Budget wish list below from Microsoft
Information & Communication Technology is a key enabler in the development of
o Clarity on Taxation
The software industry requires clarity on taxation which is applicable to software. Various modes of delivery of software and licenses lead to confusion on the exact taxes to be levied. The taxation authorities end up levying both excise duty/CVD as well as services tax. There must be clarity and consistency on tax applicable for software. Classifying all types of software as a service may be a good way to achieve that.
o IT for creating employability & enhancing the competitiveness of the SMB/SME sector
Tangible incentives/benefits to be provided to SMBs to help them upgrade their IT infrastructure. For instance, IT software solutions should be included in incentives available to SMBs in schemes such as those offered by the Ministry of Micro, Small and Medium Enterprises for technology upgradation (Credit Linked Capital Subsidy Scheme- CLCSS).
o IT in education and skilling
An IT literate workforce is critical to increase productivity and keep labour costs low. Some immediate steps could include
· encouraging telecom operators like BSNL to offer an affordable ‘Education PC’ at < Rs500 per month which includes a laptop, broadband and educational software & application services.
· 100% depreciation on capital investment in IT by companies and Income Tax rebates to individuals for acquisition of computers once in 3 years subject to a limit of Rs. 50,000/- and up to Rs. 1000/- per month deduction from taxable income for broadband access will encourage the use of broadband in low penetration sections of the economy.
o Accelerating implementation of e-governance through IT
· Increasing outlays for mission mode projects under the National e-Governance Plan and incentives to the state governments.
· Use of IT in societal projects like NREGS & National Rural Health Mission would make the service delivery efficient, effective & more accountable/transparent; may be 5% of money for such schemes should be earmarked for IT to ensure the end-delivery is significantly improved.
Warm regards,
Consulting Associate
Genesis Burson-Marsteller
THE HOLMES REPORT, 2008 CONSULTANCY OF THE YEAR
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