Budget 2015 expected to be favorable

New government and its introduction to rising opportunities leading to expectations of a favorable budget

The IT sector has been going through a difficult phase with several emerging challenges like VAT, tax structure, etc. The budget is keenly awaited by partners when IT economy needs a strong fillip to get back on the high-growth path.

Although the new government is about to present its budget, the expectations from IT sector in specific has reached great proportions. They revolve around measures to promote growth and global competitiveness of the IT sector, apart from improving business environment in India for investments and operations.

Mahinder Aggrawal of Broadway computers said, “There should be control in prices of diesel and oil so that tax on shifting computing electronics can be controlled. We as traders are expecting that new government will introduce budget in favor of traders for the continuation of smooth working ethics.”

Mahinder AggarwalIT sector is badly seeking for something good to happen with introduction of budget 2015. Rather than imposing more taxes, government should bring some tools to save IT. Continuous drop down in business due to various issues IT partners are forced to shut their business and fight for basic earnings. It is expected that new favorable reforms can bring peace.

Pointing towards the same P K Sharma of Comnet vision expressed, “Some privileges should be granted to IT sector like implementation and development of IT Zones. The sector hopes the government maintains the service tax rate at current levels.”

P K SharmaIT segment is backbone of any industry we name and plays a very significant role in structuring various verticals while providing techno solutions and services.

According to Shiv Shankar of Stek Systems, “IT should be given some percentage of positive preference in upcoming budget. Also, if GST practiced properly then IT segment can seek some sort of improvements. He also added,” Some guidelines and polices should be introduced for online to maintain business values.”

The sector is also looking at resolving their major indirect tax issue, which is obtaining service tax refunds. Companies are reeling under the pressure of failure in obtaining refunds, due to various reasons.

Arun Bhargava of Techno Serva keenly said,” Expectations has reached higher level and like always we are trying to figure out that upcoming budget should be bringing parity by resolving indirect tax issue, service tax issues at the earliest by amending the law or clarifying its intent. Also looking forward that IT business import duty will remain same.”

Arun BhargavaWhile the new government has been introducing rising opportunities which is somehow trying in bringing relief, the sector is hoping for an upfront exemption from service tax, in lines with the same treatment available for Special economic zones. Options like rebate can also put forth before the government, which could bring similar relief to the sector.