Nasscom seeks tax sops

Nasscom has handed over the IT industry's budget wishlist to the FM. The pre-budget memorandum has identified five critical areas, which the FM needs to look at while framing the taxes for the sector next year.

First, it wants the government to continue the STPI scheme beyond 2009 and tax incentives under section 10A/10B for next 10 years. It suggests the STP tax holiday removal for IT sector (not BPO) to be linked to the signing of the totalisation agreement with the US government. Even the Kelkar Committee had recommended this. It feels, its a substantial cost for the industry and puts Indian IT companies at a competitive disadvantage when compared to their global peers.

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