1. 3/2/2011 Financially Yours (FY), Indian Institute of Management Kozhikode Effect on IT Sector 3/2/2011 The Budget has negative implications for the IT sector Tax exemption on STPI units was not extended Units in SEZs would have to pay MAT
2. 3/2/2011 Financially Yours (FY), Indian Institute of Management Kozhikode Tax on STPI units 3/2/2011 Originally the tax exemption was till March 2010, it had been extended till March 2011. IT industry was expecting the exemption to be extended till 2012 when DTC would take effect. This would have reduced their tax burden as well as made the transition to DTC easier for them
3. 3/2/2011 Financially Yours (FY), Indian Institute of Management Kozhikode MAT on SEZ units 3/2/2011 SEZs had a 100% tax exemption for a period of five years and 50% exemption for another five years SEZ developers and firms operating in SEZs are to be taxed at a Minimum Alternate Tax of 18.5% IT firms who were planning to shift to SEZs would be badly affected
4. 3/2/2011 Financially Yours (FY), Indian Institute of Management Kozhikode MAT on SEZ units 3/2/2011 The idea of introducing MAT on SEZ units is controversial The basic idea of SEZ is:- Tax free zones setup to promote exports With the introduction of MAT, SEZ units only have an advantage wrt to indirect taxes
