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| Edited By: |Source: PTI |Updated: Mar 17, 2018, 03:03 AM IST
The IT and ITeS (IT enabled Services) industry has requested the finance minister, who is set to present Union budget on February 26, to either continue the tax benefits existing under 10A/10B for an additional ten years or come out with an alternative scheme.
It has also appealed the government to invest in the security infrastructure in the country to ensure incident free, peaceful and secure societies.
According to ITsAP (Information Technology & Services Industry Association of Andhra Pradesh - Formerly HYSEA), the incentives under the STPI scheme should be in line with what IT companies get in an SEZ.
The SMEs are the hardest hit with the impending sun-setting on 10A/10B benefits in 2011 and we need government to address this, Narasimha Rao, president ITsAP told PTI.
He also said the movement of business from STPI to SEZs or between SEZs is extremely restrictive. It makes companies uncompetitive and the government should allow for greater flexibility for the IT industry in moving business and resources between the SEZs and from other entities.
Shakti Sagar, managing director, ADP Pvt Ltd said the STPI scheme should be extended to three to five years instead of year to year, single nodal agency for all approvals and clearances of IT firms including central excise & customs.
The peak tax rate of 30% for salaried employees should be reduced to 25%. This will increase the purchasing power of the individual which in turn stimulate demand for core sectors, Shakti Sagar said.
Echoing similar views, Ramesh Loganathan, VP, products and managing director Progress Software-India said there has to be some clarity on the FBT and hoped for a more favorable tax regime for such business expenses.
Besides extension of STPI benefits for a few more years, Suman Reddy Eadunuri managing director, PegaSystems WorldwideIndia said the existing norms should also changed for granting government IT contracts to provide fair chances to newer players who have innovative and advanced solutions.
