23 April 2008
MS.SHEETAL METHA IS RIGHT THAT STPI EXEMPTION IS NOT TOUCHED BY 08-09 BUDGET. THE CHANGGES WHATEVER MADE, IMPACTING THIS SECTOR ARE REPRODUCED BELOW
UNION BUDGET 2008-09: IMPLICATIONS FOR THE INFORMATION TECHNOLOGY COMPANIES BUDGET 2008-2009 IMPACT ON BPO/ITES
DIRECTLY IMPACTING IT SECTOR
1. No confirmation on the extension of the income tax exemption available to Companies /units registered as Software Technology Park Units ('STPs') beyond Financial Year 2008-09.
2. Imposition of service tax on the software and related services and changes in the CENVAT Rules.
3. Increase in the excise duty applicable on branded / packaged software from 8% to 12%.
4. Changes in FBT related provisions.
5. Issues related to income tax, service tax, etc.
INDIRECTLY IMPACTING THE IT SECTOR
6. Significant increase in the personal income tax rates and slabs, which will benefit employees of IT corporates.
FOR DETAILED ANALYSIS OF ABOVE PROVISIONS,PL.VISIT THE ABOVE BLOGSPOT. R.V.RAO
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