IT industry looking for transparency : Pankaj Jain,ESET India
IT industry is looking for the upcoming annual budget to bring more clarity in taxation policies and overall government’s vision of IT industry as the one engaging for the country’s growth says Pankaj Jain, Director, ESET India.
Before every budget session, first question in mind comes that does software should be treated as goods or service and thus how it should be taxed? Every year after March we don’t get any sign of clarity, rather some more taxes & compliance.
After certain cases that software industry, particularly its security segment, had faced the uncertainty among industry players and have become more complicated. The process of the industry is becoming more consistent and transparent and but have been interrupted again though for both local and international companies represented in India the questions of rules and policies’ transparency is the vital one.
We hope that Government will have more budget and specific goals for “ITiazation” in various sectors, education institutes & other possible areas.
Delaying GST for whatever reason is not a positive sign for our industry as it could have solved many complications arising while implementing tax on software, cloud, SaaS products. The clarity on the future strategy for the implementation of the GST would definitely add some good feel.
While the government seems to be looking for encouraging local software products, it should also look at copyrights issues first. With international players having the biggest share in Indian software industry and current copyright scenario keeps the country in a list of “wild markets” with worst weak standards and policies. IT industry is definitely looking for a budget that can both encourage FDI by making taxation rules simple and logical and promote Indian IT products and services in the global arena.
Apart from software-related issues we believe that government will come forward with budget aiming to make Indian more digitized and advanced. Reducing taxes on tablets, smart phones would help it a lot, as well as abolishing the inverted duty structure on computer components that could promote hardware manufacturing in the country and make locally manufactured goods cheaper for Indian consumers. At ESET we see a huge potential in mobile security market, but first such devices as smart phones, tablets are required to be more accessible for people.