The software and related services sector has a multiplier effect on the Indian economy with every one-rupee input resulting in a 100 per cent return, a study by rating agency Crisil Ltd said on Tuesday.
Every rupee spent by the IT-ITES sector translates into a total output of Rs 2 in the economy," the study done for software industry body NASSCOM said.
The study has analysed the expenditure on operating expenses, capital expenditure and consumption spending by professionals in the sector.
For every job created in the sector, four are created in the rest of the economy, it said.
The software services sector had a lot of headroom for growth, it said, adding 'cost-competitiveness remains a key factor determining investment attractiveness'.
While wage inflation was likely to remain, operational efficiencies offered, 'significant scope for offsetting margin pressures', the study found.
At current levels a 1 percentage point rise in billing rate would translate into a 0.6 percentage point rise in net margins, while a 1 percentage point rise in employee utilisation would result in a 0.5 percentage point rise in net margins, it said.
Courtesy : Expressindia.com
IT has multiplier effect on economy
March 1, 2007, 8:50 amWhat's cheaper, What's dearer!
March 1, 2007, 8:49 am
As Finance Minister P Chidambaram unveiled the Union Budget for 2007-2008, here's a list of things that will now be affordable. Also presenting things on which you might feel some real pinch:
Food mixes, biscuits, mouth freshener, footwear, water purifiers and filters, umbrellas, and low value cement would become cheaper while cigarettes, beedis, aircraft for personal use and set top boxes will be costlier as a result of Budget proposals for 2007-08.
Announcing a series of changes, Finance Minister P Chidambaram once again focused on tobacco and tobacco products to raise resources by increasing taxes, while exempting all kind of food mixes from excise duties, saying he should no longer be accused for bias for Idly-Dosa mixes.
Imported pet food and umbrellas would become cheaper as a result of reduction in customs and excise duties, while beedis (Indian cigar) would become expensive with the minister raising the excise duties on beedis made with the aid of machines and without the aid of machines.
Courtesy : Expressindia.com
Food mixes, biscuits, mouth freshener, footwear, water purifiers and filters, umbrellas, and low value cement would become cheaper while cigarettes, beedis, aircraft for personal use and set top boxes will be costlier as a result of Budget proposals for 2007-08.
Announcing a series of changes, Finance Minister P Chidambaram once again focused on tobacco and tobacco products to raise resources by increasing taxes, while exempting all kind of food mixes from excise duties, saying he should no longer be accused for bias for Idly-Dosa mixes.
Imported pet food and umbrellas would become cheaper as a result of reduction in customs and excise duties, while beedis (Indian cigar) would become expensive with the minister raising the excise duties on beedis made with the aid of machines and without the aid of machines.
Courtesy : Expressindia.com
Tax payers unhappy, India Inc says 'no relief'
March 1, 2007, 8:46 am
Greatly disappointing personal income tax payers, Finance Minister P Chidambaram's Budget for 2007-08 proposed a marginal Rs 10,000 increase in threshold tax exemption limit, while foisting an additional one per cent education cess on them.
In the backdrop of rising prices and high inflation, tax-payers were expecting increase in exemption limit by Rs 30,000 to Rs 50,000. But the threshold limit now stands at Rs 1,10,000 against Rs 1,00,000 earlier.
The increase in exemption limit, which will provide a relief of Rs 1,000 to Rs 2,000, will be partly neutralised by increase in education cess from 2 per cent to 3 per cent.
This has to be paid not only on income tax but also on all products and services covered under excise, customs and service tax.
Finance Minister has also put additional burden on taxpayers investing in stock markets by raising dividend distribution tax from 12.5 per cent to 15 per cent.
The Budget proposes to increase the income tax exemption limit from Rs 1,00,000 to Rs 1,10,000. For women, the exemption limit has been raised from Rs 1,35,000 to Rs 1,45,000, and for senior citizens from Rs 1,85,000 to Rs 1,95,000
Unexcited India Inc
Indian industry expressed disappointment over Finance Minister P Chidambaram's Budget for 2007-08, raising concerns on lack of measures to increase productivity and for losing an opportunity to provide relief to the corporate sector.
"This budget is disappointing as there has been no steps announced to increase productivity in agriculture, electricity and other sectors, which are not producing up to their potential," R Sesashayee CII President said.
He pointed out since revenues from peak customs and excise were increasing, this could have been a time to reduce excise duty to 20 per cent, if not 15 per cent overall, which would have been in line with Kelkar Committee Report.
FICCI President Habil Khorakiwala said a wrong signal has gone to the corporate world, as the government has increased cess and dividend distribution tax.
"One does not understand how the multiple taxes should be charged. I think the feeling of the chamber is that the Finance Minister has lost an opportunity of providing relief to the corporate world," Khorakiwala said.
Couretesy : Expressindia.com
In the backdrop of rising prices and high inflation, tax-payers were expecting increase in exemption limit by Rs 30,000 to Rs 50,000. But the threshold limit now stands at Rs 1,10,000 against Rs 1,00,000 earlier.
The increase in exemption limit, which will provide a relief of Rs 1,000 to Rs 2,000, will be partly neutralised by increase in education cess from 2 per cent to 3 per cent.
This has to be paid not only on income tax but also on all products and services covered under excise, customs and service tax.
Finance Minister has also put additional burden on taxpayers investing in stock markets by raising dividend distribution tax from 12.5 per cent to 15 per cent.
The Budget proposes to increase the income tax exemption limit from Rs 1,00,000 to Rs 1,10,000. For women, the exemption limit has been raised from Rs 1,35,000 to Rs 1,45,000, and for senior citizens from Rs 1,85,000 to Rs 1,95,000
Unexcited India Inc
Indian industry expressed disappointment over Finance Minister P Chidambaram's Budget for 2007-08, raising concerns on lack of measures to increase productivity and for losing an opportunity to provide relief to the corporate sector.
"This budget is disappointing as there has been no steps announced to increase productivity in agriculture, electricity and other sectors, which are not producing up to their potential," R Sesashayee CII President said.
He pointed out since revenues from peak customs and excise were increasing, this could have been a time to reduce excise duty to 20 per cent, if not 15 per cent overall, which would have been in line with Kelkar Committee Report.
FICCI President Habil Khorakiwala said a wrong signal has gone to the corporate world, as the government has increased cess and dividend distribution tax.
"One does not understand how the multiple taxes should be charged. I think the feeling of the chamber is that the Finance Minister has lost an opportunity of providing relief to the corporate world," Khorakiwala said.
Couretesy : Expressindia.com
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