New Delhi: Software technology parks (STP) should be exempted from taxes for another 10 years to encourage the IT sector, the National Association of Software and Services Companies (NASSCOM) said in a pre-budget memorandum Tuesday.
The tax exemption for the STPs for another decade will enable IT companies to adjust to special economic zone (SEZ) framework which will take two to three years to get operational, the industry lobby said in its memorandum to the finance ministry.
NASSCOM urged that the extension of the tax exemption should correspond with the tax holiday provided for exporting units in SEZs.
NASSCOM also appealed for tax exemption to non-residents outsourcing their back office processing and call centre activities to India.
It urged the government to avoid duplication of certain specified items by removing ambiguous terms such as "export turnover" by the government.
It has also advocated for the introduction of a system of consolidated tax returns for IT companies.
For the enhancement of the BPO (business process outsourcing) industry, NASSCOM has urged the government to offer tax exemption to non-resident Indian (NRI) entrepreneurs so that they are encouraged to outsource their back office operations to India.
(With inputs from IANS)
Comments
0 comment