The IT channel's apprehensions should be taken into consideration in the upcoming budget. The past budgetary inputs have not been too supportive for the IT channel and tend to have been more mismanaged by the governments both at the Center and states.

While I refer to IT channel I am including the hardware, software and services. For hardware, the past has been good with the lowering and in some case removal of excise, but on practical grounds it has been swapping of one into the other. The introduction of service tax into the IT channel has started to pinch hard not only because of its slab but also because of the opacity and vagueness of the taxation policy. The recent cases of service tax on schemes and promotions on channel partners and distributors seemed more autocratic and unfair, and struck the channel at large leaving them whimpering.

The industries and IT sector fetches far more revenue in comparison to agri-sector and none of the FMs have thought of relieving the pressures from them, instead have incremented the pressures in any way that they could.

The IT channel would definitely benefit if the service tax issue is revamped, GST introduced across the nation and VAT scrapped off. The present VAT structure has beaten the very thought and spirit in which it was to be implemented. Particularly in states like UP, VAT has taken the proportions of 'Very Aggressive Tax'. The CST stays despite the VAT implementation which should have gone by now. Boarder cities are the ones that feel the crunch because of the non-uniform structure and implementation.

Income Tax is also one issue that should be taken care of as up to now all budgetary implications have been to soothe and cajole the service people (mostly non-performers) at the expense of the taxpayers. Income tax slabs would definitely increase but the benefit would go to the un-intended.

Another very important aspect that the government seems to have overlooked and I for one would like to have some thoughts given to, is the non-facilitating and non-promotion of IT industrial infrastructure within India. A firm and decisive check on the imports from other countries especially China is a must have. Theoretically, we are surviving the recession because we are independent on grains and basic needs, but we all know practically the scene is different, as survival on one sector alone is not recommended for any economy and with the IT sector having introduced the terminologies like backups, redundancy and the like, the government has to have a sympathetic view to the IT requirements.

Overlooking the industries and IT would not be a wise man's steps. The FM needs to understand that India has proved it caliber in the IT world over and steps must be taken to further improve the scenario for the IT.

I expect that the burden of the trade with respect to taxes should be revised and balanced so as to remove the pressures. The government now should think as to how to keep the cow healthy rather than to 'TAX' it without thinking of its health. The introduction of the service tax might have proved good revenue source for the Center but practically it has been an intangible and painful thing for business.

Businesses are taxed left, right and center without facilitating its growth. Summing up, I think if expectations, for proper taxation, reduction on levies and promotion of IT industry for domestic production and service, GST made all-inclusive, would be taken care of in the budget it would be a lot beneficial. Coming out of the statistical cocoon to face, understand and do something about the ground reality is the need of the hour.

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