitors of paper or plastic 29) Other fixed capacitors 30) Variable or adjustable (Pre-set) capacitors Other 90) Other

3 85.33 Electrical resisters (including rheostats and potentiometer) other than leading resisters.

10) Fixed carbon resisters, composition or film types 21) Other fixed resisters for a power handling capacity not exceeding 20 w.

30) Wire wound variable resistors including rheostats and potentiometers for a power handling not exceeding 20 W.

39) Wire wound variable resitors including rheostats and potentiometers for a power handling exceeding 20 w or more

40) Other variable resistors, including rheostats and potentiometers Parts

90) 4 85.36 50) Electronic AC switches consisting of optically coupled input and output

circuits.(AC Switches)50) Electronic switches including temperature protected electronic switches

consisting of and a logic chip (Chip on Chip technology) for a voltage not exceeding 1000 volts

50) Electromechanically snafaction switches for a current not exceeding 11 amps.

69) Plugs and Sockets for co-axial cables and printed circuits.90) Connection and contact elements for Wires and Cables


Contd…SCHEDULE - ASr.No. H.S.N. Description of products

5 85.41 Diodes, transistors and similar semiconductor devices, photosensitive semi-conductor, including photo voltaic cells whether or not assembled in modules or made up into panel light emitting diodes, mounted piezo electric crystals.

10) Diodes, other than photosensitive or light emitting liodes. Transistors other than photosensitive transistors with a dissipation rule of less than 1 w.

22) Transistors other than photosensitive transistors, with a dissipation rule of 1 w. or more.

29) Transistors other than photosensitive transistors, with a dissipation rule of 1 w. or more

30) Thysistorsdiacs and triacs other than photosensitive device 40) Photosensitive semiconductor devices, including photo voltaic cells

whether or not as modules or made up into panels, light emitting diodes

50) Other semi-conductor devices 60) Pountagedpiezo-electric crystals. 90 Parts

6 85.42 12) Electronic integrated circuits and micro assembles. Cards incorporat-ing an electronic integrated circuit (Smart Cards)

13) Metal oxide semiconductors (Mos Technology) Circuits obtained by bipolar technology.

14) Circuits obtained by bipolar technology. 19) Other monholithic integrated circuits, including circuits obtained by a

combination and Mos Technology (Bionos technology) Other mono-lithic integrated circuits

13) Other monolithic integrated circuits 14) Hybrid integrated circuits 19) Electronic Micro assemblies Parts 31) Hybrid integrated circuits 40) Electronic Micro assemblies 41) Parts 90) 7 85.44 41) Other electric conductors for a voltage not exceeding 80 V, fitted with

connectors of for telecommunication 49) Other electric conductors for a voltage not exceeding 80 V, fitted with

connectors of for telecommunication 50) Other electric conductors for a voltage exceeding 80 V but not exceed-

ing 1000 V, fitted with connectors of a kind used for telecommunica-tion

70) Optical fiber cables


SCHEDULE- I (A)Priority Intermediate Products

Sr. No. HSN Description of Product

1 8471.60 Input – Output Units including All computer peripherals2 8471.60.10 Computer Keyboard

3 8471.60.19.20 8471.90.07 Computer Monitors:

4

8473.10 8473.30 8473.40 8473.90 8473.90 8473.90 8473.90 8473.90

Populated PCB’SSI (All Categories)

5 8542 Smart Cards & Accessories:

68504.40 8543.80 8471.05

UPS for Data Processing Equipment

7 8517.80 Set-up box with communication function and accessories8 8517.80 Internet – Box with user interface and network interface9 8517.50 Modems and ISIN Terminals: HSN 8517.50

10 8517.50 Router & Technical Services: HSN 8517.5011 8525.20 VSAT Terminals: HSN 8525.2012 Radio Communication13 8525.20 Equipment14 Electronic Private Automatic Branch Exchange. (EPABX) 15. 15 9010 Digital Image Recorders

16 8335Adapters, Jacks & Plugs, Relays, Switches, Terminals & terminal blocks, Sockets, Heat Sinks, Bases and Folders useful for electronics equipment’s only

17 Video Conferencing Equipment’s.18 8413 Mobile Handsets (GPRS & CDMA)19 84.69 Word Processing Machines & Electronic Typewriters.20 84.70 Electronics Calculators.21 84.71 Computer Systems & Peripherals, Electronic Diaries.22 84.73

84.69, 84.70 & 84.71

Parts & Accessories of HSN 84.69, 84.70 & 84.71 for items listed above.

23 85.01 DC Micro Motors / Stepper motors of an output not exceeding 37.5 Watts.


Sr. No. HSN Description of Product

24 85 Parts of HSN 85.01 for items listed above.25 85,04 Uninterrupted Power Supplies (UPS) and their parts.

26 85,05 Permanent magnets and articles intended to become permanent magnets (Ferrites).

27 85.17

Electrical apparatus for the Telephony or line telegraphy, including line telephone sets with cordless handsets and telecommunication apparatus for carries-current line systems or for digital line systems; videophones.

28 85 Microphones, Multimedia Speakers, Headphones, Earphones & Combined Microphones / Speaker Sets & their parts.

29 85.20 Telephone Answering Machines.30 85.22 Parts of Telephone Answering Machines.

31 85.23 Prepared unrecorded Media for Sound Recording or Similar Record-ing of other phenomena.

32 85.24 IT Software on any Media.

33 85.25Transmission apparatus other than apparatus for radio broadcasting or TV broadcasting, transmission apparatus incorporating reception apparatus, digital still image video cameras.

34 85.27 Radio communication receivers, Radio pagers.

3585.29

85.25 & 85.27(i) Aerials, Antennas and theirs parts. (ii) Parts of Items at 85.25 and 85.27 listed above.

36 85.31 LCD Panels, LED Panels & Parts thereof.

37 85,32 Electrical Capacitors, Fixed, Variable or adjustable (Pre-set) and parts thereof.

38 85.34 Printed Circuits.

39 85 Switches, Connectors & Relays for up to 5 Amps at voltage not ex-ceeding 250 Volts, Electronics Fuses.

40 85.40 Data / Graphic Display Tubes, other than TV pictures tubes and parts thereof.

41 85 Signal Generators and parts thereof42 90.01 Optical Fiber and Optical Fiber Bundles and Cables.

43 90.13 Liquid Crystal Devices, Flat Panel display devices and parts thereof.

4490.30

Cathode ray oscilloscopes, Spectrum Analysers, Cross-talk meters, Gain measuring instruments, distortion factor meters, Psophometers, Network & Logic analyser and Signal analyser


We, Bizsolindia Services Private Limited offer following professional services w.r.t. IT/ITES Parks & Units;

Deliverables of Bizsolindia

• Conducting feasibility study of the unit & Report there on.

• End to end services for right from obtaining the Letter of Intent to Registration, Incentives, Fiscal Benefits & Statutory Returns

• Obtaining IT registration Certificate as an IT/ITeS Units for existing Units

• Approval for Private IT Park in order to avail benefit of double FSI and others.

• Obtaining Enterprise Memorandum (EM) Certificate OR Industrial Enterprise Memorandum (IEM) for IT/ITeS Units

• Stamp Duty Exemption for IT/ITeS Units, SEZ Units, and STPI Units

• Electricity Duty Exemption for IT/ITeS Units, SEZ Units, and STPI Units

• Electricity Tariff Change for IT/ITeS Units, SEZ Units, and STPI Units

• Obtaining STP/Non-STP Registration Certificate as an IT/ITeS Units for existing Units.

• SOFTEX Declaration for IT/ITeS Units, SEZ Units, and STPI Units and approval thereof from competent authority

• Maintenance of Records for IT/ITeS Parks, IT/ITES Units, SEZ Units, and STPI Units

• Statutory Returns for IT/ITeS Parks, IT/ITES Units, SEZ Units, and STPI Units

• Providing Certification from An Independent Chartered Accountant & Chartered Engineer for obtaining incentives & Benefits for IT/ITeS Parks, IT/ITES Units, SEZ Units, and STPI Units.

• Exit formalities of IT/ITeS Parks, IT/ITES Units, SEZ Units, and STPI Units

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