Ashok Wadhwa, MD and CEO, Ambit Holdings

On tax- 10A - 10B Given that there has been a disruption in a sense to almost all export oriented businesses, this last one year has being a serious drain because of the global economic situation. One was expecting some support and he has given the support by the one year extension. Had the Indian economy not moved up as rapidly as it has, had we not shown as many positive signs of development as we have, it may have been a longer period. However, I think, the general belief is that there has been a disruption for one year and let’s make it up by extending 10A-10B by one year. I have no doubts that if this growth that we have seen disappoints us and we go back to a relatively low growth situation globally, I am sure 10A - 10B will get extended further and for present one year is what was expected and I am happy by that he has done it by a year.

On ESOPs: They will be taxed as perquisites in the hand of employees versus FBT. However, I guess, a part of the tax will now get deferred to the point of times when you realize the gain, so it will get taxed on execution. That is one of the big concerns that FBT had, it was actually taxing you at a point when you exercised it versus at the point of time you realized the gain. When you get cash you make money. I don’t think anybody grudges having to pay tax, its when you don’t have cash and you still have to pay tax that people were really concerned about.