Wednesday, June 03, 2009

RAJA PROMISES EXTENSION OF TAX SOPS

New Delhi
The Times of India

New Telecom and IT Minister Andimuthu Raja said he will "fight for" the extension of tax sops to IT and ITeS firms for another two years in the coming budget.

"I will fight for the extension of STPI scheme beyond March 2010. The scheme should be extended for at least another two years," Raja, who became the Telecom and IT Minister for the second time, said.

Raja said he would take up the matter with Prime Minister Manmohan Singh and also with Finance Minister Pranab Mukherjee for continuation of the tax sops.

The concessions under the Software Technology Parks of India (STPI) scheme has already been extended by a year. The STPI scheme under which IT and ITeS firms enjoy tax benefits is scheduled to get over by March 2010.

Besides, Raja said he will further promote the semi-conductor policy which is expected to bring more investment into the country. "So far the country has seen inflows of Rs 1.57 lakh crore under the semi-conductor policy," he added. The government has given in-principle approval to 12 companies.

Under the semi-conductor policy the government offers capital subsidy in the form of tax breaks to set up chip manufacturing units in India.

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