A Positive Budget, says Kerala IT Industry

TechnoparkToday.com(July, 2014): Group of Technology companies (GTech) and NASSCOM Regional Council have termed the Union Budget as positive. Members of the industry bodies welcomed the proposed legislative amendments which would provide clarity on a slew of sticky issues like Transfer Pricing, Retrospective Taxation and Advance Pricing Agreement Scheme. The IT industry has been pushing for stability and predictability in the regulatory environment and longevity of policies. These amendments are a step in the right direction not only to usher in investor confidence but also to bring about a faster pace in the settlement of tax disputes.

The industry hailed the allocation of Rs 10,000 cr as risk capital for start-up companies; a decision that will go a long way in identifying, nurturing and showcasing entrepreneurial talent amongst the youth. The launching of the pan India programme “Digital India” and the “Start Up Village Entrepreneurship Programme” provide a facilitating ecosystem for aspiring IT entrepreneurs as they gain improved access to broad band connectivity even in the rural areas of the country. Special emphasis on software product start-ups is particularly noteworthy.

The industry appreciated the setting up inter-ministerial, inter-departmental e-biz platform by the end of the calendar year. It is felt that this will go a long way in ensuring that various arms of the Government work in close coordination with each other for the speedy completion of projects.

However, the industry bodies felt that the contentious issue of Minimum Alternate Tax for units in Special Economic Zones could have been addressed.

“Taking into account that less than 40 days were available, the Finance Minister has done a commendable job. The IT industry has reasons to cheer although we expected more emphasis on export promotion. We see most proposals for the industry, especially those on taxation, as steps that would help see India as a less difficult place to do business in “said Mr. V K Mathews, Chairman GTech and NASSCOM Regional Council for Kerala.