No immediate I-T relief for Wipro, TCS

No immediate I-T relief for Wipro, TCS

By SiliconIndia   |   Wednesday, 21 April 2004, 07:00 Hrs
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NEW DELHI: Its official now. Wipro and a host of other IT companies like TCS, which were slapped with income tax demands recently will have to wait for the appellate authorities’ verdict on the issue.

The finance ministry on Tuesday ruled out any clarification on the interpretation of law relating to Section 10 A of the Income Tax Act which deals with tax holiday for undertakings up in software technology parks and commencing production after April 1, 1994.

Nasscom recently sought a clarification from the CBDT on the legal intent of this provision.

"We are not holding back a clarification", revenue secretary Vineeta Rai said at a media briefing.

The CBDT Chairman P L Singh made it clear that the government had no intention to change the enabling provisions –– Section 10 A and 10 B of the Income Tax Act The matter is sub-judice now as companies like Wipro have already filed an appeal with the CIT (appeals) contesting the claim.

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