STPI Scheme Extended for one year
STPI Scheme Extended for one year
Deduction in respect of export profits is available under sections 10A and 10B of the Income-tax Act. The deduction under these sections would not be available beyond the financial year 2009-2010. In order to tide over the slowdown in exports, I propose to extend the sun-set clauses for these tax holidays by one more year i.e. for the financial year 2010-11.
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I could not understand where as the government say that they are going to support export company and advantage is extended only for one year. They think that recession will be over next year or they just want the IT companies to beg each year for extension
Nasscom President Som Mittal welcomed the extension and said that though the industry had asked for a five-year break, for short term, the one-year tax holiday is well-timed to tide over the slowdown
Last year budget included the STPI Companies under MAT. This year Mat is raised from 10 % to 15 % which is going to affect all corporate units registered with software technology park of India. So Extension by one year along with MAT increase will have less benefit for Indian IT Companies