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: articles on VAT and GST in India :: TDS :: empanelment :: TAX RATES - GOODS TAXABLE @ 4% :: form 3cd :: VAT RATES :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: VAT Audit :: cpt :: list of goods taxed at 4% :: ACCOUNTING STANDARDS :: due date for vat payment :: ARTICLES ON INPUT TAX CREDIT IN VAT :: Central Excise rule to resale the machines to a new company :: ACCOUNTING STANDARD
« News Headlines »
 India is moving towards a flawed GST
 ICAI to organise two-day international conference in Hyderabad
 Here's how to calculate tax payable on your capital gains
 Income Tax calculations for the financial year 2016-17
 CPE Events 17 October - 22 October 2016
 High Court raps I-T Department for wrong tax demand
  CBDT signs 5 advance pricing pacts with Indian taxpayers
 Finance ministry warns tax officials of action against GST protest
 Big changes for small units under GST
 Parliament’s winter session to begin on November 16 to expedite GST rollout
 Income-tax (27th Amendment) Rules, 2016 - 92/2016

Indian IT sector welcomes extension of tax breaks UPDATE
May, 22nd 2008
India's Finance Minister Palaniappan Chidambaram's announcement to extend the tax holiday for software companies by one year under the Software Technology Parks of India (STPI) scheme has evoked a positive response from the IT industry.

'The IT industry welcomes this move, which was on expected lines. This allows companies to prepare for the sunset exemption clause much better given the current tougher global environment,' chief financial officer of Wipro Ltd. Suresh Senapaty, told Thomson Financial News.

Also, this makes the case of STPs fair at par with the export oriented units (EOUs), which had been assured of such extension as part of the Exim policy, Senapaty added.

Shares of software companies rose after Chidambaram said income tax exemption for Indian outsourcers based in technology parks will be extended to March 31, 2010, from next year, while he was replying to a debate on his budget proposals in parliament.

'The extension of (the) tax holiday for IT companies has been very timely and will help face the impending challenges of prevailing global economic uncertainties as well as strengthening (the) Indian rupee,' N. Ramachandran, a member of board and chief financial officer of iGATE Global Solutions said.

'It is indeed good news for iGATE as our effective income tax rates will now be several percentage points lower for the financial year 2009-10,' he added.

Archana Srinivasan, vice president of finance, Cybernet-SlashSupport said: 'This step will give some reprieve to the STPI units and also help them retain their competitive edge, especially in the current market scenario of the fluctuating rupee.'

According to Ravi R an IT analyst at Karvy Stock Broking, the growth for fiscal year 2010 for the IT sector, which has been going down due to the effective tax rate increase, will now be reinstated.

'The companies will have a lot more time to acquire land under the Special Economic Zones (SEZs)-- land acquisition is a painful process in the country -- as the STPI regime continues,' the analyst said.

Pankaj Kapoor, an IT analyst with ABN Amro said that the move is good news for the industry, especially when fears of a possible U.S. recession is looming large.

'Given the delays in construction, meeting targets for software companies have become extremely difficult. With this extension, the software firms get one more year to plan,' Kapoor said.

'This decision is particularly beneficial for BPO companies and the small and medium segment, who have been greatly impacted by the rupee appreciation, inflation and signs of slowdown of the U.S. economy,' Som Mittal, president of India's top IT trade body, the National Association of Software and Service Companies (Nasscom) said in a statement issued in response to the government's move.

STPI is an autonomous society set up by India's Ministry of Information Technology in 1991 with the objective of encouraging, promoting and boosting software exports from India.

Shares of Tata Consultancy Services, India's biggest software maker, rose 3.15 percent to 910.80 rupees at the close of trading on the Bombay Stock Exchange.

Infosys Technologies the second-largest software maker, was up 5.15 percent at 1,750.75 rupees, while Wipro, the third-biggest, gained 4.7 percent to 479.20 rupees.

The IT index of the Bombay Stock Exchange closed at 4,237.81, up 5.24 percent, while the overall Sensex closed at 17,378.46, up 2.13 percent.

Home | About Us | Terms and Conditions | Contact Us
Copyright 2016 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Enterprise Resource Planning Solutions ERP Solutions Enterprise Resource Planning Software Solutions ERP Software Solutions Supply Chain Management Solutions SCM Solutions Supply Chain Management Software Solutions SCM Software Solutions Enterprise Resource Planning Solutions India ERP Solutions India Enterprise Resource Planning Software Solutions India ERP Software Solutions India Supply Chain Management Solutions India SCM Solutions India Supply Chain Management Software Solutions India SCM Software Solutions India

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