Union Budget 2014: MAIT seeks implementation of GST

IT hardware industry body MAIT has come out with a recommendation document for the IT hardware industry for the upcoming Union Budget 2014. The budget is of paramount importance not only from a clear-mandate perspective where the Government can take decisive actions, but also the most anticipated policy thrust of the Narendra Modi Government setting expectations at the peak.

This direction document in the form of the budget will spell out India's growth story and a plausible budget would help the economy steer itself by overhauling reforms and regulatory agenda.

Commenting on the upcoming Budget, Amar Babu, president, MAIT said,"This budget marks the first litmus test propelling the development agenda; the past years have witnessed an economic downturn and a downturn of domestic growth. The Budget should address the issues curtailing investment sentiment and bring renewed optimism for sustained economic growth, conversely the government should quickly amend the policy paralysis with regards to the ease of doing business."

Anwar Shirpurwala, executive director, MAIT opines, "finance minister Arun Jaitley should drive reforms around the ten point agenda that PM Modi has eloquently articulated. Recognizing the multifaceted contribution of manufacturing and electronics on a war-footing basis, the government should prioritize reforms that can navigate the challenges the manufacturing and ICT industry face every day. It should give boost to local manufacturing, early implementation of goods and service tax and credible policies to attract investments."

MAIT seems to clarify that distributors are carrying out sale of pre-packaged software without having any rights to issue licenses and therefore, transactions shall not be treated as service liable to service tax.