Naveen Aggarwal,
Partner-Tax (IT/ITes),
KPMG in India
“The budget seems directionally very positive, even though it may not have addressed the key expectations for the IT-ITES industry. On the policy front, extension of advance ruling mechanism for resident tax payers and roll-back of APA provisions will be embraced by the industry to provide stability and certainty in an otherwise litigious tax environment.  Other procedural matters on transfer pricing related to use of multiple-year data and arm’s length range have been long standing demands of the industry and clarity on these matters, will go a long way to reduce the ongoing transfer pricing litigation.
While the Finance Minister made specific reference to the need to revive investments in SEZs and provided for some procedural simplification, no direct tax sops were provided in terms on relief from DDT and MAT.  Broadband connectivity at village level, integrated e-based payment gateway for Government services will create opportunities for the sector to participate in infrastructure building.”
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