Nasscom seeks customs, excise waiver on PCs

The Nasscom on Monday asked the government to exempt computers from customs and excise duties. In its pre-Budget recommendation, the apex industry body said a reason for poor computer penetration was the high cost of computers compared to the per capita income.

The high import duties both on components and finished products was adding to the cost, it maintained.

The government had agreed in the Information Technology Agreement, that import duties for IT products would be reduced to 10 per cent in 2004 and made zero by 2005.

Nasscom has recommended advancing these targets by a year. It also sought 100 per cent annual depreciation on PCs.

Nasscom has asked the government to take proactive steps to resolve various issues related to direct and indirect taxes.

It asked the government to take a fresh look at issues like the recent decision on taxation of non residents, rising uncertainty and lack of transparency in the case of various incentives and exemptions being provided to IT software sector.

The industry body maintained that the government must look after supportive infrastructure such as improved telecommunication facilities, efficient airports, and ports, reliable power supply, efficient urban mass transport and good roads to retain India's global edge in the IT and infotech enabled services(ITES) sector.

It again demanded for simplification in tax laws and other paper works for the investments made by non-resident Indians and foreign nationals.

Nasscom called for the Special Economic Zone (SEZ) scheme for educational institutions , that would provide incentives and facilities to educational entities,in the line of incentives offered to units operating under the Software Technology Parks (STP) scheme.