– One of the main highlights in the last budget was enabling e-filing, e-payment of taxes, computerisation of commercial taxes and the creation of ‘Sevottam’ which has elevated the movement for country’s development in automated mechanism for tax administration. This has been crucial in boosting technology adoption amongst Indians. In this budget, we hope that the government enables more options in tax, pension and similar activities through an online platform to make it convenient for Indian citizens.
– Another crucial matter that needs to be addressed by the Finance Minister is clearly demarcating the line between treating software as goods or services. Hence relevant taxes can be imposed and companies can comply with the appropriate laws. As the software products industry is largely reliant on the channel ecosystem, the government should consider reduction of TDS for software resellers from the prevailing 10% to 1-2% to align with the corporate tax rate. Further clarification is also required in the definition of ‘Place of Effective Management’ in the proposed Direct Tax Code, given that we are the Indian subsidiary of multinational company.
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