ESC asks govt to make India a repair hub for IT goods
ESC asked the govt to create the right fiscal environment for promoting India as a major service hub for repair and refurbishment for IT and Telecom goods.
By PTI |
NEW DELHI: Electronics and Computer software Export Promotion Council (ESC) on Tuesday asked the government to create the right fiscal environment for promoting India as a major service hub for repair and refurbishment for IT and Telecom goods.
"Market for repair and refurbishment services world-wide is estimated at over 110 billion dollar. Spiralling cost of repairing in developed countries like the US and Europe is compelling the companies to send goods overseas, where such services are provided at lower prices," ESC said in its presentation to the Finance Ministry as a part of its pre-budget exercise.
However, he said the products, which has been imported for repair and refurbishment should be exported. Such goods should be re-exported after carrying out the required services.
ESC also urged the Finance Ministry to favourably consider the industry appeal to grant tax sops to the IT units irrespective of the location.
"The number of small and medium enterprises in the IT export segment is close to 500. Most of them have the export turnover less than Rs 5 crore. Compelling them to migrate to SEZs to avail tax sops will have many adverse effect, such as increased cost of shifting," it said.
"Market for repair and refurbishment services world-wide is estimated at over 110 billion dollar. Spiralling cost of repairing in developed countries like the US and Europe is compelling the companies to send goods overseas, where such services are provided at lower prices," ESC said in its presentation to the Finance Ministry as a part of its pre-budget exercise.
However, he said the products, which has been imported for repair and refurbishment should be exported. Such goods should be re-exported after carrying out the required services.
ESC also urged the Finance Ministry to favourably consider the industry appeal to grant tax sops to the IT units irrespective of the location.
"The number of small and medium enterprises in the IT export segment is close to 500. Most of them have the export turnover less than Rs 5 crore. Compelling them to migrate to SEZs to avail tax sops will have many adverse effect, such as increased cost of shifting," it said.
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