Budget 2014: PwC seeks scrapping of minimum alternate tax for IT industry

MUMBAI: Consultancy firm PwC has called for removal of minimum alternate tax ( MAT) in the coming budget as a sop for the IT industry.

"Removal of MAT has been a long-standing demand of the industry, which should be considered by the new government," PwC India's technology leader Sandeep Ladda said in a statement today.

It will give the necessary fillip to the increasingly challenged margins of the players in the IT sector, he said.

PwC's budget wishlist also includes incentives for segments like software and hardware, engineering and semiconductor which are seen as growth drivers, he said.

PwC is also looking for incentives for specialist segments which would boost investments in the country and will create a conducive ecosystem for carrying out business, Ladda added.

Despite being labour surplus, the country is facing an apparent talent deficit. The industry in partnership with the government needs to address the industry-academia disconnect by partnering with engineering and other technical institutes and enhancing their in-house training facilities, he said.