Date:01/03/2007 URL: http://www.thehindubusinessline.com/2007/03/01/stories/2007030105731900.htm

Back `Case for continuity of STPI'

Our Bureau

MR ATUL NISHAR

Bangalore, Feb. 28

The very argument that IT companies should pay MAT is a strong case for the continuity of the STPI regime. According to the double tax treaty, tax paid abroad is available as credit to the company. Because of this, players like Hexaware will not be effected," said its Chairman, Mr Atul Nishar.

"As there is the facility to carry forward the credits of MAT, which is available to all companies, in effect we will not have much impact on profits," said Mr Amar Chintopanth, CFO, 3i Infotech.

At present IT companies are exempted from tax on exports. However, post March 2009, they would be taxed unless the Finance Minister extends the benefits. Hence, MAT should not impact the IT companies since they would anyway be paying tax from 2009 onwards and it should not really matter to these companies," Mr Rajiv Anand, Associate Director, PWC.