The National Association of Software and Service Companies will make a presentation before the Finance Minister P Chidambaram on the issues related to taxation of software and business process outsourcing sectors which the Union Budget had failed to address.
"We will be meeting finance minister on issues related to taxation of the BPO sector. The issues related to tax exemptions for software exports under 10A and 10B also needed to be sorted out," Nasscom president Kiran Karnik told newsmen in New Delhi.
He said though the IT industry did not expect the problems related to taxation of the sector to be tackled in the Budget speech itself but there was no mention of the sector that was doing so well in the entire speech.
"We had met finance minister prior to the Budget. For the post Budget meeting we are finalising the issues that need to be taken up," Karnik said.
The other problem that the industry was facing was frequent circulars issued by various tax authorities related to IT and BPO sector.
One such circular had categorised BPO operations of companies into core and non-core and sought to tax them accordingly. This had created much confusion in the industry.
Nasscom is hopeful of early resolution of issues raised by the circular and an end to the practice of frequent circulars.
"We are hopeful of early resolution of problem of frequent tax circulars as the finance minister has himself spoken against the practice," Karnik said.
