Channel want less tax, more sops

DQW Bureau
New Update


Every year the Budget is looked forward to with much anxiety and hope. While

some segments are impacted in a positive manner, others feel the announcements

carry no significant news. This year, with the Budget just around the corner, we

spoke to channel partners across the country, from a cross section of verticals,

dealing with different products and services, about their expectations from the

Finance Minister this year around. A majority felt that the taxes on software,

accessories and peripherals should be reduced in order to encourage organized

trade. Others shared that they were looking forward to taxes being decreased and

sops being introduced.


Umang Mehta, MD, Roop Technologies, Mumbai

We want eight percent rationalization of excise on all products. Presently

there are different rates of excise for different products and we want a single

excise rate for all the products. Apart from that we also expect the removal of

four percent SAD, which is applied on imports, or else give credit against VAT.

Zainul Tinwala, CEO, HT Impex, Mumbai

In the past three years the budget has always brought good news for the

importers of IT products. We want the government to increase the abatement

amount on IT-products since last month only the Excise and Customs Department

had applied excise on MRP. We want the excise department to increase the

abatement from 25 to 50 percent.


Yogesh Thakkar, CEO, Rhythm Electronics, Vododara

We want the government to rationalize taxes all over the country. Apart from

that we want the government to give some kind of incentives to the users so that

they are motivated to buy PCs and that will lead to indirect growth of the



Sanath Babu, Director, Sri Durga Computech, Bangalore

In the forthcoming budget we are hoping that taxes come down. Whether it is

income tax reduction or a cut in customs duty we hope that there would be enough

sops and benefits for the hardware industry. Also, we are looking for some price

reduction and related sops in the memory card and hard drives space because that

may help reduce the impact of the gray market on our trade.

Prabhakar Kini, CEO, Kinfotech, Bangalore

As far as the forthcoming budget is concerned I am hoping that the limit for

personal taxation is extended to Rs 1.5 lakh. As far as the IT trade is

concerned I hope that the tax exemption for IT companies, especially small and

medium software businesses is extended from the current 2010 to another five

years at least. Thirdly I hope that traders who have suffered a negative impact

due to rupee appreciation are given some benefits and compensation.


Ketah Shah, CEO, Kruthicomp, Bangalore

As far as the budget is concerned I hope that there is a rationalization of

duty rates for products across the hardware industry. First of all there needs

to be a better classification of IT products as to which products fall under the

'IT' category. Given the buoyancy in the Indian market I am not sure that we

would get any tax reductions or sops this time.

Sunil Kukreja, CEO, Kukreja Electronics, Bangalore

With the rupee depreciation that we have seen in the recent times, I do not

expect any price reduction. On the contrary I feel prices of IT products would

actually increase. However I still feel we can expect some reduction in the

excise duty in the forthcoming budget.

Mohit Hegde, CEO, Creative Infotech, Bangalore

I don't have many expectations from the forthcoming budget. However, I still

would look forward to some tax reduction because I feel taxes are being imposed

on almost everything right now. We would certainly benefit from some reductions.


Sathya Prasad, CEO, Vanpac Systems, Bangalore

As of now the customs duty on IT products is not very high. However, I feel

it can be reduced further. Without having too many expectations from the budget,

I hope that there would be considerable reduction on the excise duty as well.

That would definitely benefit us.

Satyen Vyas, CEO Vitage Systems, Bangalore

I do not have any specific expectations from the budget this year. However

if the government could advance or pre-pone the implementation of the GST, it

would do us good. I hope that happens.

Harish Shetty, Director, Binary Systems, Bangalore

Our expectations from the budget this year would be a reduction in customs

tax and a possible duty reduction. Service tax, which is currently pretty high,

needs to be reduced definitely. In addition we would want relief in personal

taxation and also some sort of streamlining on fringe benefit tax, like those on

conveyance and mobile.


Jayessh Mehta, CEO, Future Businesstech, Bangalore

As far as expectations from the budget, we are definitely looking forward to

reductions in excise duty. Also the CST we expect would be reduced by one

percent. This would become beneficial to us. All in all however we do not have

too many favorable expectations this year.


Inderpal Singh, Aman technologies, Jammu

This budget, the expectation is that the price should go down in the market

of peripherals, memory products and accessories. Specifically, government should

remove taxes from software products in order to increase its promotion in the

market. Custom duty on IT products should also go down.

Kishore Makhija, Priyanka Computer Services, Raipur

I don't expect anything new from the budget. I guess there won't be anything

as such that would have any effect on the IT industry. Last year also, the

budget did not have any impact on the IT industry and this year also, it would

be more or less same.


Udit Kumar, Life Computer, Varanasi

With the forthcoming budget, I am expecting the prices of IT products to be

reduced so that the market penetration of technology reaches a higher level in

the non-focused market of B and C-class cities.


Dayananda Ratho, Director, Cyber Software & Services, Bhubaneswar

Software prices in India are still on the higher side, which is encouraging

usage of pirated versions. It's high time the government should revise the tax

structure levied on software and bring some reformation into it so that it

enhances the sale of original software. Though I have my doubts, I am hopeful

that this budget our Finance Minister will announce some relaxation on the same.

Rajesh Kumar, Director, Peripheral Engineers, Patna

As per my knowledge the government is going to bring down the excise duty

from existing 16 to 12 percent. That will really help the Indian PC and

peripheral market to grow further. In such a scenario, prices of printers and

MFDs, hard disks and LCD monitors are going to reduce post budget. I am looking

forward to that because this formal declaration will encourage the customers and

I am expecting a good sale of these products from April onwards.

VK Bhandari, CMD, Supertron Electronics, Kolkata

As far as memory products are concerned I think the Indian government should

make all efforts to bring down the duty as much as possible. Sadly the market of

RAM in India is still dominated by gray trading, therefore to streamline the RAM

market and make it organized it is essential to bring down the existing duty

rate. Apart from that the CV should be brought down from existing 16 to eight

percent, which will overall be beneficial for the Indian IT hardware industry,

as the affordability factor would increase further.

Rajendra Seksaria, Director, Balaji Solutions, Kolkata

It is expected that the excise duty will be brought down from 16 to 12

percent. In fact I am expecting that the duty be reduced to eight percent.

However, in case the excise duty is reduced products like, motherboard,

printers, MFDs, hard disks, RAM, etc will benefit. This will especially be

beneficial for the memory market, which is largely dominated by unorganized