IT industry seeks MAT reduction to 5% in Union Budget
The IT and IT-enabled services industry here has sought the reduction in minimum alternate tax (MAT) to 5 per cent in the Budget 2013-14 for all IT companies operating in SEZs.
The Finance Minister is slated to announce on Thursday the budget proposals for the next fiscal.
"With the introduction of MAT for SEZ units, it has become very difficult for the IT companies in India (specifically for SME) sector to operate competitively and in a profitable manner," ITsAP (the IT and ITES Industry Association of AP) said in a statement.
"This has reduced the employment generation rate and further FDI investment in India. Hence the MAT should be rolled back or decreased to 5 per cent," it said.
Under the present IT laws, business losses can be forwarded only for a minimum of 10 years and the same should be allowed to carry forward without any limitation.
In the current economic downturn globally, recouping the losses in 10 years may not be possible and many countries are allowing losses without any limitation to period, the IT body requested.
ITsAP also requested the FM to give an opportunity to set -off the taxes payable against refund due to the assessee which will increase the liquidity and save time in following up for the refunds.
On Service Tax issues, the ITsAP said all export companies in IT/ITES are entitled for refund paid on the input services.
"However, the same is not a reality as of today barring a very few cases.
A series of meetings
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