Mumbai, March 3: The Budget 2015 has been a mixed bag for the partners, while there few issues to cheer about there were a few pain points that hasn’t been addressed.
National IT association ISODA, has welcomed the GST, “The increase in Service tax though necessary for the GST implementation has been softened by a lower increase than the expected which would increase again in the next year. Time limit for taking CENVAT credit increased from 6 months to one year is a welcome step.”
“Removal of Wealth tax is a welcome step and moving towards streamlining the tax categories as committed by the government.The move towards Central Excise and Service Tax assesses to keep records of invoices in digital form will finally help clean the system of paper and make it greener,” said the official statement.
The association also said that the rate of Income-Tax on royalty and fees for technical services reduced from 25% to 10% would help in the inflow of latest technology a welcome step for the software reseller.
Ketan B Shah, secretary of Bengaluru based AIT, said, “This is the first budget and the seeds are sown on a very positive note. Hope they nurture it well. The Roadmap outlined is clear and positive. Service Tax net will push up the prices till there is clarity on GST.”
“I expected some bold and tough decisions from this budget and some out of the box ideas in tax structure to be implemented by this government. But that was not to come, with such a huge mandate given by the people of India (especially the middle class and the business class) something was expected for them.
Retail business has crashed in the past 6 months and liquidity in monetary markets have dried up, and the government has not addressed this factor at all. Though some exemptions are given to IT Hardware channel partners in terms of exemptions to import in circuit boards of tab’s to boost the Make in India concept, nothing is addressed in other segments of computers at all,” said Arun Nagaraja, Treasurer of the national IT forum FAIITA.
Nanded I.T. Association welcomed the budget. Dipak Mortale, President, said, “Government has announced the setting up of a Self- Employment and Talent Utilisation (SETU) mechanism. SETU will be a Techno- Financial, Incubation and Facilitation Programme to support all aspects of start up businesses, and other self-employment activities, particularly in technology-driven areas. An amount of Rs.1000 crore is being set up initially in NITI Aayog for SETU.”
He also added that avy Tax on Hardware Components required for Laptops, PC, Tablet PC have been exempted and this will help to grow domestic I.T.Industry in the country.
Adimurugan Venugopalan, a partner from Tamil Nadu and an active columnist on Technology, has called the budget confusing. “Made in India LED monitors and cell phone companies may profit, but price won’t go down soon,” he commented.
Jaipur-based Dayashankar Sharma of Rajasthan Computer Traders Association(RCTA) called it as a momentous budget, particularly from the skill development point of view. “We welcome this move with great enthusiasm and look forward to working with the Ministry of Skill Development and Entrepreneurship that will lead this mission.The intention of the government to coordinate efforts under the Make in India mission and the planned Skill Mission is a great idea since we will need very large number of highly qualified skilled manpower to realise the PM’s vision for make India.”