iGate CFO Wants Ambiguity of ST Exemptions Removed

by Manu Sharma    Jun 29, 2009

iGate, the global IT company that provides IT services in enterprise solutions, business intelligence, data warehousing and application development is looking forward for the removal of ambiguity in terms of refunds/exemptions of service tax (ST).

Talking to CXOtoday, on pre-budget expectations, Sujit Sircar, CFO, iGATE Corporation said, The ambiguity for the export in IT industry has led to huge unsettled claims and shrinking the differences in incentives between SEZ and STPI units.

In terms of top priorities, Sircar said the government must revive the growth momentum of the economy, which can happen through increased public consumption and investment, and to bridge the fiscal deficit which has reached alarming levels if both Central and state deficits are added together.

Increasing investments in infrastructure, systematic disinvestment of PSUs, easing norms on FDI and ECBs and providing/extending incentive to the transformational industries will put the economy back on track, said Sircar.  

Enhanced domestic consumption as a result of increased disposable income will stimulate the economy, he said.  I hope that the budget, through tax incentives for the common man, will address this.  

Hopefully, the finance minister will take a re-look at FBT provision and introduce tax reforms such as merging VAT and service tax into a single tax and abolishing MAT for STPI units enjoying tax benefits.

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