Govt Extends Tax Concessions On STPI By A Year
30th April 2008 @ 12:00
![bpo1[1]](http://thinkingstreet.com/business/wp-content/uploads/bpo1[1]-13.jpg)
In a much-awaited relief for the IT industry, software companies can now enjoy benefits of the Software Technology Parks of India (STPI) scheme for another year. The government has extended the tax concessions under Section 10A of the Income Tax Act to March 2010.
The scheme was to expire in March 2009 under the sunset clause provided in the scheme. On an average, IT companies would get a revenue benefit of at least 5-7% - on the effective tax rate - because of this extension. Normally, companies have about 50% business located in technology parks, export revenue from which is fully tax-exempt.
The move will benefit smaller companies more because SEZs have remained off-limits for them.
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