MAIT, the apex body representing India’s Information Technology industry hardware, training and designs & manufacturing in a memorandum to the Ministry of Finance, Government of India, has stressed upon the need for a stable policy regime and growth-oriented measures to boost IT hardware, training industry in the country. MAIT President, Shree.AlokBharadwaj commented: “With lower-than-expected consumption of IT products in the Financial Year 2011-12 owing to the Thailand flood and Rupee devaluation, we are now hoping for long-term growth-oriented & investment friendly policies to provide much needed drivers.” While pointing out the need for rapid expansion of IT hardware, training industry, Shree.AlokBharadwaj said that “In India’s economic transformation, Information Technology Training is a big enabler. MAIT members have repeatedly emphasized that a long-term, holistic fiscal policy framework is the need of the hour to encourage manufacturing and a much-needed investment fillip to the IT Training industry in India”.
“India’s Information Technology hardware, training industry was $ 16 billion or Rs 70,000 cr size in the year 2010-11. Less than one third of this was India manufactured. This must change. Hence providing appropriate incentives for InformationTechnology manufacturers, finished products and components in India would have a positive impact on Information Technology manufacturing investments.” On the same lines, Shree.Sabyasachi Patra, Executive Director, MAIT said: “Manufacturing is an idea whose time has come. We need to realise our strengths and focus on those to take the manufacturing to the next orbit.”
The MAIT memorandum to the finance ministry includes 7 vital recommendations for Union Budget 2012-13, some of which are:
1. Removal of anomaly in Inverted duty structure & abolition of 4% special additional duty (SAD)
2. Withdrawal of MRP based assessment for IT products
3. Custom Duty correction for lenses & accessories
4. Abolition of MAT & continuance of exemption benefits on Manufacturing in nominated areas as well as schemes
5. Correction of double taxation in AMCs (Annual Maintenance Contracts) as both goods and as services.
6. Confirmation on GST implementation timelines
7. Clear guidelines on Transfer pricing to eliminate ambiguity & unpredictability to enhance investor’s sentiments.
Source: IT VAR News Network
“India’s Information Technology hardware, training industry was $ 16 billion or Rs 70,000 cr size in the year 2010-11. Less than one third of this was India manufactured. This must change. Hence providing appropriate incentives for InformationTechnology manufacturers, finished products and components in India would have a positive impact on Information Technology manufacturing investments.” On the same lines, Shree.Sabyasachi Patra, Executive Director, MAIT said: “Manufacturing is an idea whose time has come. We need to realise our strengths and focus on those to take the manufacturing to the next orbit.”
The MAIT memorandum to the finance ministry includes 7 vital recommendations for Union Budget 2012-13, some of which are:
1. Removal of anomaly in Inverted duty structure & abolition of 4% special additional duty (SAD)
2. Withdrawal of MRP based assessment for IT products
3. Custom Duty correction for lenses & accessories
4. Abolition of MAT & continuance of exemption benefits on Manufacturing in nominated areas as well as schemes
5. Correction of double taxation in AMCs (Annual Maintenance Contracts) as both goods and as services.
6. Confirmation on GST implementation timelines
7. Clear guidelines on Transfer pricing to eliminate ambiguity & unpredictability to enhance investor’s sentiments.
Source: IT VAR News Network
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