ESC for removal of 20% tax by Japan on Indian software exports
By siliconindia staff writer   |   Monday, 29 March 2004, 20:30 IST
Printer Print Email Email
NEW DELHI: The ESC on Monday asked for elimination of the 20 per cent withholding tax by Japan on Indian software and services saying the tax was making it difficult for Indian companies to access the Japanese market. "The withholding tax is creating hardships to the Indian software exporters to Japan. This issue has to be taken up with Japanese authorities for a solution to be arrived at the earliest", the Electronics and Computer Software Export Promotion Council (ESC) chairman PK Sandell said. "Indian software products and services are marked up by 20 per cent in Japanese market which has considerably affected its market access as compared to entry of similar products from China", Sandell said. Indian professionals and entrepreneurs particularly from the SMEs are finding it difficult to get multiple entry visas to visit Japan on business promotion tours, he said, adding that this had adversely affected the steady scouting of the market and building contacts there. India's software and services exports to Japan has been growing at the rate of 12 per cent in 2002-03. It has touched $265 million in 2002-03, he said.

siliconindia