Indian information technology industry requires a morale boosting in sector, over all growth oriented and an uplifting india budget, said nasscom president mr.sommittal. "indian information technology industry is reeling under a lot of negativity and depression. a big amount of endorphins should be pumped into it now to make it steady market," mr.sommittal said. nasscom trade association has made specific suggestions related to tax issues, transfer pricing, and support for the sme sector. the special economic zone act 2005 was enacted to stimulate exports and generate large scale employment in the information technology sector in india. various policy changes and the imposition of the minimum alternate tax on special economic zone units from assessment year 2012 has diluted the incentive and created a deterrent for future growth of sezs, said mr.sommittal. nasscom has recommended that the mat on special economic zone income be withdrawn as it is counter to the long-term policy announced by the government through the special economic zone act 2005. nasscom trade association said the information technology sector has been subjected to unreasonably high assessments based on transfer prices and consequently several enterprises have got into undue litigation issues. "we have recommended an approach to transference the backlog and provide certainty in the future for transfer cost issues. a safe harbour provision has also been suggested for past and current claims," mr.sommittal said. mr.sommittal said small and medium information technology company face an uncertain and volatile environment. nasscom trade association, they would find it impossible to rent spaces in special economic zone act 2005. and with the benefits under section 1Oa/1Ob also ending, they would not have a level playing field with their bigger counterparts. "a special scheme for supporting smes has to be created ," mr.sommittal added.
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