January 7, 2016 4:40 PM

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Budget 2016: IT sector seeks relief from double tax, retrospective orders

Indian IT sector has sought relief from double taxation on software products, and provide cushion to the industry in view of protectionist measures being taken in the global market. In a Pre-budget meet with the Finance Minister Arun Jaitley today in New Delhi IT players also flagged the concerns with regard to double taxation on software products.Talking to reporters after the meeting Nasscom President Rentala Chandrashekhar said some measure need to be taken to address the issue till the time Goods and Services come into force. Government levies service tax on a software of foreign source downloaded from internet while both VAT and service tax are levied on software purchased domestically. IT sector has asked the government to provide level playing field between the two.He also said the larger issue for Indian IT sector is to remain competitive in view of the protectionist measures being taken in some large markets. The IT players also urged the Finance Minister to provide them staggered payment option to employees which companies are required to make under a notification issued by Labour Ministry on bonus payment, effective since April 2014. The meeting was attended by the representatives from leading IT companies including Tata Consultancy Services, Infosys, Wipro and HCL.

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