The move to extend the income tax benefits enjoyed by units covered by the Software Technology Parks of India Act and those set up in export oriented units by another year -- up to March 31, 2011 will benefit around 6,000 STPI units and 2,486 EoUs. In its budget-related wish list, the commerce ministry had recommended a three-year extension of the scheme, while the industry has been asking for five.
Extending STPI tax benefits beyond 2010 (it was extended by a year in 2009) has been a long-standing demand of the software sector.
The Business Process Industry Association of India, an affiliated association of the Confederation of Indian Industry, in its pre-budget memorandum, has also demanded the extension for tax sops from the Software Technology Parks of India for at least 20 years.
The two agreements were signed during Palestinian President Mahmoud Abbas's state visit to India in May.
At least 38 per cent, or 8.3 million square feet, of its projected commercial space of 21.4 million square feet in its six parks will thus remain indefinitely on hold. The rentals from all these parks were expected to generate revenues for its AIM-listed associate Unitech Corporate Park, which has invested pound 317 million to acquire majority stakes in all the six seed projects in return of leasing rights.
Telecom and IT Minister A Raja today met Prime Minister Manmohan Singh to pitch for the extension of tax sops enjoyed by the IT firms for another three years.
Ishaan Real Estate is an investment company that focuses on property development projects in southern and western India.
The state has proposed the creation of the Pithampur-Dhar-Mhow mega industrial region over at least 200 square km, where an apparel park, a gem & jewellery park, a software technology park, a herbal park and clusters for pharmaceutical firms, textiles, food-processing and auto components will come up.
Will the Gujarat International Finance Tec-City (GIFT) rival the planned financial hub of Mumbai or will GIFT be complimentary to and a feeder to its Mumbai counterpart?
Call this Ahmedabad's reply to Mumbai or Gujarat Chief Minister Narendra Modi's repartee to his Maharashtrian counterpart Vilasrao Deshmukh's promise of a global financial hub.
"If the tax holiday is withdrawn, STPIs will lose the level-playing field vis-a-vis special economic zones. We have recommended that the government either withdraw the tax holiday to SEZs or continue the incentive to IT companies," an official with knowledge of the deliberations told Business Standard. STPIs enjoy direct tax exemption under sections 10A and 10B of the Income-Tax Act, 1961. The benefits are scheduled to expire on March 31, 2009.
Even as several SEZs are struggling to get off the ground, the Mahindras have managed to kick off their second SEZ at Jaipur, after their first one in Chennai.
Even as Finance Minister P Chidambaram said that a final decision on expiry of tax benefits to export-oriented units and Software Technology Parks of India had not been taken yet, government sources indicated that an extension of the concessions was unlikely.
Cinevistaas is planning to build an IT Park, on a 2 acre plot in Kanjurmarg, Mumbai, next to the company's film studios. It is likey to invest Rs 200 cr in this project.
Though the Planning Commission favours imposition of a direct tax on Special Economic Zones (SEZs), it does not agree with the contention that these tax-free industrial enclaves are leading to revenue loss.
The government has given an 'in-principle' approval to the special incentive package prepared by the department of information technology for semiconductor manufacturing and other high-tech industries.
Among the other demands in its pre-Budget Memorandum 2008, the IT industry body has also suggested broadening the eligibility criteria for the large tax payer unit scheme, foreign tax credits, advance pricing agreements to provide upfront tax certainty, and refund of service tax paid on services utilised for export of computer software and BPO services.
The central government is likely to extend the Software Technology Parks of India (STPI) scheme beyond 2009 only to Indian information technology-enabled services/business process outsourcing (ITeS/BPO) firms. A proposal to this effect has been included in the 11th Five-Year Plan document, which will be put up for the approval of the National Development Council, headed by the prime minister, on December 19.
In a big-ticket measure, the direct tax benefits to 100 per cent export-oriented units (EoUs) have been extended till March 31, 2010. These benefits, available under Section 10 B of the Income Tax Act, were to expire on March 31, 2009.
Union Minister for Communications and Information Technology, A Raja on Wednesday assured that the Indian IT sector that the ministry was doing its best to convince the government that the Software Technology Parks of India (STPI) scheme should be extended beyond 2009.
Rolta India plans to set up an information technology park in Kolkata at an investment of Rs 250 crore as part of its expansion plan.
Special economic zones dedicated to the infotech sector may receive a body blow if the tax exemptions provided to Software Technology Parks of India under Section 10(A) and 10(B) of the Income Tax Act are extended beyond March 31, 2009. According to a senior central government official, not more than half of the nearly 100 notified infotech SEZs will survive if the tax sops are extended.
Ajit Chordia, managing director of Khivraj Tech Park, "We are looking at generating 20,000 CERs annually for now, but will generate more carbon credits as we comply with additional norms laid down under the Kyoto Protocol"
Right from day one, the delegates were faced with external odds over which they had little or no control. For instance, would the Software Technology Parks of India scheme be extended beyond 2009? They could only take home the assurance that Minister for Communications and IT Thiru A Raja was on their side.
Information Technology Small and Medium Enterprises of Orissa will approach the state government for the reimbursement of the basic salaries of technical personnel joining the sector for a period of 1-3 years.
According to Nasscom, India must make its R&D significantly more robust to realise the 'Make in India' dream
A number of projects aimed at attracting IT investment nearing completion in cities like Madurai, Coimbatore and Trichy.
Information technology firm Patni Computer Systems on Thursday said its earnings for a financial period could be affected
The Sushil Ansal-promoted Ansal Properties & Infrastructure has been allotted 2,504 acre land adjoining Greater Noida for setting up a Rs 20,000 crore (Rs 200 billion) integrated township
Software industry association Nasscom has sought continuation of software technology parks of India scheme where companies get tax benefits, till 2019.
The appreciation of the rupee, the dividend distribution tax and the hangover of the minimum alternate tax on information technology companies under the Software Technology Parks of India scheme have pulled the prices of IT stocks down.
Hewlett Packard on Thursday announced the launch of its new global delivery centre in Chennai.
Indigo Lever Shared Services, the BPO arm of the Unilever Group of companies, has acquired 26,000 square feet in First Technology Place, a technology park at Whitefield, Bangalore.
The Chandigarh administration has approved the allotment of 30 acres of land to Wipro Technologies Limited in the second phase of the Rajiv Gandhi Chandigarh Technology Park.
At a time when others are cutting on development of commercial property, plans to add 50% more of IT space.
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