Business Process Outsourcing News and Information

NASSCOM, India’s face to the world as far as outsourcing and IT is concerned has urged the country’s finance minister to extend the Software Technology Park (STP) scheme after2009.  It asks the government to extend tax incentive to the information technology and outsourcing/ITES sector for the next ten years. As Indian companies are struggling to maintain their bottom-line intact, mainly because of spiraling wage hike, rise of Indian currency Rupee against Dollar, NASSCOM’s move seems justified, but only time will tell, whether Government of India will give a positive nod the outsourcing body’s wish list.

The wish list however does not however end with that,  

The other four issues are

1.       Broadening of the eligibility criteria for Large Tax Payer Unit (LTU) scheme

2.      Foreign Tax Credits

3.      Advance Pricing Agreements (APA) to provide upfront tax certainty and refund of service tax paid on services utilised for export of computer software and BPO services. Source