The government had withdrawn the tax benefits under Section 10A / 10B from March 31, 2011. Speaking to a select group of journalists, he said that those who have exited were largely the small and medium-sized companies that have revenues between Rs 5 crore and Rs 10 crore.
During the last two years, around 1,000 IT firms have exited STPI units citing non-availability of tax sops. However, I hope that they will come back once they realise that there are a slew of other bigger benefits at STPI units such as single-window export clearance, he said.
Though exits have happened, a good number of additions also took place. Last year, around 200 units have joined the STPIs, he said. According to the report of the sub-group of the inter-ministerial standing committee released in April, the number of units registered under the STP scheme reached 8,455 in 2008-09, and have declined since then.