Key Concessions

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

• Land and Infrastructure Concessions from U.P.Govt


• Preferential allotment of land by Greater Noida Industrial Development Authority


• I.T.units and call centers shall be given 100% exemption from payment of Stamp Duty and Registration fees


• Ununinterrupted power supply-continuous and uninterrupted power supply for IT industries


• Encouragement to captive power generation in IT locations.I.T. Units with 5KVA power requirement can be set up


• Social infrastructure linked IT locations-like schools, housing, health, entertainment, and leisure facilities with high ambience


• 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:
  
  
  
  • 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
  
  
  • Be allocated land on Priority
  
  
  • To make available land at a rate that is atleast 25% lesser than the sector rate
  
  
  • To be covered by the facility of MODVAT
  
  
  • To be allowed interest free loan of 2.5% of Trade Tax Liability
  
  
  • Be allowed CST @ 0.5% or at a lower rate given by Government of India
  
  
  • Be given exemption from payment of entry tax under section 4B of Entry Tax Act on all materials
  
  
  • Be permitted to own tax liabilities of suppliers or contractors
  
  
  • The rate of tax on transfer of right to use goods/product of I.T.industry
  
  
  • Be given on case-to-case basis on new units only
  
  
  • Be permitted annual defeasement of taxes
  
  
  • Be given Single Window Clearance through a High Power Committee under the Chairmanship of the Chief Secretary of UP
  
  
  
  

Fiscal Incentives

• No trade tax on computer software


• 2% trade tax on computer hardware including all surcharges


• No trade tax on raw material used for exports


• Software leases / work contract or licenses to use in any form exempted from trade tax


• 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


• Same concessions as the Govt. STPs for units situated in private sector STPs


• Special package of incentives being formulated for I.T. industries involving an investment of Rs. 50 crores and above

Other Concessions and Support

• “Green Card" for priority treatment to I.T. Industry in all Govt offices and industrial/urban authorities


• Escort services by Dept. of I.T., Udyog Bandhu and PICUP to facilitate easy clearances and approvals


• Single Executive Authority for granting all clearances and approvals required by units within a STP


• Complete exemption to software industry from the provisions of Pollution Control Act both for air and water pollution


• Exemption from inspections for Factory/ Boiler/ Excise/ Labour/Pollution/ Environment etc.


• Quantity & price preference for I.T. products produced in UP