Union Budget 2010: Tech gets its share of mindshare, moolah
Consumers will have to pay Rs 500/600 more on a computer system that costs Rs 25,000 to Rs 30,000 due to 2% excise hike.
By TNN |
The words technology and software were used 14 times by the FM in his budget speech this year, more than double from last year Much of that was used in the context of massive automation and IT projects of the govern ment, which should come as a big boost to India’s IT sector still reeling from the recession.
However, consumers will have to pay Rs 500/600 more on a computer system that costs Rs 25,000 to Rs 30,000 due to 2% excise hike.
The Unique Identification Authority of India (UIDAI) has been allocated Rs 1,900 crore The financial inclusion tech nology fund, which seeks to ex pand banking services to un serviced areas, has got an ad ditional Rs 100 crore. Two more online income tax processing centres are on the anvil, apart from a host of IT projects. Rs 1,133 crore has been allocated for computerisation of com mercial taxes in states.
“For the first time, there’ a solid acknowledgement of the role of technology in the government’s agenda. Tech nology will play a big, big role in implementation of proj ects,” said Som Mittal, pres ident of Nasscom.
A huge relief has also come in the form of the clar ification on Section 10AA of the IT Act related to SEZs “Now, all SEZ profits from 2006 are exempt,” said Infos ys CFO V Balakrishnan.
On the flip side, many of the smaller IT companies are disappointed that the FM did not announce an extension of the tax holiday.
The 2% excise duty will be passed on to the consumers Acer and Lenovo said a price rise was inevitable. “We will raise our prices after taking into consideration the fine print,” said Amar Babu, MD Lenovo India.
The 4% excise duty on com ponents like microprocessors hard disk drives and floppy drives applies only if you go to a retail store to buy these parts. As most buy complete systems, this is expected to have a limited impact.
However, consumers will have to pay Rs 500/600 more on a computer system that costs Rs 25,000 to Rs 30,000 due to 2% excise hike.
The Unique Identification Authority of India (UIDAI) has been allocated Rs 1,900 crore The financial inclusion tech nology fund, which seeks to ex pand banking services to un serviced areas, has got an ad ditional Rs 100 crore. Two more online income tax processing centres are on the anvil, apart from a host of IT projects. Rs 1,133 crore has been allocated for computerisation of com mercial taxes in states.
“For the first time, there’ a solid acknowledgement of the role of technology in the government’s agenda. Tech nology will play a big, big role in implementation of proj ects,” said Som Mittal, pres ident of Nasscom.
A huge relief has also come in the form of the clar ification on Section 10AA of the IT Act related to SEZs “Now, all SEZ profits from 2006 are exempt,” said Infos ys CFO V Balakrishnan.
On the flip side, many of the smaller IT companies are disappointed that the FM did not announce an extension of the tax holiday.
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The 2% excise duty will be passed on to the consumers Acer and Lenovo said a price rise was inevitable. “We will raise our prices after taking into consideration the fine print,” said Amar Babu, MD Lenovo India.
The 4% excise duty on com ponents like microprocessors hard disk drives and floppy drives applies only if you go to a retail store to buy these parts. As most buy complete systems, this is expected to have a limited impact.
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