Software Technology Park (STP) Scheme is a 100% export oriented scheme for undertaking software development for export using data communication links or in the form of physical media including export of professional services.

• STP Scheme Approvals are given under single window clearance mechanism.
• Power of director :-An STP project may be set up any where in India. Jurisdictional Directors have the powers to approve import of capital goods (net of taxes) not more than US$ 20 million.
• Equity :-100% Foreign equity is permitted.
• Import :- All the imports of Hardware & Software in the STP units are completely duty , import of second hand capital goods also permitted.
• Duty Imports :- import license not required. Import certificates are issued on request by Director STPI for duty Imports of Capital Goods/Raw Material/Components.
• Excise Duty Relief:- Central Excise Duty exemption is available on Capital goods bought from Domestic Market on request from Director, STPI.

Income Tax Holiday Package :- Income tax holiday package is available for STP units for a block of ten years OR upto the year 2010.

• Domestic Tariff Area (DTA) Sales:- The sales in domestic tariff area are permissible upto 25% of the exports in value terms made by the STP unit.
• Re-Export of capital goods are permitted.
• Simplified Minimum Export Performance norms i.e., (STP & EHTP scheme), Net Foreign Exchange Earnings to be positive.
• Domestic purchases by STP unit are eligible for the benefit of deemed exports to the equipment suppliers.
• Use of computer system for commercial training purpose is permissible subject to the condition that no computer terminals are installed outside the STP premises.
• The sales in the Domestic Tariff Area [DTA] shall be permissible upto 50% of the export in value terms.
• STP units are exempted from payment of corporate income tax for a block of 10 years (upto 2009-10).
• The capital goods purchased from the Domestic Tariff Area [DTA] are entitled for the benefits like levy of Excise Duty & Reimbursement of Central Sales Tax (CST).
• Capital invested by Foreign Entrepreneurs Know - How Fees, Royalty, Dividend etc., can ly repatriated after payment of Income Taxes due on them if any.
• Depreciation on Capital Goods above 90% over a period of five years and also the accelerated rate of 7% per quarter during the first two years subject to an overall limit of 70% in the first three years.
• Call center permitted under the STPI scheme.
• All Services as listed in appx.54 of hand book of procedures (EXIM) are eligible for facility of STP scheme.
• Service providers eligible for recognition as 'Service Export House', International Service Export House' or International Star service House.