Sustaining software growth
T. C. A. Ramanujam
The Hindu Business Line
The Special Economic Zones Act, 2005 brought in independent provisions for tax incentives and exemptions for certain units and industries over a period of years. Section 51 of the SEZ Act lays down that the provisions will have overriding effect notwithstanding anything contained in any other law for the time being in force to the contrary. Section 10AA of the Income-Tax Act, 1961 allows a 100 percent deduction on profits derived by a unit-located in SEZ from the export of articles or things or services for the first five consecutive assessment years. Section 80-IAB allows a deduction of 100 percent in respect of profits derived by an undertaking from the business of development of SEZ notified after April 1, 2005.
An off-shoot of the SEZ policy was the establishment of Software Technology Parks set up in accordance with the STP scheme notified by the government of India in the Ministry of Commerce and Industry. This year’s budget announces the end of all the advantages gained over the past decade and the Software Technology Parks scheme is practically scrapped. There is apparent conflict of interests between the SEZ developers and those operating Small Medium Enterprises (SME) as Software Technology Park.
(The author is a former Chief Commissioner of Income-Tax.)
Standard Chartered expects India to grow at 7% for next decade
MUMBAI: Countries like India, Vietnam and Indonesia are expected to grow at 7% for the next decade, according to a Standard Chartered report on the world economy. However, there are also concerns of short-term crises, where the report puts India at par with five African economies like Uganda and Mozambique.
“Despite the genuine risk of a near-term crisis, Vietnam, India and Bangladesh from south Asia, and five countries from Africa, namely Nigeria, Ethiopia, Tanzania, Uganda and Mozambique will see a growth of 7% in the next decade,” says Gerard Lyons, chief economist of Standard Chartered Bank.
Los Angeles-based global real estate consultant CB Richard Ellis (CBRE) has stated that the first financial quarter of calendar year 2011 has witnessed a 20 percent or six million sq ft growth in office space in India when compared with the same period, a year ago, in a report released Wednesday. The report, ‘India office market view-Q1 2011’ reviewed rentals for grade A office space across seven cities – Delhi NCR, Mumbai, Bangalore, Chennai, Hyderabad, Pune and Kolkata.
Rapid Metro on right track
The Times of India
Construction work for the Rapid Metro link which will connect Sikanderpur metro station to Cyber City, DLF phases 2 and 3, and the NH8 is right on track. According to officials, the overall project is already 25 percent complete; and with the preliminaries almost over, the construction work is all set to enter its second phase this year.
IECC, SBG tie-up for construction products plant in India
IL&FS Engineering & Construction Company (IECC), formerly known as Maytas Infra, today said it has joined hands with Saudi Arabia-based infrastructure conglomerate Saudi Binladin Group (SBG) for manufacturing precast construction products in India.
SBG and IECC are intending to bring to India precast construction technology and processes, which would enable reshape building technologies and help in faster and more cost-effective solutions to the local industry, the company said in a statement.