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Panel draws attention to tax issues
April, 04th 2008
A high-level group constituted by the Planning Commission has asked the Government to address the tax issues faced by IT and BPO units. The group said the introduction of income-tax benefits for the IT units in special economic zones (SEZs) has created a problem for units in the Software Technology Parks of India (STPI) as the tax sops for STPI are scheduled to be phased out in March 2009. If this happens, a non-level playing field will be created between STPI unit s after March 2009, as they will not get income tax benefits, and SEZ units which will get such benefits. It is imperative for the Government to address the issue, the group said in its report on the services sector.
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