CBDT said `onsite` work at client locati
firms would be treated as deemed exports,
making them eligible for tax benefits.
NEW DELHI: The finance ministry has said software development at client locations and deployment of personnel abroad by India`s IT firms such as Infosys, Wipro, and TCS will continue to get tax exemptions, drawing cheer from the $100 billion sector.
The Central Board of Direct Taxes on Thursday said `onsite` work at client locations by software firms would be treated as deemed exports, making them eligible for tax benefits. It also said deployment of manpower abroad and transfer of a software unit from one special economic zone to another would not impact these concessions
"We hope that these clarifications will set the disputes to rest," CBDT chairperson Poonam Kishore Saxena told reporters.