‘IT Industry Welcomes Mr Jaitley’s Union Budget’

‘IT Industry Welcomes Mr Jaitley’s Union Budget’
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Welcoming the Union Budget 2015 many Industry experts believe that this policy framework document has defined a clear roadmap on many aspects addressing the need for stability in policy framework.  Mr S. Rajendran, CMO, Acer India, says, “Some of the bold announcements made by the Finance Minister and have a direct bearing on our sector – infrastructure spending, direct transfer to beneficiaries, committed date of April 01, 2016 for Goods & Service Tax (GST) and enhanced social security thrust will convey a reassuring message to potential overseas investors. However, we’ll need to review the provisions before any predictions could be made on the impact they will have on the sector. IT industry expected more from the budget. While some progress has been made towards addressing the inverted duty structure and dual Central Value Added Tax (CENVAT) structure for encouraging local assembly/manufacture of tablets and smartphones, keeping out PCs with the attendant increase in Excise duty/CENVAT from 12.36% to 12.5% in addition to the jump to 14% in service tax bodes ill for increasing demand for this category which is already suffering from woefully low penetration rates. We are eagerly hoping that with the clear direction spelt out, there would be more reform oriented policies and measures as the year progresses so the momentum for an accelerated GDP growth continues.”

 

Mr Khwaja Saifuddin, Senior Sales Director – South Asia, Middle East and Africa, Western Digital, highlighted his perspective and said, “The budget carries forward the government’s vision of Digital India and Make in India, and had some encouraging announcements especially regarding the  development of infrastructure, employment generation and training of the youth. The support that is likely to be meted out to start-ups and SME’s through MUDRA Bank is expected to help the existing 5.77 crore small business units in the country expand their operations besides assisting new start-ups. The proposed reduction in the rate of  income tax on royalty and fees for technical services from 25% to 10% will empower small businesses and start-ups digitally and make them important contributors to the Digital India initiative. Similarly, steps taken to enhance the employability of the youth through National Skills Mission and Deen Dayal Upadhyay Gramin Kaushal Yojana will result in the industry having an educated and trained workforce, a must for the Make in India initiative to progress. As the Financial Minister mentioned, this would turn ‘job seekers’ into ‘job creators’. Besides this, the proposal to reduce the  basic rate of Corporate Tax from 30% to 25% over the next four years is a welcome move. Not only will this make the business environment in the country more lucrative, it will also lead to higher investments, job creation and growth.”

 

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