Information technology industry body Nasscom on Monday welcomed the Government’s decision to constitute a panel on tax related issues.
The Prime Minister, Dr Manmohan Singh, has constituted a Committee to Review Taxation of Development Centres and the IT Sector.
The Committee will engage in consultations with stakeholders and related government departments to finalise the Safe Harbour provisions announced in Budget 2010 sector-by-sector.
“This committee will help to address current issues being faced by the sector as well as focus on implementing the Safe Harbour provision,” Mr Som Mittal, President, Nasscom, said.
Nasscom has been working with the Ministry of Finance, Directorate of International Taxation and Central Board of Direct Taxes (CBDT) on issues related to transfer pricing and onsite services.
“We believe this announcement would allay concerns of industry, global corporations and investors,” he said.