IT companies scramble for setting up STPís. - Views on News from Equitymaster

Helping You Build Wealth With Honest Research
Since 1996. Try Now

  • MyStocks


Login Failure
(Please do not use this option on a public machine)
  Sign Up | Forgot Password?  

IT companies scramble for setting up STPís.

Mar 31, 2000

Following the Finance Ministerís announcement in the recent budget to allow Information Technology (IT) companies setting up Software Technology Parks (STPís) before the 31st of March 2000, there has been a scramble among IT companies to apply for setting up such units as such units can avail the benefit of a ten year tax holiday. The number of applications filed ever since the announcement to date amount more than 1,500. This is more than the total number of applications filed so far since the inception of the scheme which amount to 1,300.

IT companies which were hitherto free from income tax on their export earnings are being brought under the net, with the recent announcement by the government to impose tax on 20% of exports progressively over the next five years till such income is fully taxable.

This move would have considerably affected the bottomline in the coming years as the bulk of their income is expected to be generated from overseas income.

One loophole is to set up units in Software Technology Parks, as the income derived from such units is totally tax free.

Equitymaster requests your view! Post a comment on "IT companies scramble for setting up STPís.". Click here!


More Views on News

Sorry! There are no related views on news for this company/sector.

Most Popular

How the 8-Year Cycle Can Help Identify Multibaggers (Fast Profits Daily)

Sep 11, 2020

This is how you can apply the greed and fear cycle in the market to pick stocks.

I Recommended this Stock over Page Industries because it's Relevant to Doubling Your Income (Profit Hunter)

Sep 7, 2020

Things are not often what they seem in the market and how you can take advantage of this.

The NASDAQ Whale Could Harm Your Portfolio (Fast Profits Daily)

Sep 7, 2020

The discovery of Softbank pushing up prices on the NASDAQ will cause volatility in the market. Stay alert!

This Could Be the Best September for Auto Stocks (Profit Hunter)

Sep 11, 2020

Here's why I think this month could be a great for auto stocks.


Covid-19 Proof
Multibagger Stocks

Covid19 Proof Multibaggers
Get this special report, authored by Equitymaster's top analysts now!
We will never sell or rent your email id.
Please read our Terms


Sep 18, 2020 (Close)