IT sector disappointed over budget

BANGALORE: The Information Technology sector in India expressed disappointment over Union Finance Minister Pranab Mukherjee not heeding to the industry request of exempting SEZ income from MAT. Reacting to the budget proposals for 2012-13, TCS CEO and MD N Chandrasekharan said that ‘given the economic and political circumstances, the FM has presented a pragmatic budget with doses of good intentions for long-term growth but lacked short term punch to get growth going’. He lamented saying the government was silent on the industry’s demand for exempting SEZ income from MAT. He said the focus on R&D is good as the weighted deduction of 200 per cent for R&D expenditure in an in-house facility has been extended beyond March 31, 2012 for a further period of fi ve years. He said there is no date or schedule for the direct Tax Codeim presentation and GST but the Government is committed to bring these in near future. For the IT industry, the APA will be useful to ease transfer pricing litigation.’ Juniper Networks Vice President (India Operations) SridharSarathy highlighting the proposal to extend the weighted deduction of 200 per cent for R&D expenditure in an in-house facility for fi ve more years said the Union Budget FY 2012-13 is a positive promotion of the long-term importance of science, technology, research and innovation in India. He said ‘this will be of benefi t to organisations conducting research and development in India and will help to encourage them to deepen their connections with the ecosystem and the talent available in the country.’ Sarathy said the Finance Minister’s recognition that ‘the driving force of a modern nation is research and the creation of new knowledge’ is to be applauded. CISCO India President and Country Manager welcomed the gossoon enabling ‘faster, sustainable and more inclusive growth,’ through the twelfth fi ve year plan. He said scaling up of the Aadhar Project as well as enabling it to support PDS will greatly benefi t the common man. Leveraging technology to transfer subsidies directly to benefi ciaries is defi nitely a positive step. On the industry front, setting up Rs 5,000 crore venture funds for MSME sector is a welcome move, given that SMEs employ a sizeable population. We are also hoping that the GST roll out is on track for August this year. He said the budget addressed some key areas like education, healthcare and infrastructure which are critical to national growth and development.