A high-level group on the services sector headed by Planning Commission member Anwarul Hoda has recommended that the tax holiday under the software technology parks of India scheme be continued beyond 2009.
"If the tax holiday is withdrawn, STPIs will lose the level-playing field vis-a-vis special economic zones. We have recommended that the government either withdraw the tax holiday to SEZs or continue the incentive to IT companies," an official with knowledge of the deliberations told
Business Standard.
STPIs enjoy direct tax exemption under sections 10A and 10B of the Income-Tax Act, 1961.The benefits are scheduled to expire on March 31, 2009. There are more than 8,000 STPI-registered
<
div class="clear">