The government has developed a comprehensive budget that focuses on stabilizing economic activity and investment but needs more clarity in areas such as the long-term tax framework for working long-distance workers, IT agency Nasscom said on Monday.
The industrial organization noted that the IT / ITeS (Information Technology-enabled Services) industry was a key driver in growth and jobs by 2020 and there is an opportunity to accelerate it further.
“In the IT sector, one of the biggest challenges we face is the development of future business models, and hybrid performance will happen. We expect the government to provide clarity in providing a straightforward tax and indirect tax framework for the industry to adopt WFH / remote long-term,” Nasscom said in a statement.
He added that WFH (Work-From-Home) needs to be enabled in SEZs (Special Economic Zones) for a long time.
“As this requires the delivery of tax-free goods such as laptops etc without SEZs, the finance department must provide the required information under Customs and GST,” it said.
Nasscom commended the government’s sharp focus on stabilizing economic activity and investment in key sectors such as health care, fintech, education, infrastructure, R&D development, innovation and innovation.
“The budget has introduced an easy way to streamline business processes from taxation to investment to improve the country’s economic activities and ensure job creation,” he noted.
Nasscom said the government had introduced a 15% tax on attracting new manufacturing jobs.
“We have proposed that this 15% tax be levied on IT-ITeS companies in SEZs under certain conditions of employment and investment. We believe this can boost economic development in big cities, boost jobs and increase our exports,” the company said. .
The Internet and the Mobile Association of India (IAMAI) have also welcomed the steps taken by the government to grow the digital industry and support the country’s ecosystem.
“Focusing on digital payments, as well as infrastructure development is a step towards realizing the $ 5 billion economy and will open up new service delivery opportunities in the country,” said IAMAI President Subho Ray.
UCP Gurnani, MD and Chief Executive Officer of Tech Mahindra, said the Budget was a step towards Atmanirbharta.
“FM has provided many opportunities to grow and sustain the gig economy, digital payments and research and development taking place in the country. Focusing on innovation and R&D as a key pillar is an important step in increasing India’s export revenue.”
With funding for infrastructure, investment and health care, budget 2021 promises to provide much needed economic momentum in India’s growth cycle, Gurnani highlighted.
“The move to give greater impetus to the Indian manufacturing sector by investing Rs 2 trillion over the next five years is indeed a welcome step. We hope this will pave the way for the adoption of improved digital engineering skills by local players, especially in Industry 4.0, to give them a global opportunity,” he said. chief of L&T Technology Services and MD Keshab Panda.
Tata Technologies chief executive officer and Ms Warren Harris said specific programs through production-related schemes, the construction of R&D infrastructure and empowering skills development in new technologies such as artificial intelligence (AI) and Machine Learning (ML) would help further investment in Engineering and Research.
IMAIT, the executive committee representing the ICT and electronics industry, said the National Language Translation Mission would assist Bararat on the digital highway and allow the masses to travel economically.
“Allocation of R&D funds to develop digital payment technology and tools, the establishment of the National Digital Educational Architecture to bring digital first concept to the operations of the Center and State / Union Territories are a positive step in this regard,” MAIT President Nitin Kunkolieker said.