Key Concessions

The key concessions and incentives available to IT industries as per the UP Information Technology are:

1. Land and Infrastructure Concessions from U.P.Govt
2. Preferential allotment of land by Greater Noida Industrial Development Authority
3. I.T.units and call centers shall be given 100% exemption from payment of Stamp Duty and Registration fees
4. Ununinterrupted power supply-continuous and uninterrupted power supply for IT industries
5. Encouragement to captive power generation in IT locations.I.T. Units with 5KVA power requirement can be set up
6. Social infrastructure linked IT locations-like schools, housing, health, entertainment, and leisure facilities with high ambience
7. Incentives to Mega Investment Units- Information Technology units setup in the State with an investment of 50crores or more shall be classified as Mega Investment Units. The Mega Investment units shall:
   1. Be given Interest free loan for a period of 15years upto the amount of the Sales / Trade Tax liability or 10% of the total turnover of the unit
   2. Be allocated land on Priority
   3. To make available land at a rate that is atleast 25% lesser than the sector rate
   4. To be covered by the facility of MODVAT
   5. To be allowed interest free loan of 2.5% of Trade Tax Liability
   6. Be allowed CST @ 0.5% or at a lower rate given by Government of India
   7. Be given exemption from payment of entry tax under section 4B of Entry Tax Act on all materials
   8. Be permitted to own tax liabilities of suppliers or contractors
   9. The rate of tax on transfer of right to use goods/product of I.T.industry
   10. Be given on case-to-case basis on new units only
   11. Be permitted annual defeasement of taxes
   12. Be given Single Window Clearance through a High Power Committee under the Chairmanship of the Chief Secretary of UP

Fiscal Incentives

1. No trade tax on computer software
2. 2% trade tax on computer hardware including all surcharges
3. No trade tax on raw material used for exports
4. Software leases / work contract or licenses to use in any form exempted from trade tax
5. Trade tax exemption for a period of 12 years and deferment for a period of 15 years, irrespective of level of investment and location of unit
6. Same concessions as the Govt. STPs for units situated in private sector STPs
7. Special package of incentives being formulated for I.T. industries involving an investment of Rs. 50 crores and above

Other Concessions and Support

1. “Green Card" for priority treatment to I.T. Industry in all Govt offices and industrial/urban authorities
2. Escort services by Dept. of I.T., Udyog Bandhu and PICUP to facilitate easy clearances and approvals
3. Single Executive Authority for granting all clearances and approvals required by units within a STP
4. Complete exemption to software industry from the provisions of Pollution Control Act both for air and water pollution
5. Exemption from inspections for Factory/ Boiler/ Excise/ Labour/Pollution/ Environment etc.
6. Quantity & price preference for I.T. products produced in UP

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