Dear Sir
Reference to the Budget opinion column "Unveil your dream Budget 2009" in Business line,
Please find below the Budget wish list / expectations from Mr. Suresh Ramachandra, CFO - Applications and Process Solutions, Perot Systems
From an IT /ITES industry perspective, the following are on the wish list that we expect the FM to consider:
· Extension of availability of benefits under Sections 10A and 10B for STPI and EOU units beyond the sunset date of March 31, 2010
· Abolition of MAT for STPI and EOU units enjoying tax holiday. This defeats the very objective of a tax holiday
· Abolition of FBT, especially levy of FBT on ESOPs, which is not a "collective benefit" granted to employees. Also several expenses, which are incurred in the normal running of the business, are included under the levy of FBT. FBT on expenditure like Gifts to customers, Client meetings, Tour & Travel and Conveyance which have no element of disguised perquisite should not be liable for FBT
· The interim Budget had stated that the anomaly in computing the SEZ eligible profits would be rectified. At present as the ratio prescribed considers the proportion of the SEZ turnover to the total turnover of the Company and not just the SEZ unit's turnover. This reduces the quantum of exemption, if the Company has non SEZ units also and the anomaly must be rectified in the coming Finance Bill.
· Service Tax - Need to speed up the refund of service Tax and going forward exempt service tax for all Export oriented units.
· Look at possible reduction of Tax rate for corporate tax rates and look at reduce cess and surcharge.
These are the things we request the Finance Minister to consider given the current economic situation that IT / ITES industry is facing
Please let me know, if you need any additional inputs from Mr.Suresh Ramachandra. We would be happy to coordinate for the same.
Warm Regards
Jeeva Rekha
Genesis Burson-Marsteller
THE HOLMES REPORT, 2008 CONSULTANCY OF THE YEAR
4th Floor,
Email: jeeva.rekha@bm.com | Mob: +9198840 60032 | Tel: +91 (44) 2825 1981/78 | Fax:+91 (44) 2825 1983
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