Comments on: Government blaming the IT Sector Now?

By: Abhishek

Abhishek — Mon, 20 Jul 2009 10:57:47 +0000

” The IT Company does want to support India and it is already doing so by providing jobs and training to Indian Citizens.”

Is the IT company providing jobs and training to “support India” or to generate wealth for shareholders as mentioned in point 1?

“Most of all it is a sector which has not received much support or subsidy from the Government and still employs millions in India.”

The IT industry pays the least tax (between 12 – 15%) as opposed to the statutory tax rate of 33.99%. This is due to the various STPI, SEZ and other exemptions as mentioned by Kaushik.

Also, isn’t there a difference between saying “The scale of business in financial inclusion is so big that we need participation from big IT companies” and “accusing the IT companies of failing the government”?

By: Kaushik

Kaushik — Sun, 19 Jul 2009 03:55:48 +0000

“Most of all it is a sector which has not received much support or subsidy from the Government and still employs millions in India”

What about Sofware parks, STPI and all those tax holidays that IT Firms enjoy?

By: natrajan

natrajan — Sat, 18 Jul 2009 18:47:25 +0000

@ AT_Korvus thanks buddy

By: AT_korvus

AT_korvus — Sat, 18 Jul 2009 13:05:44 +0000

@Nattu: re point 2, brilliant! never thought of it that way o_O

By: natrajan

natrajan — Sat, 18 Jul 2009 12:12:51 +0000

I’d differ on 2 points

1. Indian Govt has given Tax subsidies to the IT industry which is about to expire and NASSCOM is lobbying with the government to extend the subsidies.

2. A bench in an IT company is a strategy employed by the company to eliminate dependency on skilled workers. That is why any IT Company overhires and puts people on the bench. This brings down overall salary levels.

I agree with the remaining points and also agree that the Govt should not find faults with such an efficient Industry like IT.