The government has not been able to provide clarity on the definition of software exports for over a year now and it is causing inconvenience to the industry, Infosys co-founder and Chief Mentor N R Narayana Murthy said on Sunday.
“It has been a year now since we requested clarification on the definition of software exports and for various reasons the officers have not been able to provide clarification, he said, adding that the situation is causing inconvenience to the software and services industry that has exports of over $70 billion.
“I hope that an extraordinary individual like Pranab Mukherjee will ensure that a quick clarification is provided on the definition of software exports," he added.
Last year, Parliament was informed that the Income Tax Department has slapped a demand of over Rs 450 crore on software giant Infosys Technologies for wrongfully claiming tax exemption on onshore services by declaring them as software exports.
Onshore software development is the practice wherein Indian companies send their software engineers on short assignments, typically 3-6 months, to companies based in Europe, the US, and other nations.
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