Thursday March 1, 01:52 AM
IT industry fumes at FM's proposals |
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Finance Minister P Chidambaram's budget proposals have left the IT industry fuming, for these companies will be hit where it hurts most: the bottomline as well as retention of talent. They could well lose the competitive edge in the global market.
NASSCOM, too, has expressed concern that these measures would dent the burgeoning IT sector. The industry would be hit by three proposals-extension of Minimum Alternative Tax (MAT), inclusion of ESOP (employee stock option plan) under FBT (fringe benefit tax) and a service tax of 12.5 per cent on commercial complexes which would prove an additional burden on expenditure incurred by these companies.
"We are obviously upset. We have created the highest number of jobs - 3,80,00 this year, but there are no rewards. Instead, the government has chosen to bash (the industry). These steps are retrograde and unnecessary," T.V. Mohandas Pai, head of Human Resources, Infosys Technologies Ltd.
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