NEW DELHI: Centre's decision to constitute panel to review tax related issues will prove beneficial for the IT sector, said National Association of Software and Services Companies (NASSCOM). Prime Minister Dr Manmohan Singh has established a committee to take a close look at the taxation matters of the IT sector along with the research and development (R&D) to bring clarity.
NASSCOM President Som Mittal said, “We believe this announcement would allay concerns of industry, global corporations and investors. I would like to thank the PM for his proactive support in creating this committee that will help to address current issues being faced by the sector as well as focus on implementing the Safe Harbour provision.”
Moreover, the panel has been formed to review issues such as approach to taxation of Development Centres, tax treatment of 'onsite services' of local software firms.
Claiming that India is a prominent destination for global sourcing of technology and BPO, Mittal said on the requirement for consistent policy regime that is significant for industry to grow and also innovate.
The new four-member committee will be holding consultations with the stakeholders and also related government departments to decide the approach. The panel will be finalising the approach to taxation of Development Centres and the IT Sector by August 31 this year.