IT industry is looking for the upcoming annual budget to bring more clarity in taxation policies and overall government’s vision of IT industry as the one engaging for the country’s growth.
Before every budget session, first question in mind comes that does software should be treated as goods or service and thus how it should be taxed? Every year after March we don’t get any sign of clarity, rather some more taxes & compliance.
After certain cases that software industry, particularly its security segment, had faced the uncertainty among industry players and have become more complicated. The process of the industry is becoming more consistent and transparent and but have been interrupted again though for both local and international companies represented in India the questions of rules and policies’ transparency is the vital one.
Apart from software-related issues we believe that government will come forward with budget aiming to make Indian more digitized and advanced. Reducing taxes on tablets, smart phones would help it a lot, as well as abolishing the inverted duty structure on computer components that could promote hardware manufacturing in the country and make locally manufactured goods cheaper for Indian consumers.
