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Assocham has urged the Finance Minister, Mr P. Chidambaram, to let BPO companies and other ITES providers enjoy tax concessions for venture capital investments. The Finance Minister had announced a change in Budget 2007-08 for discontinuation of tax benefits to these entities.
In a representation to the Finance Ministry, the chamber has said that status quo should be maintained so that all IT, ITES, telecom and wireless value-added services keep enjoying the tax sops. The chamber has argued that venture capital investments in knowledge industries will lead to innovation.
