Budget 2012: No exemption vis-a-vis SEZ income from MAT disappointing, says TCS

BANGALORE: TCS said for the IT industry, the request to exempt SEZ income from MAT has not been granted in the Union budget and this is disappointing.

But the company's CEO and MD N Chandrasekaran also said that for the IT industry the APA will be useful to ease transfer pricing litigation.

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R Chandrasekaran, Group Chief Executive, Technology & Operations, Cognizant, said: "The IT services industry that was looking forward to stability, consistency and simplicity in policymaking was served a mixed bag".

For the industry, which has been looking for greater clarity in transfer pricing, the move by the Finance Minister to implement the Advance Pricing Agreement is a serious recognition of the importance of cross-border trade in a globalised economy and would usher in greater tax certainty for foreign investors in the coming years, he said.

"This, along with the phased move towards the Direct Taxes Code, is a welcome development and a move towards stability in tax structure", he added.