New Delhi, Dec 12 : The Finance Ministry today clarified that there is no negative effects of certain tax demands on the Software Industry and the apprehensions are without basis.
It was reported in certain sections of the media that tax officials had raised tax demand in respect of export of IT/IT enabled services provided to clients abroad and that this had been done on the basis of place of supply rules in respect of these services which were apparently provided in India and therefore were liable to be taxed.
In a clarificatyion issued by the Ministry, it is said that in a subsequent development, the Commissioner (Appeals) set aside the Orders of the lower adjudicating authority where refund was disallowed and has also upheld the orders where refund had been granted.
Thus, the apprehensions expressed in those sections of the Press about the negative effects on the software industry are without basis.
UNI
