In the backdrop of buoyant growth projections, definite
investor outlook and the assurance to have a non-adversarial tax regime, let's
judge the Budget 2015 proposals impacting the IT & BPO sector. The Finance
Minister displayed in his speech that India has emerged as a well-regarded and
world-class IT industry that has contributed significantly to its financial
growth, exports and employment generation.
While the IT& BPO industry had several particular
expectations from this Budget, the FM's tax proposals want to be evaluated
keeping in mind the goal of gradual transition from an exemption-based to an
internationally competitive tax regime with certainty and balance.
The proposals around delay of GAAR by 2 years with potential application, increase in household transfer pricing threshold from Rs. 5 Crore
to Rs. 20 crores and gradual decline in headline corporate tax rate over 4
years from 30 % to 25 %, with phase-out of industry specific incentives and amendments to the indirect
change of possession laws to provide clarity are steps in the right direction.
No comments:
Post a Comment