IT firms look to full Budget for more clarity on future
"The industry was expecting some clarity on the transfer pricing and service tax aspects that create a lot of confusion. We are happy that some steps have been taken on the education and infrastructure front," said Ashank Desai, founder, Mastek. He added that all hopes were on the full Budget to bring more clarity on the future of the industry.
The industry was expecting some plain-talk on the language providing tax exemption status for IT SEZ under section 10AA(7). The current wording of the section restricts the tax benefits available to IT companies operating under SEZ scheme, even though the intent of the section is to provide 100% tax exemption to companies.
"We want the government to simplify multiplicity in service tax and
make investor-friendly rules for transfer-pricing to help us manage the
downturn. This is the time to give the message to the whole world that
The industry was also expecting the extension on the STPI (Software
Technology Park of India) tax holidays beyond 2010.
The impact of the slowdown is expected to be felt more by small and medium
IT and BPO companies. With downturn in the real estate sector in
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