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% :: form 3cd :: ACCOUNTING STANDARD :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: articles on VAT and GST in India :: Central Excise rule to resale the machines to a new company :: TDS :: cpt :: ARTICLES ON INPUT TAX CREDIT IN VAT :: empanelment :: VAT Audit :: due date for vat payment :: ACCOUNTING STANDARDS :: VAT RATES :: list of goods taxed at 4%
 
 
General »
 While filing tax in India, NRIs do not have to report overseas assets
  Clarification regarding applicability of Section 16 (1)(a) of the Companies Act. 2013 with reference to cases under corresponding provisions of Companies Act. 1956 -reg.
 SH. VISHWA NATH GUPTA Vs. PRINCIPAL COMMISSIONER OF INCOME TAX CENTRAL, KANPUR AND ANR.
 No tax scrutiny of big transaction if it matches income
 Clarification regarding applicability of Section 16 (1)(a) of the Companies Act. 2013 with reference to cases under corresponding provisions of Companies Act. 1956 -reg.
  Home loan tax reliefs often missed by taxpayers
 Income tax department launches online facility for linking Aadhaar and PAN
 Home loan tax reliefs often missed by taxpayers
 Tax headache in India is a bonanza for global accounting firms
 Activities To Be Treated As Supply Even If Made Without Consideration Under CGST ACT
  Haryana Goods and Services Tax Bill passed

STPI seeks tax benefits for IT and ESDM units in revised IPR
March, 26th 2014

The Software Technology Parks of India (STPI) has urged the state government for reintroduction of provision of zero rated sales under Odisha VAT act for the IT (information technology), ITes (IT enabled services ) and ESDM (Electronic System Design and Manufacturing) units of the state to make them globally competitive in the draft Industrial Policy Resolution (IPR).

Earlier, under section-18, the tax rate levied was zero on the goods sold in course of inter-state trade or commerce, in course of export out of the territory of India or to a dealer having business under Special Economic Zone (SEZ), software technology park (STP), electronic hardware technology park (EHTP) and to export oriented units (EOUs).

However, after amendment in 2008, the benefits were reduced to capital goods used directly for production.

STPI feels that the provision, prior to amendment, had helped the IT and ITes units both in STPI and SEZ to minimize the inputs costs and made them cost competitive in the international market. The IT and ITes units incur major cost at the setting up a unit like building a software development block, food court, residential training facility, utilities block, networking centre, voice and data communication centre and recreational facilities and other employee utility facility and all the input material cost attract VAT or CST (central sales tax) at the time of setting up the facilities. Similarly, the IT and ITes, mostly service units, incur major expenses on maintenance and purchase of consumables for capital equipment like air conditioners, computer and peripherals, diesel generator sets and UPS to run 24/7 without any disconnection from power, networking equipment and electrical installations.

“As the exporting unit does not attract VAT (output tax), there is no clarity about how these input taxes will be calculated and claimed for reimbursements”, read a note from STPI, Bhubaneswar.

The IT exports has touched about Rs 2000 crore in 2012-13 from the state, which has an ambitious target of achieving Rs 15000 crore IT turnover by 2020. Similarly, a number of projects IT and ITes units have kicked off operation under STP and SEZ and new opportunities in the IT sector in the state is likely to open up with the recent liberalised policies of the Union government.

“In this connection, it is widely felt that re-introduction of zero rated sales under section-18 of the VAT act, 2004 (pre-amended) allowing benefits to procure all types of capital good as per their authorized operations by the ITTes, ESDM units under EoU/ STP/EHTP /SEZ as approved by Government of India and offering tax exemptions on revenue operating expenses would make the exporting units cost competitive in global market”, the note emphasized. Besides, STPI has made suggestions for inclusion of STP and Electronic manufacturing clusters (EMCs), IT/ITes, ICT and ESDM industry, in the last paragraph 7.4(a), ESDM industry in para 7.4 (b) among others in the draft IPR.

“We would like to request you to kindly forward the same to Ipicol ( Industrial Investment Promotion Corporation of Odisha Limited) with a recommendation to consider the suggestions and proposed changes in IPR for promoting the IT/ITes and ESDM sector of the state”, Manas Panda, Director (in charge), STPI-Bhubaneswar wrote to the state IT secretary. Meanwhile , the IT department has forwarded the proposals and suggestions to Ipicol for incorporation, as felt appropriate, in the revised IPR.

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2017 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Organic SEO Outsourcing Organic Search Engine Optimization Outsourcing Organic Website SEO Organic SEO India Website SEO India Organic Search Engine Optimization India Organic Internet SEO India Organic Web

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