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IT firms say Budget is positive, pro-industry
The IT industry heaved a sigh of relief on discovering that Budget neither touched the existing tax structure nor imposed any other tax.
Information Technology firms on Thursday welcomed the Union Budget 2004-05, terming it as "positive and pro-industry", even though the IT sector was left untouched, except for full exemption of customs duties on computers.
The IT industry has heaved a sigh of relief on discovering that the Budget neither touched the existing tax structure nor imposed any turnover tax as feared.
Aftek Infosys Ltd chairman and managing director Ranjit Dhuru said the Budget has not disturbed anything, contrary to the fear of an imposition of turnover tax.
"This is a positive Budget, but not a populist one as the Finance Minister has not gone overboard in giving any kind of sops," he said.
The exemption in customs duty for computers would result in a reduction in cost to Business Process Outsourcing (BPO) companies, with many of them opting for either replacement or upgradation of their equipment, he said.
This would also help in improving quality of services, as many organisations would install state-of-the-art equipment, Dhuru opined.
Patni Computers chief financial officer Deepak Sogani said the Budget in general would help IT exporting companies, as the Finance Minister has emphasised Special Economic Zones as catalysts to growth.
The exemption of duties on computers would result in a fall in hardware prices, he said, adding, "This is a positive step for the hardware industry, while the benefits would also be reaped by the software sector."
