Money > Budget > Budget News & Analysis JANUARY 21, 2002 I 11:53 IST rediff.com
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CDC asks for 100% tax exemption on consultancy exports

Consultancy Development Centre has demanded 100 per cent tax exemption on income from project consultancy exports and withdrawal of five per cent service tax on professional consultancies.

"Income tax exemption from project consultancy exports and withdrawal of services taxes tops our wishlist for the forthcoming Budget," CDC Chairman Uddesh Kohli said.

The project consultancy market size has the potential to touch $5 billion (Rs 250 billion) by 10th Plan, provided adequate fiscal incentives were extended, he said.

"For this to happen, incentives like 100 per cent tax exemption should be extended to export of managerial technical services/projects in the forthcoming Budget," he said.

The existing Rs 50 billion project consultancy market, excluding projects relating to computer software, has the potential of doubling its size within a year time.

However, project consultancy in the form of technical, financial, managerial and HRD needs to be harnessed both in the domestic and international markets to realise its full potential.

India has a great advantage due to availability of low priced skilled manpower capable of offering worldclass consultancy, Kohli said adding that this aspect needs to be given due consideration in the forthcoming Budget.

Exports of project consultancy currently valued at about Rs 10 billion and has a potential to touch as high as Rs 50 billion within five years.

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