NEW DELHI: Minister of State for IT and Telecom Sachin Pilot
on Tuesday expressed hope that the exemptions and benefits
given to the Indian ITfirms would be extended in the
upcoming Budget to help them cope with the slowdown.
"It is important that we have a view which will foster
investment and create job opportunities. The IT sector
has been growing...and so we hope the exemptions and
benefits that the IT sector has been getting, there
would be some more relief given," Pilot told reporters here.
The sector currently employs about 2.5 million people directly
and about eight million indirectly.
"It is expected that another one lakh people would be added
this year," Pilot said.
The Indian IT sector was hit by the global financial meltdown
and the strengthening dollar pulled it down further.
The industry has been demanding further extension of the sunset
clause for deduction in respect of export profits under sections
10A and 10B of the Income Tax Act. This was extended in the last
Budget to March 2010.
While IT companies pay a minimum alternative tax of 15 per cent,
which was raised by 4 per cent in the last Budget, their effective
tax rate is still around 20 per cent. When the STPI scheme ends,
this will go up further.
The companies have also been demanding clarity in policy matters,
especially SEZ and Direct Tax code.
"There are certianly ambiguities in the direct tax code which is
not a budget issue but we have raised it and in case of SEZ,
clarification and so on," Tata Consultancy Services Executive
Director and Chief Financial Officer S Mahalingam said.
The extension of the tax holiday for a longer period was
a good idea for the industry as a whole, added Mahalingam.
According to industry body Nasscom, India's software and BPO
exports are expected to grow at an annual 13-15 per cent to
touch $56-57 billion.
Quotegems for the Day :
Why not upset the apple cart? If you don't, the apples will rot anyway. -Frank A Clark
posted by http://uk.groups.yahoo.com/group/quotegems/message/1644
No comments:
Post a Comment