Industry body Nasscom that represents the Indian IT industry has sent a long list of demands to the government which it says is essential for its members to overcome the crisis precipitated by the coronavirus, as per a report in the Economic Times. The lockdown has meant that many companies may not receive their payments from customers across the world as this is a worldwide phenomenon. Two strong markets for the Indian IT companies, the US and Europe, are both the worst affected now with the number of people affected by the virus and the number of deaths reported spiralling out of control.
Now, Nasscom wants the following concessions from the government:
> For units operating in the Special Economic Zones, it wants the sunset clause to be extended by one year.
> If IT and ITES companies are incurring expenses due to the work from home arrangement, such expenses should be allowed as regular business expenses.
> IT companies should be allowed to set off past unutilised Minimum Alternative Tax (MAT) credit, even if companies opt to move to the lower tax regime of 22%.
> Government departments and public sector companies must release payments owed to small and medium sized companies offering mundane IT services within the next fortnight.
> Defer the requirement to deposit advance tax in the first quarter.
> Nasscom wants the government to absorb the rent payments of small and medium enterprises for three months.
> The industry body has also mooted a suggestion that the information technology companies be permitted to âbenchâ their surplus employees who will be paid certain minimum wages and they will be entitled to statutory dues only.
> A furlough scheme is also being suggested, where those employees currently idle can be rested for three months without any salary but their employment can remain secure.