On Monday, Union Finance Minister Nirmala Sitharaman announced that she would investigate the bottlenecks in the IT products industry that force Indian SaaS companies to register outside of India.
A meeting between Sitharaman and CII and Ficci representatives gave her the opportunity to hear requests and feedback from various sectors. While noting that Tamil Nadu is well-known for its Software.
As a service offerings, entrepreneurs in the state’s technology sector urged India’s finance minister to remove a few roadblocks.
“There is a $1 trillion opportunity in the SaaS sector,” says Suresh Sambandam, founder of software company Kissflow, to the FM. A variety of barriers prevent Indian companies from being registered, causing the country to miss out on wealth creation.
Despite changes in business models, software is still taxed as a consulting service. I requested that the finance minister look into it. We must also phase out software export forms (softex), which are a legacy system for determining the value of software.
In conclusion, Sambandam stated that “the finance minister was open to the issues raised and requested that we send a detailed note to the ministry so that she could investigate them.”
M. N. Srinivasan, CEO of India Cements, requested that imports of coal and pet coke be temporarily tax-free.
‘The price of coal has skyrocketed. A tonne of coal that was previously worth $70 is now worth $170-180 per tonne. The import levy is currently Rs 400 per tonne, and the tax on pet coke is Rs 11. We have requested a reduction in levies in light of the steep increase,” he explained.
The Minerals Management and Development Regulation Act also hampered limestone capacity expansion (MMDR). “We have no objections to the MMDR Act,” he said, adding that “it (the levy and rules) should not obstruct the establishment of new cement capacities.” He also requested an invitation from the finance minister to pre-Budget meetings for the South Indian cement industry.
It was reported in the healthcare sector that representatives were seeking monetary incentives for the establishment of hospitals in tier 2 and 3 cities.
The government’s disinvestment plan, according to Sitharaman, is on track. She also stated that the Development Finance Institution, announced in the Budget, would be operational soon and that liquidity is no longer a major concern. The Bank-NBFC-MFI channel has been cleared, and a special push to get credit to those in need will begin on October 15, she said.
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