Hyderabad, Aug. 4: The government is mulling uniform tax sops for IT and IT enabled services companies, a top government official said.
“There is a mismatch between tax concessions given to IT companies under various schemes such as software technology parks and special economic zones. The government wants greater uniformity in tax concessions for the IT sector and the Prime Minister and the Finance Minister were looking into the issue,” the Union IT secretary, Mr R. Chandrashekhar, told on Wednesday on the sidelines of eIndia 2010, a three-day information and communication technology event being held here.
The secretary was respo-nding to the concerns raised by IT firms on phasing out of tax sops in the Direct Tax Code.
Despite the challenges being faced by IT companies such as protectionism in Western countries and competition from China and Southeast Asia, the IT official is optimistic about the growth of the Indian IT and ITeS sector. Around 80 per cent of the Indian IT industry’s revenue comes from exports.
Currently, Indian IT companies hold a 51 per cent share in the global market. Its turnover is expected to touch $225 billion by 2020 from $63 billion in fiscal 2010.