Published & Updated as on - 2010-02-19
Nasscom,
the representative body of IT-BPO firms in the country, on Wednesday said it
has recommended that the STPI initiatives are brought at par with special
economic zone (SEZ) schemes to help smaller firms remain competitive. “In our
Budget 2010-11 wishlist submitted to the government, we have recommended that
the STPI (Software Technology Park of India) initiatives should be at par with
SEZ schemes as this will help the small and medium companies remain
competitive,” Nasscom President Som Mittal said. Indian IT firms are looking
for an extension of the tax holiday for the STPI scheme.
“We
want the STPI extension to happen particularly for SMEs and Tier II and III
cities as its more viable for them. It (STPI) should mirror the SEZs as this
would provide a level-playing field for the entrepreneurs,” Mittal said. The
sunset clause under section 10A and 10B of the Income Tax Act, which expires
this year, gives a tax holiday to the companies operating under the STPI scheme
and these benefits are available till 2011.
Currently, the
IT companies pay a minimum alternative tax of 15 per cent. It was raised by
four per cent in the last budget, which takes the effective tax rate to about
20 per cent. Without the STPI tax exemption, the industry will have to pay
corporate tax of over 33 per cent. Mittal also said that the government needs
to increase the outlay on education and e-governance projects.
Source:
realty.maadhyam.org 19/2/10
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