Date:01/03/2007 URL: http://www.thehindubusinessline.com/2007/03/01/stories/2007030105741900.htm

Back `Higher tax liability'

Our Bureau

Bangalore, Feb. 28

The levy of MAT would result in a higher tax liability for MphasiS, whose tax outgo as a percentage of PBT stood at 3.7 per cent for year-ended March 31, 2006. "Our additional tax liability would be over seven per cent," said Mr Alok Mishra, CFO, MphasiS. He said that the Finance Minister had singled out the STPI units by imposing MAT. Alleging that the Minister has been partial to the SEZ units by not extending MAT to companies under the Section 10 AA (which come under SEZ), Mr Mishra said that STPI firms operating from rented premises would have to shell out more due to the levy of 12.24 per cent service tax on rentals. Smaller IT firms, which operate from rented premises and which could not set up their own SEZ units by investing in 25 acre of land, would be the worst sufferers, Mr Mishra said.