Andhra Pradesh mulls tax on software exports

Wednesday, 20 June 2007, 07:00 Hrs
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Hyderabad: The government of Andhra Pradesh, home to a number of software and BPO firms, is considering imposing sales tax on IT exports from the state, on the lines of neighbouring Karnataka and Tamil Nadu.

Minister for Commercial Taxes K. Ramakrishna told reporters Tuesday that the government was considering a proposal in this regard. "The government is holding talks with representatives of IT industry and a decision will be taken after taking them into confidence," he said.

The minister pointed out that states like Karnataka and Tamil Nadu were already collecting tax on IT exports. He said the state government had exempted software exports from sales tax to encourage the industry.

The IT exports from the state, mainly from its capital Hyderabad, during 2006-07 were 185.82 billion ($4.5 billion), registering 48 percent growth.

The state, whose share in the overall IT exports from India has gone up to 14 percent, has set a target of crossing 250 billion during the current fiscal.

Andhra Pradesh stands at fourth position in terms of IT exports after Karnataka, Maharashtra and Tamil Nadu.

It is witnessing a robust growth of the sector with three to four companies setting up shop every week.
Source: IANS
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