PROCEDURE FOR REGISTRATION OF IT UNITS IN MAHARASHTRA

This document describes the procedure for obtaining registration as an IT unit. A list of important addresses and the Forms and formats for application are also provided for easy reference, towards the end of this document. 1.) Who can register as an IT unit? For purposes of Registration, IT units are classified into three groups, depending on their activities. These are: a. IT Hardware units b. IT Software units c. IT Service units (incl. IT Enabled Services) New units, proposing to commence activities under one or more of the three groups above, or existing non-IT units proposing to commence IT activities in one or more of the three groups above, are first required to obtain a Letter of Intent (LOI) from the concerned Registering authority. Thereafter, upon successful commencement of business activities, the concerned unit can apply for Permanent registration as an IT unit. Note: Both LOI as well as Permanent Registration are issued for a period of 3 years. IT units are required to apply for renewal of LOI / Permanent Registration at the end of the period.

2.) What is the procedure for applying for LOI / Permanent Registration? Step I: In order to obtain LOI / Permanent Registration as an IT unit under one of the three groups above, the concerned units need to ensure the following: 1. For IT Hardware units: At least 75% of the units total annual turnover in value terms comprises of production of items indicated in the list attached in Annexure A. 2. For IT Software units: At least 75% of the units total annual turnover in value terms comprises of revenues from IT Software sale. A company desiring to register as an IT Software unit requires to first obtain a certificate issued by one of the following agencies, identifying the unit as a Software unit: a. b. c. d. e. Development Commissioner, SEEPZ, Mumbai for units located inside SEEPZ. Software Technology Parks of India (STPI) for units located in STPI premises. Electronics & Computer Software Export Promotion Council. National Association for Software & Service Companies (NASSCOM). National Center for Software Technology (NCST).

3. For IT Services (and ITES) units: At least 75% of the total annual turnover in value terms comprises of IT Services as indicated in Annexure B.

Step II: Having fulfilled the requirement as in Step I above, application for LOI / Permanent Registration can be filed with one of the following agencies: a. Joint Director of Industries for Pune, Aurangabad, Nashik and Aurangabad. b. Technical Advisor, MIDC for all units located in MIDC areas within the Mumbai Metropolitan Region (MMR). c. Joint Director of Industries (MMR) for Small Scale units in areas other than MIDC areas in Mumbai (MMR) and Mumbai Suburban districts. d. Superintending Industries Officer for Large Scale units in Thane and Amravati districts. e. G.M., District Industries Center for Small Scale units in all districts. f. Development Commissioners (SEEPZ / SEZ) for all units located within SEEPZ or other SEZs.

3.) Documents to be submitted while applying for registration In brief, the following documents need to be submitted: i. Application in the prescribed form for LOI / Permanent Registration (refer annexures for format) ii. Affidavit (refer annexures for format) iii. Locational Clearance certificate from Directorate of Industries, MIDC or the competent Local Authority, as the case may be. iv. Form regarding employment of local persons (ELP-II Form). v. Certificate from designated agency as in point no. 2, Step I, above, for IT Software units only. vi. In case of Permanent Registration, a certificate from the C.A. certifying that at least 75% of the units turnover is attributable to revenues from IT Hardware / Software / Software Services (refer annexures for format) Application Forms are available with the designated agencies mentioned in point no.2, Step II, above, for a nominal fee. 4.) What is the implication of Registration for an IT unit? Upon Registration as an IT unit, the unit can avail of all the incentives provided to IT units under the Maharashtra Industrial Policy, 2001. In brief, these are:

Stamp Duty exemption Electricity Duty exemption Octroi refund Additional FSI (only for IT Software units) Captive Power generation Permission to set up units in residential or no-development zones Permission to operate 3 shifts a day Lifting of curbs on employment of women workers at odd hours

Please refer to the respective section in www.maharashtraitparks.com, for a detailed description of each of the above incentives.

5.) Some important addresses

Development Commissioner Office of The Dev. Commissioner, Ministry of Commerce, SEEPZ, Andheri (East) , Mumbai 400 096 Tel.No. (022) 2836 71 43 ; Fax No. (022) 2837 68 56

Joint Director of Industries Mantralaya, Mumbai Tel No.: 022-22029009 Director National Centre for Software Technology (NCST), Gulmohur Cross Road No.9, JVPD Scheme, Juhu, Mumbai 400 049 Tel. No. (022) 26201606 / (022) 2620590 ; Fax No. (022) 26210139

Director & Chief Executive Software Technology Park of India (STPI), rd Kubera Chambers, 3 Floor, Dr. R. P. Rd., Shivaji Nagar, Pune 411005 Tel No. (020) 2329834/ 2329835/ 2544172 ; Fax No. (020) 2329833

Regional Director Western Region National Association of Software & Service Companies (NASSCOM) th #2, 4 Floor, Samruddhi Venture Park, Central MIDC Road, Andheri (E), Mumbai 400 093 Tel No.: 022-28234844/51 Fax No.: 022-28379158

Chairman Regional Committee (W) Electronics & Computer Software Export Promotion Council, Unit No. 39, SDF-2, SEEPZ, Andheri (East), Mumbai 400 096 Tel. No. (022) 829 22 37/(022) 829 24 75 Fax No. (022) 829 13 68/(022) 829 24 75

6) Forms and Formats The formats for the Application forms, Affidavits and CAs certificates to be included in the set of documents while applying for LOI / Permanent Registration, are provided in the Annexures. A list of Annexures is provided below for reference:

Annexure 1

Form of Application for Letter of Intent / Registration of IT Hardware unit to be made to the Registering Agency Format of the Affidavit to be submitted by an industry for Obtaining LOI for IT Hardware Units Form of Application for Letter of Intent / Registration for IT Software /IT Enabled/IT service units to be made to the Registering Agency Format of the Affidavit to be submitted by an industry for obtaining LOI for IT Software Units Format of the Affidavit to be submitted by an industry for obtaining LOI for IT Service Units Format of the Affidavit to be submitted by an industry for Obtaining Permanent Registration as IT Hardware/IT Software/IT Service Units Format of the C.A. certificate to be submitted by the applicant unit to certify the turnover of IT and non-IT products

Annexure 2

Annexure 3

Annexure 4

Annexure 5

Annexure 6

Annexure 7

Annexure 1 Form of Application for Letter of Intent / Registration of IT Hardware unit to be made to the Registering Agency
1. Name of Unit / Applicant 2. a) Address for communication b) Telephone No. c) Fax No. d) E-mail address 3. Location of the unit i) Address ii) iii) iv) Tel No. Fax No. E-mail Address : : : Pincode : : : : M/s.33

: Pincode: : : : Proprietary/Partnership/Pvt.Ltd./ Public Ltd./Others / / /SSI

4. Type of Organisation

5. SSI Registration Number : 11/ If granted by District Industries Centre / dated Joint Director of Industries, Mumbai Metropolitan Region (Please enclose copy of SSI Registration Certificate) 6. IEM/EOU granted by SIA, Ministry of Industry, Govt. of India (Please enclose copy of IEM/EOU) 7. Products manufactured a) Existing Information Technology Hardware products Sr.No. Item : : No. Dated -

: :

Annual Production Quantity : Annual Production Quantity :

Value (Rs.)

b) Existing Non-IT Products Sr.No. Item

Value (Rs.)

8. Products to be manufactured Proposed IT Hardware Products : Sr.No. Item

Annual Production / Capacity Quantity Value (Rs.)

9. Brief details of manufacturing process in respect of items at 7a and 8. (Enclose separate sheet if necessary) 10. Investment in Plant & Machinery a) Existing for IT Hardware b) Existing for Non-IT products c) Proposed for IT Hardware : : : :

Rs.(Lakhs) Rs.(Lakhs) Rs.(Lakhs)

Signature of applicant Date: Place

Name of Prop./Partner/Director

Annexure 2 Format of the affidavit to be submitted by an industry for Obtaining LOI for I. T. Hardware Units
AFFIDAVIT (on Rs. 20 non-judicial stamp paper)

Deponent Shri/Smt./Kum_____________________________________________ ____________ years Occupation ________________________, of__________________________________________________________________.

Aged Resident

I, the above named deponent, do hereby take oath and state on solemn affirmation as under:(1) That I am proprietor/partner/director of the firm named M/s. ___________________________________________________________ and am authorised to execute this affidavit on behalf of this firm / company. (2) That I/we propose to start a SSI/MSI unit for manufacture of following products/ add the following products to existing SSI/MSI registration. (i) (ii) (iii) (3) That the factory location is at / is proposed at (full address) which is in industrial zone/not in industrial zone but does not violate any other locational restrictions for the time being in force. (4) That land/premises for the factory are owned by the firm / by M/s. / Shri / Smt. That M/s /Shri/Smt. has given consent for its industrial use. (5) That it will be our responsibility to obtain all the statutory NOCs/permissions required to carry out the proposed industrial activity. (6) Since location of my/our Unit falls within Zone-l/Zone-II of Mumbai Metropolitan Region, I have obtained NOC/Locational Clearance from Directorate of Industries, Mumbai, under No. dt. Copy of which is enclosed (7) That I/we undertake that the annual turnover of the Information Technology Hardware products shall exceed 75% of the total annual turnover of the unit. (8) I/We undertake to refund to the State/Central Government all financial incentive/benefits under schemes assistance to SSI/IT Sector along with interest as may be applicable under the scheme in force and as demanded by the concerned appropriate authority of the State/Central Government, in case it is found that the information submitted for obtaining the Registration is fraudulent. (9) That all the information/particulars submitted in the application form and in this affidavit are factual and correct and I/we shall be fully responsible for any discrepancy found later. (10) That I/we will comply with the laws regarding child labour. Signature DEPONENT' NAME Place: Date:

VERIFICATION VERIFIED and signed on this day of 1999

That the contents of this affidavit are true and correct to the best of my knowledge and belief. Deponent I know the deponent. Advocate Note : * Strike out whichever is not applicable.

Annexure 3 Form of Application for Letter of Intent / Registration for IT Software /IT Enabled/IT service units to be made to the Registering Agency
1. Name of Unit / Applicant 2. a) Address for communication b) Telephone No. c) Fax No. d) E-mail address 3. Location of the unit v) Address vi) vii) viii) Tel No. Fax No. E-mail Address : : : Pincode : : : : M/s.

: Pincode: : : : Proprietary/Partnership/Pvt.Ltd./ Public Ltd./Others / / /SSI

4. Type of Organisation

5. SSI Registration Number : 11/ If granted by District Industries Centre / dated Joint Director of Industries, Mumbai Metropolitan Region (Please enclose copy of SSI Registration Certificate) 6. IEM/EOU granted by SIA, Ministry of Industry, Govt. of India (Please enclose copy of IEM/EOU) 7. Nature and details of services/Software 8. List and cost of machinery/equipment for software/ IT services/IT enabled services: (Please enclose separate sheet if required) : : No. Dated -

9. Annual production/service capacity : 1. 2. 3. 4.

Items

Unit

Quantity

Value (Rs. in Lakhs)

Signature of applicant Date: Place Name of Prop./Partner/Director

Annexure 4 Format of the Affidavit to be submitted by an industry for obtaining LOI for IT Software Units

A F F I D A V I T (on Rs. 20 non-judicial stamp paper)

Deponent Shri/Smt./Kum---------------------------------------------------------------, Aged --------------------years Occupation-----------------------------------, Resident of---------------------------------------------------

I, the above named deponent, do hereby take oath and state on solemn affirmation as under :(1) That I am proprietor/partner/director of the firm named M/s. __________ and am authorised to execute this affidavit on behalf of this firm. (2) That I/we propose to start a unit for manufacture of following products/add the following products to existing activities. (i) (ii) (3) That the factory location is at/is proposed at (full address) ---------------------------------------------------------which is in industrial zone/residential/commercial Zone and does not violate any other Locational restrictions for the time being in force. (4) That land/premises for the factory are owned by the firm by M/s. / Shri / Smt. ----------------------------------------------- That M/s / Shri / Smt. ------------------------------------------------------------- has given consent for industrial use. (5)That it will be our responsibility to obtain all the statutory NOCs/permissions required to carry out the proposed industrial activity. (6) Since location of my Unit falls within Zone-I / Zone-II of MMR area I have obtained NOC / Location clearance from Directorate of Industries, Mumbai, under No. ------------ dated --------------------- copy of which is enclosed.

(7) that the unit is an Information Technology Software unit and I/we have obtained certification to that effect from -------------------------- , the designated agency of the Government of Maharashtra. Attested copy of the certificate is enclosed. (8)That I/we undertake that the annual production turnover of the Information Technology software products shall always exceed 75% of the total annual production of the unit. (9) I/We undertake to refund to the State/Central Government all financial incentive/benefits under schemes assistance to IT Sector along with interest as may be applicable under the scheme in force and as demanded by the concerned appropriate authority of the State/Central Government, in case it is found that the information submitted for obtaining the LOI is fraudulent. (10) That all the information/particulars submitted in the application form and in this affidavit are factual and correct and I/we shall be fully responsible for any discrepancy found later. (11) That I/we will comply with the laws regarding child labour. Signature DEPONENT Place: Date :

VERIFICATION VERIFIED and signed on this day of --------------------------------------------1999

That the contents of this affidavit are true and correct to the best of my knowledge and belief. Date : I know the deponent Advocate Note : * Strike out whichever in not applicable. Place : Deponent

Annexure 5 Format of the affidavit to be submitted by an industry for obtaining LOI for IT Service Units

A F F I D A V I T (on Rs. 20 non-judicial stamp paper)

Deponent Shri/Smt./Kum---------------------------------------------------------------, Aged --------------------years Occupation-----------------------------------, Resident of-----------------------------------------------------------------------------------------------------------I, the above named deponent, do hereby take oath and state on solemn affirmation as under :(1) That I am proprietor/partner/director of the firm named M/s. and am authorised to execute this affidavit on behalf of this firm. (2) That I/we propose to start a unit for service activities of/add following activities to existing activities. (i) (ii) (iii) (3) That the factory location is at / is proposed at (full address) ---------------------------------------------------------which is in industrial zone/residential/Commercial Zone and does not violate any other locational restrictions for the time being in force. (4) That land/premises for the factory are owned by the firm by M/s. / Shri / Smt. ----------------------------------------------------- That M/s / Shri / Smt. -------------------------------------------------------- has given consent for the above use. (5) That it will be our responsibility to obtain all the statutory NOCs/permissions required to carry out the proposed activity. (6) Since location of my Unit falls within Zone-I / Zone-II of MMR area I have obtained NOC / Location clearance from Mumbai Municipal Corporation, Mumbai, under No. ------------ dated --------------------- copy of which is enclosed. (7) That I/we undertake that the annual turnover of the Information Technology Service/service enabled activity shall always exceed 75% of the total annual turnover of the unit. (8) I/We undertake to refund to the State/Central Government all financial incentive/benefits under schemes assistance to IT Sector along with interest as may be applicable under the scheme in force and as demanded by the concerned appropriate authority of the State/Central Government, in case it is found that the information submitted for obtaining the Letter of Intent is fraudulent. (9)That all the information/particulars submitted in the application form and in this affidavit are factual and correct and I/we shall be fully responsible for any discrepancy found later. (10) That I/we will comply with the laws regarding child labour.

Signature DEPONENT Place: Date :

VERIFICATION VERIFIED and signed on this day of --------------------------------------------1999

That the contents of this affidavit are true and correct to the best of my knowledge and belief. Date : Place : I know the deponent Advocate Note : Strike out whichever in not applicable. Deponent

Annexure 6 Format of the affidavit to be submitted by an industry for Obtaining Permanent Registration as IT Hardware/IT Software/IT Service Units
AFFIDAVIT (On Rs. 20/- non-judicial Stamp Paper)

I/We___________________________son/daughter/wife/widow* of ------------------------------------------Resident of _____________________ do hereby solemnly affirm and declare as under:(1) that I/We hereby apply for permanent registration of the unit as IT Hardware / IT Software / IT Service unit. (2) that I/We am/are proprietor(s)/partner(s)/Managing Director* of the unit whose details are given below :-Name:Address:-

(3) that all particulars furnished in the application form are factual and correct : (4) that the location of the unit does not violate any locational restrictions for the time being in force and that I/We have obtained the necessary locational clearances from the competent authority., Copies of which are enclosed with the application form. 5) Since location of my unit falls within Zone-I/Zone-II of MMR area. I have obtained NOC / Locational clearance from Directorate of Industries, Mumbai under No. ---------- , dated--------. Attested copy of which is enclosed. Since location of my unit falls within -----------Municipal Corporation/Council, I have obtained Permit/Licence/NOC under Development Control Rules under No. ----------- , dated -------- . Attested copy of which is enclosed.

6)

(7) that I/We have obtained all the statutory clearances/No Objection Certificates/ permissions required to carry out the manufacturing activity under the prevalent laws, regulations and rules in force. (8) that I/we have also obtained the necessary registration/licence, wherever required, under the relevant laws rules or orders for the time being in force, for carrying out the said industrial activity. (9) that I/we undertake that annual turnover of IT Hardware products/IT Software services * shall always exceeds 75% of the total annual turnover of the Unit. (10) that the unit does not require an Industrial Licence because *(a) the unit employs less than 50/100 workers with/without use of power. *(b) the items proposed to be manufactured are reserved for exclusive production in the scale industries sector. small products/IT

*(c) the unit does not manufacture any item which is included in Schedule-II of Notification No. S.O. 477(E), dated 25th July 1991 and is reserved for exclusive manufacture in the SSI sector as included in Schedule-Ill of the above notification. (11)That I/We undertake to refund to the Central or State Government any or all financial incentives or benefits given under various schemes of assistance to IT Sector along with interest, as may be applicable under the scheme in force and as demanded by the appropriate authority of the Central/State Government in case it is found that the information or particulars submitted to obtain registration were wrong and fraudulent. (12)That I/we will comply with the laws regarding child labour and regulations as may be applicable to me / us from time to time failing which the registration is liable to be cancelled. Signature DEPONENT

VERIFICATION: Verified and signed on this ------------------------------------- day of --------------------------- 1999. That the contents of the affidavit are true to the best of my knowledge and belief.

Date:
I know the deponent.

Place:
DEPONENT ADVOCATE

Annexure 7 Format of the C.A. certificate to be submitted by the applicant unit to certify the turnover of IT and non-IT products
(On the letter head of the Chartered Accountant firm)

CERTIF I CATE

This is to certify that the books of account of the unit of M/s. _________________________ Located at Office Address:- -------------------------------------------------------------------------------------------------------------------

Business Address:of Unit

-------------------------------------------------------------------------------------------------------------------

have been examined by us.

The annual turnover of the unit from Information Technology

Hardware/Software/Services* for the last three accounting years is as under. T U R N O V E R (Rs. In Lakhs) Year Total Turnover ( Rs.) Turnover for Hardware/Software/Services* (Itemwise) IT % of Hardware/Software/Services* Total Turnover IT to

1995-96 1996-97 1997-98 For Name of CA firm.

Place: Date: *Strike out whichever is not applicable.

(Name and Signature of Proprietor/Partner/ Director with official seal)

Seal with Registration Number Date

Annexure A LIST OF IT HARDWARE ITEMS

Sr. No. 1. H.S.No. 85.23 Description of Products 11) Magnetic tapes of a width not exceeding 4 m.m. 12) Magnetic tapes of a width exceeding 4 m.m. but not exceeding 6.5 m.m. 13) Magnetic tapes of a width exceeding 6.5 m.m. 20) Magnetic discs 90) Other Electrical capacitors, fixed, variables or adjustable (Pre-set) 10) Fixed capacitors designed for use on 50/60 HZ Circuits and having a reactive power h. capacity of not less than 0.5 kvar (Power capacitors) Tantalum fixed capacitors Aluminum electrolytic fixed capacitors Ceramic dielectric, single laxer fixed capacitors Ceramic dielectric, multilayer fixed capacitors Dielectric fixed capacitors of paper op plastic 29 Other fixed capacitors 30 Variable or adjustable (Pre-set) capacitors 90 Other Electrical resisters (Including rheostats and potentiometer) other than leading rusisters. 10) 21) Fixed carbon resisters, composition or film types. Other fixed resisters for a power handling capacity not exceeding 20 w. 29) Other fixed resistors capacity of 20 w or more 30) Wire wound variable resistors including rheostats and potentiometers for a power handling not exceeding 20w 39) Wire wound variable resistors including rheostats and potentiometers for a power handling exceeding 20 w or more 40) Other variable resistors, including rheostats and potentiometers. 90) Parts. 50) Electronic AC switches consisting of optically coupled input and output circuits. ( AC Switches) 50) Electronic switches including temperature protected electronic switches consisting of and a logic chip (Chip on Chip technology) for a voltage not exceeding 1000 volts 50) Electromechanical snaf action switches for a current not exceeding 11 amps. 69) Plugs & Sockets for co-axial cables and printed circuits. 90) Connection and contact elements for Wires and Cables Diodes, transistors and similar semiconductor devices, photosensitive semi-conductor, including photo voltaic cells whether or not assembled in modules or made-up into panel light emitting diodes, mounted piezo electric crystals. 10) Diodes, other than photosensitive or light emitting liodes. 22) Transistors other than photosensitive transistors with a dissipation rule of less than 1 w. 29) Transistors other than photosensitive transistors, with a dissipation rule of 1 w or more. 30) Thyristors diacs and triacs other than photosensitive devices. 40) Photosensitive semiconductor devices, including photo voltaic cells whether or not as modules or made up into panels, light emitting diodes. 50 Other semi conductor devices.

2.

85.31

3.

85.33

4.

85.36

5)

85.41

Sr. No. 6.

H.S.No. 85.42

60 Pountaged piezo-electric crystals. 90 Parts Description of Products Electronic integrated circuits and microassembles. 12) Cards incorporating an electronic integrated circuit (Smart Cards) 13) Metal oxide semiconductors (Mos Technology) 14) Circuits obtained by bipolar technology. 19) Other monholithic integrated circuits, including circuits obtained by a combination and Mos Technology (Bionos technology) 31) Other monolithic integrated circuits 40) Hybrid integrated circuits 41) Electronic Micro assemblies. 90 Parts. 41) Other electric conductors for a voltage not exceeding 80 v, fitted with connectors of for telecommunication. 49) Other electric conductors for a voltage not exceeding 80 v, not fitted with connectors of for telecommunication. 50) Other electric conductors for a voltage exceeding 80 v but not exceeding 1000v, fitted with connectors of a kind used for telecommunication. 70) Optical fiber cables.

7.

85.44

PRIORITY INTERMEDIATE PRODUCTS

1. Input Output Units including All computer peripherals : HSN 8471.60 Computer Keyboard : HSN 8471.60.19.10 Computer Monitors : HSN 8471.60.19.20 HSN : 8471.90.07

2. 3.

4. Populated PCBSSI (All Categories) : HSN 8473.10 HSN 8473.30 HSN 8473.40 HSN 8504.90 HSN 8517.90 HSN 8529.90 HSN 8538.90 HSN 8543.90 5. Smart Cards & Accessories : HSN 8542.12 6. UPS for Data Processing HSN 8504.40 Equipment : HSN 8543.89 HSN 8471.05 Set-up-box with communication function and accessories : HSN 8517.80 Internet box with user interface and network interface : HSN 8517.80 Modems & ISDN Terminals : HSN 8517.50 Routers & Terminal Servers : HSN 8517.50 VSAT Terminals : HSN 8525.20 Radio Communication Equipment : HSN 8525.20

7. 8.

9. 10. 11. 12.

Annexure B The list of activities registerable as IT services and IT enabled services

1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. 21. 22. 23. 24. 25. 26. 27.

Computer training institutes/centers. Data Processing. Data Entry Operation services. Computer Aided Designing / CAD. Web Designing services. E-mail, data fax and Internet fax services. Cyber parlors. Remote access cyber services. V-SAT / Internet Protocol Advantage services. Desk Top Publishing. Web Service Providers. ISDN service providers. Infonet services. Cyber Libraries. Computer System AMC holders. Remote Diagnostic & Repairs services. Technical Service providers viz. System Integration, out sourcing, etc. E-marketing / e-commerce services. Internet Consultancy Services. Computerised special effect studios. Videographing & Conversion Center. Video Conferencing Centre (Parlours) Digitisation of archives Digital photo studio Computerised Screen Printing Units. Smart Cards Set-up Multi media development units.

The list is illustrative and not exhaustive.