Dear Tarun, Good attempt.
같같같같같같같같같같 Best regards, Arjun [EMAIL PROTECTED] [EMAIL PROTECTED] [EMAIL PROTECTED] 8:49:30 PM Saturday, March 15, 2003 같같같같같같같같같같같같같같같같같같같같같같같같같같같같같같같같같같같 Friday, March 14, 2003, 7:04:44 PM, you wrote: TD> ________________________________________________________________________ TD> ________________________________________________________________________ TD> http://www.express-computer.com/20030317/budget1.shtml TD> FM-speak on IT TD> 102. IT is India뭩 showpiece success story. We have to not just maintain TD> its momentum of growth, but continuously encourage it. Therefore, it is TD> proposed that the concessions extended to IT under Sections 10A and 10B TD> of the Income Tax Act will continue as originally envisaged. As per law TD> such companies as are currently covered by these tax exemptions lose the TD> benefits upon change in their ownership or shareholding. This is not TD> logical. I am, therefore, removing these restrictions; the benefit of TD> such tax exemptions will remain even in the case of amalgamation or TD> demerger. TD> 103. Another anomaly is levy of excise duty on pre-loaded software in TD> the case of computers. As software is already exempt from excise duty, I TD> see no reason why this benefit should be denied simply because it gets TD> loaded in a computer. From now, the value of pre-loaded software will be TD> excluded for the purpose of charging excise duty on computers. TD> 104. Customs duty on specified electronic components for IT industry is TD> being reduced in conformity with our WTO commitment. TD> 105. In addition, Customs duty on a number of capital goods used by the TD> telecom and IT sector for manufacture of components will be reduced from TD> 25 percent to 15 percent. For optical fibre cables, used widely for TD> networking to provide bandwidth to the IT community, the Customs duty is TD> also being reduced from 25 percent to 20 percent. To help the domestic TD> industry to manufacture e-glass roving used for making optical fibres, TD> it is proposed to reduce the import duty on specified raw materials for TD> the manufacture of e-glass roving from 30 percent to 15 percent. TD> 106. Telecom and domestic satellite service companies enjoy the benefit TD> of tax holiday. Since it takes quite some time for such projects to TD> materialise, I propose to extend the deadline of setting up the units by TD> one more year to March 31, 2004. TD> [From the text of the Union Budget 2003-04 speech] TD> http://www.express-computer.com/20030317/budget2.shtml TD> Impact on the IT sector TD> Positive impact TD> * Duty on 12 electronic components reduced as per WTO commitments. TD> * Customs duty on specified telecom equipment reduced to 15 percent. TD> * Customs duty on optical fibre reduced from 25 percent to 20 TD> percent. TD> * Customs duty on specified raw material for manufacture of e-glass TD> roving reduced from 30 percent to 15 percent. TD> * Customs duty on routers, modems and fixed wireless terminals been TD> reduced from 15 percent to 10 percent. TD> * Pre-loaded software exempt from excise duty. TD> * Tax holiday available for telecom, domestic satellite service TD> companies� network of trunking, broadband network and Internet services TD> continued till March 31, 2004. TD> * Concessions extended under section 10A and 10B will continue. TD> * Tax exemptions in relation to the tax holiday will continue on TD> change in the ownership of companies or change in shareholding. TD> * Overseas investment limit increased to 100 percent from present TD> limit of 50 percent of the net worth of the Indian company. TD> * Computer-enabled services, namely data processing, networking, TD> back office processing and computer facility management shall not be TD> subject to service tax. TD> Negative impact TD> * Business auxiliary services, franchise services, commercial TD> training or coaching, commissioning or installation, Internet caf� TD> services, maintenance or repair, technical testing and analysis, TD> technical inspection and certification brought under service tax net. TD> * Service tax rates hiked from 5 percent to 8 percent. TD> ________________________________________________________________________ TD> My comments:- TD> ________________________________________________________________________ TD> 1. Earlier the Bundled software component in PC hardware was subject to TD> excise. TD> 2. This has been given a tax exemption from excise. TD> 3. That means to claim excise tax exemption the PC manufacturers will TD> have to actually declare the value of the software to the Government for TD> claiming exemption on excise. TD> 4. The same valuation can be now used for claiming un-bundling of the TD> software from the hardware or the OEM/PC manufacturer is forced to TD> undervalue the software and pay a higher duty which they wouldn't do as TD> it hurts their interests more to reduce his cost of . TD> 5. We need to Draft a letter for the IT minister and CC'ed to Finance TD> Minister "To make the OEM's --unbundle on request-- taking care that TD> OEMs/PC Manufacturers do use the same valuation for bundled software TD> while advertising and refunding the money to the end-user as they have TD> used to claim the excise exemptions". Thus promoting consumer interests TD> and preventing excise loss for the GOI . TD> (Okaaayeh!!! --- I will try to re-draft the letter during weekend) TD> Tarun Dua TD> ================================================ TD> To unsubscribe, send email to [EMAIL PROTECTED] with unsubscribe in subject header. Check archives at http://www.mail-archive.com/ilugd%40wpaa.org
