The National Association of Software and Services
Companies (NASSCOM), while welcoming the exemption in
excise duty on PCs, has expressed disappointment that
issues related to taxation of the BPO industry have been
left untouched by the finance minister.
are holding back more rapid growth and larger investment
and employment in this industry. Also, a number of procedural
issues continue to cloud the policy outlook in this industry,''''
the NASSCOM president, Kiran Karnik, said.
Mahalingam, Tata Consultancy Services, said, "It
was a very good thing that no benefits were taken away
from the software industry. So there is continuity here.''''
He added that he was looking for some announcements on
higher education but found them missing in the Budget
announcements. "Industries such as IT in India have
made a global impact only because of higher education.''''
Ramalinga Raju, chairman, Satyam Computer Services, said,
"We are quite pleased with the Budget focus on infrastructure
development in the areas of power, civil aviation, local
mass transportation and roads."
providing IT training, optical fibre cables and Internet
access seem to be affected, either positively or negatively,
due to Budget announcements.
two per cent cess meant to boost education in the country
could spell opportunities for IT training companies.
Khera, CEO, Aptech, says, "The cess will create a
fund that can then be ploughed into education. To us,
this is good since we are looking at government projects."
Ramaraj, managing director and CEO, Sify, said, "The
increase in service tax from eight per cent to 10 per
cent, especially for the cyber cafe industry where even
eight per cent is counterproductive, is a retrograde step.
Doing this, but not doing enough to bring down the prices
of access devices like PCs will result in a decrease in
the number of Internet users rather than encourage them."
Chhabria, managing director, Finolex Cables, points out
that bringing down the duty for fibre optic cables to
0.6 per cent might not send the right signals across.
"For the manufacture of fibre optic, other components
such as polythene, nylon jelly etc. also go in but their
duty structure continues at 20 per cent."