NASSCOM has presented its annual Pre-Budget and Policy thrust recommendations to the Indian Government, an effort to present the IT-BPM industry‘s wish list for the year ahead.
NASSCOM has presented its annual Pre-Budget and Policy thrust recommendations to the Indian Government, an effort to present the IT-BPM industry’s wish list for the year ahead.
In this list, NASSCOM has focused on issues related to enabling entrepreneurship, enhancing the global competitiveness of the IT-BPM industry, helping India emerge as an innovation hub and meeting growth and development goals.
As a part of its suggestions for enabling entrepreneurship, NASSCOM has stated that:
- The compliance burden be eased through the removal of unfair levies
- Royalty on internet downloads, which will act as a barrier to usage, be removed retrospectively
- There is relief from expense disallowance for non-deduction of TDS, and other measures related to uplifting of the TDS burden
- Procedural simplifications, such as an automated facility to check PAN, etc., be introduced
In order to improve the competitiveness of the IT-BPM sector, NASSCOM has advised the government to make available promised benefits by streamlining administration. It has stated that:
- Income tax paid towards local tax obligations overseas be offset
- R&D services be made eligible for SEZ benefits
- Deduction for training be extended
- Transfer pricing guidelines be rationalised and their domestic threshold enhanced
- The SEZ policy be revamped, with no minimum, contiguous land requirement
To help India emerge as an innovation hub, NASSCOM has suggested that:
- There be a re-classification of R&D and testing services as exports
- The IT sector be allowed to avail existing R&D promotion schemes and that the benefit of the current DSIR scheme be expanded to include computer software
- A tailored incentive model be developed for R&D in the IT-BPM sector, extending it to products and services
Finally, NASSCOM has recommended that the government meet development goals by introducing policies and allocations that increase ICT-led interventions in healthcare, education and governance.
It has suggested that India be built into a cyber secure nation through budget allocations and training of cyber security professionals and that Tier II and III locations be promoted for inclusive growth.
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