7 Retroactive Pre-Budget Expectations From The Tech Sector
Withdrawal of MAT on SEZ units:
The government is expected to liberate the companies from MAT (Minimum Allowance Tax) which are in the process of instilling their firms in SEZ. So to boost other companies to invest in these zones, the government needs to remove MAT on SEZ.
From reports, the commerce ministry has already recommended this strongly to the commission.
Reduce Transfer Pricing Litigation for IT/ITeS Players
These two changes needs to be made:
1) Reduce the safe harbor markup rate, because as of now it is too high at 20-25 percent so that the taxpayer can apply for it and can firmly believe.
2) Application of range and use of multiple year data, the rules that were announced in 2014 budget made to be order with the best practices globally.
Indirect Tax Law Simplification for E-commerce Players
There is a need of clarification on the amount of tax the e-commerce companyies needs to pay under the CST law for their taxation. The ongoing debate is about as to what amount of VAT/CST laws apply to e-commerce players and other companies which are in the slump and trying to get out.
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