Tax Holiday till 2010

[scorpio]

Government in my state (Rajasthan India) is giving Tax Holiday till 2010 and 100% foreign equity participation allowed in software /It services.. Seems some people can save taxes with this.

Does anyone has experience with these kind of government schemes or have does any tax free setup in any country?

Software Technology Park (STP ) scheme is a 100% Export Oriented Scheme ( 100 % EOU ). It is for the development and export of computer software using data communication link or physical media, including export of the professional services. STP can be a virtual software developments unit or can be infrastructural complex set-up for providing necessary support for the STP Units. The followings are the salient features of STP scheme.


Scheme Benefits & Highlights

1. Single Window clearance
2. Duty free imports of hardware & software
3. Tax Holiday till 2010
4. 100% foreign equity participation
5. Exemption of excise duty for domestic purchase of capital goods
6. Reimbursements of CST
7. Export certifications are provided at a single point
8. STP units are entitled to sell the computer software in Domestic Tariff Area (DTA) upto 50% of the software exported in value terms
9. Computer Systems in STP units are allowed for training purposes within the premises of STP unit