The Hindu Business Line : Extend 10A/ 10B benefit to BPO sector

Most of us would know that Indian IT and BPO industry recorded revenues of $39.6 billion in 2006-07 and is expected to grow to over $60 billion by 2009-10. Given the higher than IT growth rates that NASSCOM projects for the BPO industry, this sector has a huge potential to generate quality direct and indirect employment and infrastructure across the country. The industry being a nascent one is still in investment mode both from an infrastructure development and employee ta lent development perspective and due to the lower billable rates has net income margins of only around 8-12 per cent, which again is now being challenged by rupee appreciation. The Government can clearly provide the required impetus for growth to this industry by extending the 10A/ 10B benefit to this sector for another five years.

Krishnan Akhileswaran

Head - Investor Relations

Firstsource Solutions Ltd

Tax holiday for T&D equipment

Power sector is one of the key sectors in infrastructure and merits tax sops. The current Section 80IA provides tax holiday only to laying a network of new transmission and distribution lines. This is too restrictive. The power sector can grow only when the equipment manufacturers also ramp up the production. Also when new substations are built then the quality of power improves and also the T&D losses are cut down. Thus T & D equipment manufacture as well as setti ng up substations should also qualify for tax holiday.

L.V.Srinivasan,

Chartered Accountant, Chennai

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