Indian IT, Media, Pharma, Telecom, Power Industry Budget Wishlist – II

We are covering to you on what the captains of the Indian industry have put forth in their budget-2010 wish list.You can read the wish list of Banking, Cement, Infratsructure & Construction, FMCG and Hotels here. In this Article we touch base on the wish list of other verticals.

Information Technology – Extension of Tax exemption beyond FY11, Rationalization of the current levy of 15%, Subsuming of VAT and service tax incidence to a single levy and Nation wide broadband rollout and focus on skill building.

Logistics – Continue with export incentives, Allow foreign airlines to take stake in Domestic airlines, Reduction in domestic rail freight charges, Reduce sales tax on ATF from 30% in some states to 4% across country and faster implementation of dedicated freight corridor with funding of Eastern Dedicated rail freight corridor.

Media – Broadcasters expect parity to be drawn between the print and electronic medium, rationalize MAT and Norms to be relaxed in cable distribution, print media, radio and news broadcasting.

Metals & Mining – Steel ministry/industry seeks hike in export duty to 20%. Mining companies against it. Custom duty on ferro alloys.

Non Banking Finance Companies – Tax exemption on interest paid on home loans to be increased to Rs 0.2mn from existing Rs. 0.15mn, Tax exemption on income by way of dividend, interest, and long-term capital gains from investments made in infrastructure projects, Allowing infrastructure financing companies to raise tax free bonds u/s 54, Increase the FDI limit to 49% from 26% presently.

Oil & Gas – Extend to 10 years out of 15 years, Exemption on input services on exploration, Allowing marketing companies to determine retail fuel prices, APM gas should be sold at market rates and Abolition of MAT on Exploration & Production companies.

Pharmaceuticals – Only one Big and Valid Demand – Increase in weighted average exemption from 150% of R&D spend to 200%.

Power – Interest on Infrastructure bonds to be included under 80C and more funds for the sector by Bonds.

Real Estate – Higher allocations for Rajiv Awas yojana, Indira Awaas yojana and Rural housing fund, Hike income tax exemption for interest payment on home loans to Rs 3lakh a year, Hike the limit of Rs 1 lakh on principal repayments of home loans to Rs 2 lakhs. Also, make this benefit a separate category as against part of Section 80C, Accord Infrastructure status to the affordable housing and integrated township projects and Extension of ECB deadline and should be allowed for wider range of projects.

Telecommunications – Announcement of steps to ensure early and orderly completion of these auctions and Extension of 100%
tax exemption benefits from 5 years to 10 years.