Budget'09 is Beneficial for the IT Industry

by CXOtoday Staff    Jul 06, 2009

Girish Trivedi, deputy director (ICT Practice) of Frost & Sullivan, South Asia & Middle East believes that the budget 2009 focuses on a few initiatives which will be beneficial to the ICT industry.

The positives, according to Trivedi, are the investment in the unique ID project, infrastructure development, and reduction on duty cuts on LCD. More IITs and NITs will lead to enhancing better skill sets. However, he said the increase in MAT might create burden for some. "We still need to assess if increase in consultancy service tax rate includes IT consulting services as well, if yes, it might be an additional burden on most of the large IT companies who have started taking lot of consulting work along with their IT projects," he said.

According to him, the extension of the tax holiday under the STP scheme should have been done for a longer period. The announcement on tax reforms and making income tax filing easier over a period of three to four years is also a good sign for the IT sector according to him.