The $100 billion Information Technology sector got a major boost from the Ministry of Finance which declared that they will continue to benefit from Tax exemptions for onsite work. The Ministry said that the IT Firms in India which deploy software development professionals onsite at client locations overseas, will continue to benefit from tax exemptions. This was well received by across the board by all IT companies including Infosys, TCS and Wipro.
CBDT (Central Board of Direct Taxes) said on Thursday that ‘onsite’ software development by software firms at the client locations, is deemed exports, thus making the revenue earned for that work eligible for benefits. The Board also also indicated that manpower deployment overseas and the transfer of a software development unit from one SEZ (special economic zone) to another will not be impacting these tax concessions.
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