Industry feels Obama's new tax proposal won't affect IT & BPO sector
Indian IT industry has played down the impact of US President Barack Obama's proposal to disallow tax sops to firms outsourcing US business to India. India's top Industry chamber CII said on Tuesday that as the US is going through a deep recession, the steps taken to rewrite their tax code is understandable.
Nasscom, which represents the software and BPO industry employing 2.2 million people, said Obama's proposal to disallow tax deduction on their outsourcing expenses will have a marginal impact on India.
Infosys, the country's second largest software exporter, has said the new US tax proposals were meant to plug corporate tax loopholes in US multinational corporations and crackdown on their overseas tax havens.
However, other two industry chambers - FICCI and Assocham were more forthcoming in their disapproval of the American policies describing them as retrograde and protectionist.
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