Indian Tech Firms Seek Clarity on GST,Taxes at Budget


NEW DELHI: Technology companies are looking for more clarity on implementation of GST, tax on software licences and thrust on developing infrastructure in small cities in the first budget of the new government led by Prime Minister Narendra Modi.

Technology majors like Microsoft and BlackBerry, software services firms and industry bodies like Nasscom expect the Modi government to focus on leveraging ICT for economic growth and maximising the reach of policies.

"Government is already focused on improving manufacturing output. I am expecting some specific policy announcements in the Budget to improve local manufacturing like cheaper power, scalable infrastructure, one-stop regulatory clearances and long term tax incentives," Microsoft India Chairman Bhaskar Pramink told PTI.

The government has already indicated boosting indigenous electronics manufacturing to check dependence on imports and has said that electronic manufacturing will be a priority.

"I also hope to see some simplification in our taxation rules. I hope government will do more to promote a tax regime that is stable and remove retrospective tax implications," he added.

Pramanik said he hopes for policy direction to reduce tax disputes by implementing advance pricing agreements, accelerating mutual agreement procedures and implementing the cost plus methodology of tax on captive development centres.

"And I am looking forward to some timelines to implement GST and abolish VAT," he added.

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Source: PTI