Budget to Help IT on Export, HR Fronts: Intelenet
Susir Kumar, MD & CEO has welcomed the extension of the tax holiday for IT industry upto 2010-11. The tax holiday under Sec 10A and 10B was set to expire this year but has been extended by the government till 2010-11.
"This will certainly help the IT and ITES companies as our export-oriented revenues have been affected by the global recession. However, a longer-term extension by 2-3 years would have been more beneficial as it enables companies to plan their investments," said Kumar.
"From an economic perspective, I am glad the government has endeavoured to boost spending. Increased domestic spending will boost the economy and also have an impact on the domestic BPO industry as it is dependent on domestic consumption of goods and services."
Kumar also welcomed the government move to abolish the Fringe Benefit Tax (FBT) "which will help release more funds to corporates who wish to introduce employee benefit schemes."
Ramachandra Panickar, CFO, Intelenet Global Services said, "The abolition of Fringe Benefit Tax (FBT) on certain fringe benefits provided to employees is an extremely positive development. Intelenet Global Services is a people oriented company consisting of 27,000 employees - we implement several employee welfare schemes, which are included in the tax net. Abolition of FBT will certainly be a relief for us."
"On the downside, we are disappointed that the Minimum Alternate Tax (MAT) has been increased from 10% to 15%. However the extension of the carry forward period from 7 years to 10 years is positive."
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