Wednesday, 25 January 2017

Budget wish list: IT, ITes & e-commerce

1475085267-9225
Industry size

Approx: $143 bn (IT - ITeS) plus $17 bn (e-commerce)
Employment figure: Approx 3.9 million 
Contribution to GDP: About 9.3% 

Key issues or areas of concern for the sector
Budget 2017 Date| Global political uncertainty due to the recent developments in the US and UK could impact growth for the Indian IT sector as these are one of the largest markets for the Indian IT-ITeS companies. Given that emphasis could be to create jobs in the US could have negative influence on outsourcing of jobs from outside the US, which in turn could have implications on mobility of IT specialists
The new GST law poses multiple challenges for e-commerce firms, especially around compliance and related formalities, with e-commerce platform being liable to collect TCS (tax collected at source) on supply of goods and services by supplier.
Due to significant automation and changes in technology, employees are being re-skilled, and work culture is witnessing a major shift with enhanced focus on digital skills and just-in-time training.
Industry demands
Defer applicability of Place of Effective Management and clarify provisions around claim of foreign tax credit
Definition of Equalisation Levy is ambiguous and clarity is required. There is absence of clarity on availability of credit. Notification has to be issued to clarify that the levy is in nature of tax and eligible for credit.|READ MORE 

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