Budget Wishlist 2009

Pre-Budget Expectations:-

 

-         The standard expectation would be extension of 10 A benefits (STPI Scheme);

+ The call center processes in the BPO / ITeS environment typically has a longer gestation period for the returns to kick in. The STPI scheme and the tax benefit actually provides a great deal of comfort in setting up new processes and then lead it in to good profitability. Customer demand, the nature of the work being delivered and security and privacy regulations – all go a long way in dictating substantially larger investments by call center companies in running such processes.

 

-         plus greater SOP's in Tier 3 or 4 locations for BPO/ITeS Companies;

+ Infrastructure is a critical requirement in all call center operations, be it physical facilities or power, technology or other related facilities. There needs to be a better visibility from the government in terms of identification of the facilities and the SOP's as the business case to the clients needs to be compelling for them to buy in. Obviously the Customer Spend Profiles and consequently the RPU's will be lower in non-urban areas.

 

-         Removal of FBT on ESOP's and generally any payments made to the employee other than salary;

+ There are a lot of items which get classified business promotion expenses and are liable to FBT – the removal of such items will be of great benefit to the organization.

 

-         Reduction in the TDS percentage on payments received from our clients (Sec 194–J of the Income Tax Act)

+ In any given month there are sums deducted on invoices raised for services delivered by us to our clients, which are substantial, but then the final computation, balancing and refunds on taxes deducted happens only in the following financial year/s on completion of assessment.

 

-         Reduction in Customs Duty;

+ This will result in the reduction of the cost of purchase and thereby increase competitiveness of the organization.

 

-         Relaxation of SEZ Norms to include a higher percentage of existing business while starting a new SEZ facility. 

+ Relaxation of entry criteria will result in increased benefits to organizations

 

-         investments in technology and telecom infrastructure, speedy decisions on 3G and spectrum allocation etc

+ This is holding up the further penetration of Value Added Services (VAS) for GSM providers, which is business opportunity lost.

 

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Regards,
Parabjeet Singh
Clea public relations, Bangalore.
+919886885960.
parabjeet@cleapublicrelations.com