The Hindu Business Line : Company secretaries seek tax sops to stay competitive

WITH the possible opening up of the services sector, company secretary professionals have pitched in for greater tax sops to remain competitive. "In this context, it is necessary to boost Indian professional services' market penetration abilities. Therefore, various income-tax concessions are a necessity," an Institute of Company Secretaries of India (ICSI) official said.

Seeking restoration of the 50 per cent deduction that was earlier available on export of professional services to the extent of convertible foreign currency brought in through such exports, the Institute sources told Business Line, "India will shortly be witnessing an opening up of the services sector. It will be an opportunity for Indian professionals such as company secretaries, chartered accountants, cost accountants and engineers to export professional services.

"Therefore, we need to launch a frontal attack in order to capture professional service markets in other parts of the world," the source said adding , "we possess an avalanche of professional and services talent and Mode 4 of the general agreement on trade in services (GATS) is likely to be the most popular for export of Indian professional services. One measure which can work as an incentive to the services sector would be restoration of Section 80-O of the Income-Tax Act."

It is further essential that the 100-per cent export oriented unit (EOU) concept be brought in the arena of professional services, they said. A 100 per cent EOU for company secretarial services and chartered accountant services may be created with relevant income-tax benefits, they said, adding that the benefits could be on the same lines as those given to software technology park units."

"This would enable such professionals to form partnerships or open proprietary EoUs with a thrust on the export market. No part of the services rendered by such EoUs be allowed for the domestic market," they said.

The Institute has submitted the above recommendations to the Finance Ministry in its pre-budget memorandum.

More Stories on : Budget | Income Tax | Company Law

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page