Latest Expert Exchange Queries
sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
 
 
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Service Tax | Sales Tax | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Indirect Tax | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing
 
 
 
 
Popular Search: list of goods taxed at 4% :: TAX RATES - GOODS TAXABLE @ 4% :: empanelment :: form 3cd :: Central Excise rule to resale the machines to a new company :: ARTICLES ON INPUT TAX CREDIT IN VAT :: VAT Audit :: ACCOUNTING STANDARD :: VAT RATES :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: due date for vat payment :: TDS :: cpt :: articles on VAT and GST in India :: ACCOUNTING STANDARDS
 
 
News Headlines »
 8 benefits you must know about this tax-saving mutual fund
 10 most important income-tax changes which will apply from April 1
 Delhi: 54 CAs, company secretaries on radar in I-T crackdown against black money
 10 Income Tax Rules That Will Change From April. See Details Herea
 Looking for last-minute tax planning with Section 80C investments? Here's help
 Aadhaar mandatory for filing income tax return
 Will Aadhaar linkage solve India's income tax woes?
 GST roll out from July 1 will make goods cheaper: Jaitley
 Aadhaar To Be Mandatory For Filing Income Tax Return, PAN Application
 7 best tax-saving solutions which can help you save money
  No proposal to replace Income Tax with Banking Cash Transaction Tax

Give tax break to IT firms beyond 2009: CM to PM
February, 06th 2007

Chief Minister H D Kumaraswamy has urged the Centre to let the IT sector continue to enjoy the tax holiday beyond 2009.

The previous NDA government at the Centre had in 1999 put in place a 10-year income tax benefit for small units in the IT sector which expires in March 2009. After that date, only special economic zones (SEZs) will get the benefit, unless an extension is put in place.

The chief minister's concerns are understandable: Brand Bangalore in the IT sector is the byword for quality now and gives it the sheen that is the envy of cities and countries across the world. The CM push also carries a lot of weight, as close to 40% of Indias software exports emerge from the state.

Kumaraswamy, in a letter to Prime Minister Manmohan Singh, has specifically asked for the extension of tax holiday under Sections 10A and 10B of the Income Tax Act for units under the Software Technology Parks scheme. Failure to extend this tax holiday beyond 2009 would be an impediment for the growth of the small and medium enterprises (SMEs), he said.

Only 19 software companies in India, whose exports are worth more than Rs 500 crore, can establish their own SEZ campus and avail of income tax benefits. That leaves close to 4,800 SMEs with exports less than Rs 500 crore to migrate to a defined SEZ operated by either the government or private sector, if they want to avail of the benefit.

This will not be very convenient for a large section of the industry to physically shift to SEZs. It will leave behind a majority of SMEs and IT firms that depend heavily on the tax holiday, Kumaraswamy wrote.

Uncertainty about continuation of the tax holiday has put expansion plans of many multinational companies on hold. While the SEZ scheme would help to some extent, the dichotomy between the SEZ and the STP scheme will create inconvenience in the industry.

To boost IT, the Karnataka government offers special assistance, incentives and concessions for units with fixed assets of up to Rs 100 crore. Benefits include: Entry tax exemption: on computer hardware, computer peripherals and other capital goods, including captive power generation sets during the implementation stage, which can be extended up to five years from the date of commencement of implementation.

Quick clearances from the Karnataka State Pollution Control Board for companies that use captive diesel gensets.

Concessions on company registration charges for expansion, diversification, and modernisation.

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2017 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Application Management Solutions Application Management System Application Management Software System Application Management Development Application Management Software Development

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions