Country's IT sector is waiting expectantly for the upcoming Union Budget 2010-11 as the industry is hoping for a tax holiday under the Software Technology Park (STP) scheme.
With the sunset clause, under section 10 A and 10 B, coming to an end, a tax holiday for the companies operating in software technology parks can be allowed.Presently, the IT sector's effective tax rate builds up to around 20 per cent inclusive of a minimum alternative tax of 15 to 19 percent, but if the STPI scheme is withdrawn, the industry straightaway would have to bear a corporate tax of over 33 percent.
Nation's apex software body NASSCOM, on its part, has been lobbying hard with the government for the tax holidays to continue, but its the Budget 2010-11, which would decide the fate of country's IT industry.
With the sunset clause, under section 10 A and 10 B, coming to an end, a tax holiday for the companies operating in software technology parks can be allowed.Presently, the IT sector's effective tax rate builds up to around 20 per cent inclusive of a minimum alternative tax of 15 to 19 percent, but if the STPI scheme is withdrawn, the industry straightaway would have to bear a corporate tax of over 33 percent.
Nation's apex software body NASSCOM, on its part, has been lobbying hard with the government for the tax holidays to continue, but its the Budget 2010-11, which would decide the fate of country's IT industry.
