IT industry seeks MAT reduction to 5% in Union Budget
with Nasscom and other agencies with the Central Excise and Service Tax officers is not improving the refund process. Further, many small companies are not applying for the refund considering the hassles being created in the chain of refund claim," the industry body said.
BVR Mohan Reddy, Founder and Chairman of Infotech Enterprises Ltd, said for the software industry, withdrawing the MAT on SEZs, initiating a new SEZ policy to further improve IT exports, implementing a policy for R&D in software industry and promoting Tier II/III towns for inclusive growth will help accelerate growth in the software industry (IT Industry).
As SME sector is the backbone for the industry and employs 59 million people, it can be a growth driver for future. And hence a special package for the SME sector will
help sustainable growth, Reddy said.
The tax on SEZ was introduced in the Union Budget 2011-12. The SEZ players said the benefits offered in the SEZ Act 2005, provided a wide range of incentives to investors in SEZs including exemption from MAT and 100 per cent income
tax exemption on export income.
According to a recent survey by research firm Ipsos, companies attributed exemption from tax as the key reason for investment in SEZs, which stood nullified with the imposition of the MAT.
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