Budget should help make India a telecom and IT manufacturing hub: Elitecore Technologies CFO

Telecom Lead India:
In the past few years, Indian government has adequately provided concessions
and provisions to ensure significant growth in IT, ITes and BPO industry. We
hope that the trend will continue this year as well. Rakesh Mistry, chief financial
officer, Elitecore Technologies, shares key expectations from the Union Budget
2012-2013 for Elitecore Technologies, an IT product company that works with
several mobile operators.


1) Among our key expectations from the budget, we would
like a withdrawal of the 20 percent Minimum Alternate Tax (MAT) for SEZs. This
would provide the right incentive for product companies like us to start
assembly facilities in SEZs which we want for our Cyberoam range of solutions.


2) The 2011 Union budget had provisions in decreasing
the surcharge tax limit on corporate tax to 5 percent from 7.5 percent. This
definitely helped Indian enterprises tremendously and we wish to see this
continued in the budget this year.


3) In addition, we want to see implementation of
long-pending GST so that there is no ambiguity in tax structure. This apart, we
would like to see implementation of DTC, IFRS, New Company Bill which can help
us consolidate our image as a global brand.


4) We are also making a bold call on various FDI
allowances like retail, insurance etc.


5) In the larger interest to reduce the fiscal deficit, I
recommend a definitive policy on the phase wise reduction in the  subsidy
for  diesel, LPG and fertilizers is desired. The reduction in fiscal
deficit in turn helps to lower inflation, interest rates and prevent
currency fluctuations in Forex.

6) It would be great if individual tax limit is raised
to Rs. 3 lakhs as that would go a long way in boosting economic activity. A
major long-term policy decision should be taken which can reduce the importance
of budget event every year.

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