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01-18-2013, 01:26 AM #1
Software cos will continue to get tax benefits: CBDTSeeking to remove apprehensions of the software industry, Finance Ministry, on Thursday, clarified that domestic and overseas software developers would continue to get tax benefits under the Income Tax Act.
The clarifications, which come ahead of Finance Minister P. Chidambaramís visit to Hong Kong and Singapore to attract investments, were issued by the Central Board of Direct Taxes (CBDT) in response to the apprehensions expressed by the industry with regard to taxation of profits from software exports.
CBDT Chairperson Poonam Kishore Saxena told reporters that the software industry would continue to get tax benefits for onsite development of software, deployment of manpower abroad and transfer of SEZ from one unit to another, among others.
ďThese clarifications will address the disputes or concerns of the software industry arising out of interpretation of existing provisions of the tax structure in the IT Act (with respect to Sections 10A, 10AA and 10B),Ē she said.
The domestic software industry has been getting tax incentives under the provisions of Sections 10A, 10AA and 10B of the Income Tax Act.
The clarifications, Ms. Saxena said, were based on the recommendations of the Rangachary Committee, which was appointed by Prime Minister Manmohan Singh in July last to address the concerns of the software industry....being a human...