7 Retroactive Pre-Budget Expectations From The Tech Sector
Expansive nature of Royalty definition
Clarifications are in order; the idea of Royalty definition and amendments succeeding in the process needs to be clarified. Likewise the impact it would have on taxation of software and services and does it also impact on the treaties made by India with other countries.
Tax implications on Cloud Computing
The cloud technology right now is gaining in companies from India and other MNC’s as well, so the tax implications as to the service need to be stated. The business models like Software as a Service (SaaS), Platform as a Service (PaaS), and Infrastructure as a Service (IaaS) are being adopted by companies.
So it would help to have a tax list of what the new budget will impress as to the service charge, withholding tax, and other tax and regulatory obligations and risks that could arise.
Service tax refunds
The service tax for the companies that are providing export services should be replaced with a drawback line in scheme as it is with goods exporters. The STP’s are in need of an exemption from the service tax as done for SEZ, or atleast it should be exempted partially.
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