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: TAX RATES - GOODS TAXABLE @ 4% :: due date for vat payment :: ACCOUNTING STANDARDS :: VAT RATES :: cpt :: list of goods taxed at 4% :: ACCOUNTING STANDARD :: TDS :: ARTICLES ON INPUT TAX CREDIT IN VAT :: articles on VAT and GST in India :: VAT Audit :: form 3cd :: empanelment :: Central Excise rule to resale the machines to a new company :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes
 
 
News Headlines »
 Filing of online return for 4th quarter of 2016-17 — extension of period thereof
 CBDT simplifies ITR filing process from FY18
 Govt extends service tax return filing date to April 30
 No move to tax farm income, clarifies Arun Jaitley
 New board for indirect taxes to become operational from June 1
  9 changes that came into effect from April 1
 First time filing income tax? Here's all you need to know about Form 16 and Form 26AS
 New Opening Financial Controller Chartered Accountant (Manufacturing Plant) A Leading Company
 Income Tax Filing 2017: All you want to know about the single page ITR form SAHAJ
 How to benefit from investments in tax saving mutual funds
 60 per cent of income tax notices on fishy cash deposits returned

'IT cos should first sort out tax-holiday issue'
February, 08th 2007

IT and Communication Minister Dayanidhi Maran has lobbed back the problem of extending tax holidays for the STPI scheme to the IT industry. Indian IT industry lobby Nasscom has been demanding that the government should extend the tax holiday under the STPI scheme for another 10 years. Currently, the tax holiday scheme has a sunset clause which will expire in 2009.

Speaking at a Nasscom seminar on Wednesday, Maran said,"The IT industry should stand united and support the extension of the scheme for another 10 years. Some companies were in support of the SEZ scheme while others wanted the STPI scheme to be extended. "

The industry seems to be split between large companies that are setting up their own SEZ and medium and small companies which want the STPI scheme. It is not economical for mid and small IT companies to move to a SEZ since most of them do not have the scale or the investment capacity needed for a SEZ. Moving their new-growth options to the SEZs is also not economically viable for them.

The problem that BPO companies are facing is that most SEZs are outside city limits and hence BPO staffers would have to commute long distances. IT and BPO companies, especially the small ones, have been demanding that this large scale displacement will affect their business. Hence the government should extend the STPI tax holiday.

However, Nasscom chairman Ramalinga Raju said the entire industry favoured an extension of the benefits under the STPI scheme. "Ten years is the minimum extension that can be granted. Else, it will be an injustice to small and medium enterprises (SMEs)," he added.

Speaking on infrastructure around SEZ, Maran said, "The Prime Ministers Office has taken note of a recommendation suggesting integrated modern townships to be developed as they are imperative for sunrise industries such IT and BPO. We have to understand that infrastructure cannot be built overnight.

Mr Maran added that "such townships will not only take pressure off the large cities that are increasingly unable to cope with growing infrastructure demands. They will also help in decentralising other economic activities and spur growth of these cities. Almost all of the proposed integrated townships are to be based in tier II cities such as Ahmedabad, Bhopal, Coimbatore and Vishakapatnam, he added.

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2017 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Binarysoft Technologies - Our Experience

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