G Ravishankar, MD & CEO, Geometric, said, "Given the current outlook for the IT / ITeS / Engineering Services for the year 2010 -11, appreciation of the rupee, as well as emergence of various low cost destinations in Eastern Europe and Asia as alternatives, it would augur well for the government to:
- Ease norms for setting up of units in SEZs for the small and medium segment of the Indian IT companies
- Hasten implementation of the advanced pricing arrangement, provided in the 'proposed draft of Direct Tax Code' through introduction of an appropriate framework to address transfer pricing related matters
- Streamline the withholding tax process for non-taxable payments made to non-residents by eliminating the need to acquire a withholding order from the IT department
- Abolish withholding tax on ESOPs, at the time of allotment of shares to employees to avoid adverse cash flow impact on employees instead revert back to post sale taxation on gains accrued from ESOPs.
What do you expect from the forthcoming Budget for 2010-11? Tell us!
