IT companies scramble for setting up STP’s. - Views on News from Equitymaster

Helping You Build Wealth With Honest Research
Since 1996. Try Now

  • MyStocks


Login Failure
(Please do not use this option on a public machine)
  Sign Up | Forgot Password?  

IT companies scramble for setting up STP’s.

Mar 31, 2000

Following the Finance Minister’s announcement in the recent budget to allow Information Technology (IT) companies setting up Software Technology Parks (STP’s) before the 31st of March 2000, there has been a scramble among IT companies to apply for setting up such units as such units can avail the benefit of a ten year tax holiday. The number of applications filed ever since the announcement to date amount more than 1,500. This is more than the total number of applications filed so far since the inception of the scheme which amount to 1,300.

IT companies which were hitherto free from income tax on their export earnings are being brought under the net, with the recent announcement by the government to impose tax on 20% of exports progressively over the next five years till such income is fully taxable.

This move would have considerably affected the bottomline in the coming years as the bulk of their income is expected to be generated from overseas income.

One loophole is to set up units in Software Technology Parks, as the income derived from such units is totally tax free.

Equitymaster requests your view! Post a comment on "IT companies scramble for setting up STP’s.". Click here!


More Views on News

Why Did Shares of Nazara Technologies Plunge Today? (Views On News)

Jun 18, 2021

Rakesh Jhunjhunwala-backed Nazara Technologies plunged over 12% today.

Birlasoft Hits 52-week High as Company Signs AI Partnership (Views On News)

Jun 9, 2021

The stock has rallied 350% in the last year. Is there more steam left?

What's Behind the Rally in Wipro Shares? (Views On News)

May 31, 2021

Wipro shares outperforms TCS and Infosys over the past year. Is the rally justified?

Happiest Minds Q4 Results: Profit Grows Over Six-Fold; Company Eyes 20% Organic Growth in FY22 (Views On News)

May 14, 2021

Key takeaways from Happiest Minds Technologies Q4FY21 results.

L&T Technology Shares Fall After Q4 Results. What Should Investors Do? (Views On News)

May 5, 2021

Despite strong deal wins and a low base in FY21, a big turn-off for investors was the muted FY22 revenue growth guidance.

More Views on News

Most Popular

Hotel Stocks Will Reward Investors (Fast Profits Daily)

Jun 8, 2021

This is why I'm bullish on the hotel and hospitality sector.

My 'Unlock' Investments (Fast Profits Daily)

Jun 11, 2021

The best unlock investments you can make in the market.

The Most Visible Sign of India's Revival is on Two Wheels (Profit Hunter)

Jun 9, 2021

Investing in the best stocks could result in wealth compounding on a massive scale.

How I Discovered a 400-Year-Old Open Secret to Extreme Wealth (Profit Hunter)

Jun 11, 2021

Charlie Munger's open secret about investing success.


India's #1 Trader
Reveals His Secrets

Secret To Increasing Your Trading Profits Today
Get this Special Report,
The Secret to Increasing Your Trading Profits Today, Now!
We will never sell or rent your email id.
Please read our Terms


Jun 18, 2021 (Close)