Post-Budget Reaction by Mr. LC Singh, Vice Chairman & CEO, Nihilent
We are delighted with the Union Budget 2015 which emphasises on education, pensions, job creation, infrastructure and creating an entrepreneurial culture in the IT sector. The GST will put in place indirect tax system by next financial year while also bringing greater transparency and tax inflows. The other good news is the decision to reduce corporate tax over next four years. These are crucial moves to improve ease of doing business and we welcome them. The threshold for transfer pricing has been increased to Rs.20 crore. If this is coupled with simpler and clearer overall transfer pricing, investment will receive a boost and increase investor confidence. If the definitions of royalty are aligned with international practices, the country’s software sector will be at par with the global norms and standards.