NASSCOM welcomes PM's initiative on IT taxation

BANGALORE, INDIA: NASSCOM today welcomed the announcement by Prime Minister Manmohan Singh to constitute a Committee to Review Taxation of Development Centres and IT Sector, said a press release.

Som Mittal, President, NASSCOM said, ''I would like thank the Prime Minister for his proactive support in creating this committee that will help to address current issues being faced by the sector as well as focus on implementing the Safe Harbour provision. An announcement by the Prime Minister demonstrates the focus and commitment that the Government of India continues to provide for enabling the growth of the IT-BPO industry in the country.''

Also read: PM sets up committee on taxation in IT sector

NASSCOM has been closely working with the Ministry of Finance, Directorate of International Taxation and CBDT on specific issues related to transfer pricing and onsite services.

India today ranks as a great destination for global sourcing of technology and BPO and a consistent policy regime is important for the industry to continuously grow and innovate.

Multinational development centers have played a key role in building the industry, create best practices and demonstrate the overall value proposition of India and this announcement would allay concerns of industry, global corporations and investors, said the press release.