Saturday, February 21, 2015

Pre-Budget expectation 2015-16 by Mr. P.G Lakshminarayan, Vice President-Finance, eScan

Being the first full Budget of the new NDA Government, the Indian IT industry expects a progressive and balanced budget. IT Industry genuinely needs some reduction in corporate tax, Dividend Distribution tax and Minimum Alternate Tax Rates which imposes tremendous liquidity strains leaving inadequate funds for generation of internal resources or reinvesting for expansion, modernization, technology upgradation and ‘R&D’. Hope this budget comes out with clear timelines as to the GST launch next year, without throwing up any bad surprises and with a completely new version of the tax legislation, the Direct Tax Code (DTC) which has been hanging fire for several years now. Having reached a milestone stage of more than $ 86 million in exports, the IT industry now seeks availability of capital at cheaper costs, by bringing IT export finance under the priority lending segment. Also, a greater clarity current market realities.