International BusinessExtend I-T tax benefits to software exporters: Nasscom to FM
The IT industry today asked the government to extend the income tax benefits to software exporters beyond this year to sustain growth and overcome the downturn challenges.
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The industry, led by both the software and the hardware associations, today met Finance Minister Pranab Mukherjee and demanded incentives for their respective industries.
Export revenues of software firms are exempted from income tax but the exemption would come to an end this fiscal.
"It is imperative that the government announces an extension of fiscal benefits under section 10 (A) and (B) to mitigate the impact of recession and protectionist measures being adopted globally...
"This is particularly important for SMEs to facilitate their continued growth, provide parity with incentives under the SEZ scheme and encourage industry to move into the tier-II and III cities," Nasscom President Som Mittal said.
Nasscom has asked the government to resolve duplicity in indirect taxes for packaged software, provide clarity in policies for service tax refunds, develop uniform approach on transfer pricing and amend Fringe Benefit tax on ESOPs.
"We have sought removal of 4 per cent Special Additional Duty on all IT products and components," MAIT ED Vinnie Mehta said.