We’re Awaiting a Dream Budget

Tomorrow, as you read this column with your regular cuppa, your eyes will also be anxiously surfing your favorite TV channel (UTV in my case).

The reason – Pranab Mukherjee our new Finance Minister is going to read the budget. We will discuss the repercussions of the budget during the week through stories my correspondents will do for Channel Times, and lastly through my weekly communique with the community.

Meanwhile, let us recap our expectations from the FM.

• ” There’s confusion on the taxation in the software industry. The packaged software attracts excise duty/CVD; however, no excise duty/CVD is charged on customized software on media or on license of customized software or even on license of packaged software. When software is downloaded from the Internet, it is subjected to service tax. The state governments also levy a VAT on software. Due to various modes of delivery of software, licenses and various kinds of software, there is no clarity on the exact taxes to be levied. There needs to be clarity whether software would attract excise duty or service tax, as the same item cannot attract both excise duty/CVD as well as service tax.
• ” Availability of latest technology and products at affordable prices
• ” MAIT wants a long term and holistic fiscal policy
• ” BCDWA said considering the revenue fetched by the IT sector the government should be more considerate
• ” PCAIT echoes sentiments on tax simplification and compliance
• ” Vendors such as MicroWorld expect a growth-oriented budget to facilitate sustainable growth
• ” Gigabyte wants the government to take steps to boost demand, and more investment on infrastructure
• ” FTK wants that the government should promote computer education
• ” Four Soft wants that tax exemption should be extended
• ” Among partners, Neoteric wants the government to do away with multiple taxation
• ” iValue wants the government to intervene cost of funds, liquidity
• ” Inspan is of the view that negative variation in duty impacts the overall market

While Channel Times has bulleted partners views in a bird’s eye format, I am hoping that the FM has given due thoughts to this industry, and will have something for the IT and the telecom channels to cheer about.

And so till the next weekend…