The STP scheme allows software companies to set up operations in convenient and inexpensive locations and plan their investment and growth driven by business needs.
There are several benefits like-Customs Duty Exemption in full on imports, Central Excise Duty Exemption in full on indigenous procurement,
All relevant equipment/goods including second hand equipment can be imported (except prohibited items), Equipment can also be imported on loan basis/lease
100% FDI is permitted through automatic route, Sales in the DTA up to 50% of the FOB value of exports permissible, Use of computer imported for training permissible subject to certain conditions,Depreciation on computers at accelerated rates up to 100% over 5 years is permissible.