India: expert committee on IT sector and safe harbor rules formedAugust 6, 2012
The Indian Government, via a press release dated 30 July 2012, has announced the formation of an expert committee to review the taxation of R&D centers and the IT sector.
The committee will also engage in consultations with stakeholders and related government departments to finalize the safe harbor provisions announced in the Budget 2009–10.
The terms of reference of the expert committee will be to:
- Examine issues and finalize the approach to taxation of the development centers such as IT software, IT hardware, pharmaceutical R&D, other automobile R&D and scientific R&D (expected by 31 August 2012)
- Finalize the safe harbor provisions individually, sector by sector (expected by 31 December 2012 for all sectors)
- Examine issues relating to taxation of the IT sector and suggest any clarifications that may be required (expected by 31 August 2012)
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