Union Budget 2010 Impact on IT sector

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Union Budget 2010 has introduced some excellent proposals for banking, pharma, construction, education and hospitality industries but has failed to produce any such impact on the IT sector of India.

Union Budget 2010 Impact on IT sector

Since the Tax Rebate has not been mentioned in the budget declaration and is expected to end on March 2011, the BPO players like Wipro, Infosys Technologies, Tata Consultancy Services, etc are estimated to incur losses from the budget announcements in future years. Another expectation which the FM failed to meet was the extension of STPI (Software technology Park of India) in IT sector, to which he counter argued by notifying the industry's growth in the last fiscal. Keeping this in consideration the government has hiked its factory gate tariffs. However, the allowance of Rs 1900 crore by the government to IT sector for UID (Unique Identity) project will be of great benefit and the declaration of the improvisation of national employment exchanges was welcomed by the industry.

To attain the GST rollout by April 2011, the FM has called for the revamping of in-house work methods by both the central and state indirect tax governments. He suggested that the renovation should be based on the extensive utilization of Information Technology and also proposed the initiation of project ACES - Automation of Central Excise & Service throughout the nation in an attempt to impart precision in tax government and recovery in the release of taxpayer facilities.

On the same note a project named Mission Mode has been initiated for mechanization of Commercial Taxes in States with an allowance of ` 1133 crore out of which ` 800 crore is allocated for Central government. The FM suggested the simplification of the method of repayment of accrued credit to service exporters by implementing required alterations in the characterization of service exports and methods.

Last updated on : 15-05-2011

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