Small and medium-sized enterprises (SMEs) as able-bodied as advice technology (IT) startups amid in thecomputer application technology parks can anon apprehend the government to balance the assets tax (I-T) paid on their earnings.
“There is a angle beneath application by the government to balance the I-T paid on earning by these companies,” Sunil K Agrawal, administrator of Computer application Technology Parks of India’s (STPI) Maharashtra and Goa region, told TOI on the sidelines of an accident actuality on Tuesday.
Agrawal said, “The account will appear with assertive riders and will be applicative to onlycomputer application SMEs and startup companies. The government is alive on the nitty abrasive of defining the SMEs meant for such benefit.”
The STPI is an free society, which was set up in 1991 by the admiral of communications and IT to facilitate and advance IT exports as able-bodied as professionalcomputer application services.
Agrawal said, “The agreement has been proposed to be on the curve of the axial sales tax (CST) arrangement for IT companies.” Computer application firms are answerable CST at the point of sale. Later, ascomputer application technology esplanade units, the firms book a acquittance claim, which is reimbursed through the axial treasury.
According to Abhijit Atre, secretary, Computer application Exporters’ Association of Pune (SEAP), “The proposed I-T account augurs able-bodied for the 150-odd SMEs and IT startups in Pune, which were hit adamantine afterwards the I-T absolution beneath the STPI arrangement concluded in March this year.”
The STPI arrangement had provided, amid added things, a 10-year I-T absolution for companies amid in thecomputer application technology parks. The I-T absolution was continued by a year in March 2010, but no added addendum was accepted this year.
The SEAP, like best othercomputer application aggregation associations, had confused a representation above-mentioned to the Union Budget 2011, advancement the axial government to abide with its IT action in abounding ambit including the I-T exemptions. “We confused the representation through the STPI, Pune, but there was no response,” Atre said.
He added, “The government has justified the end to I-T allowances beneath the STPI arrangement on the area that the aforementioned was in force for a abiding aeon of 11 years and that the IT industry in India had back appear a continued way to complete into a advancing industry.”
However, Atre acicular out, “The government’s absolution is accurate to the admeasurement of bigger and accustomed IT players, who aggregate almost 25 per cent of the IT sector. Baby and medium-sized enterprises still boss the IT space.”
Factors like bread-and-butter arrest abnormally in the US and ever-increasing centralized costs accept impacted the margins of baby and average IT players, he said. Citing a contempo affair amid the SEAP associates and chief STPI admiral including Agrawal, Atre said that the government is because SMEs with beneath than Rs 200 crore anniversary about-face for the proposed I-T agreement benefit.