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Strategies & Market Trends : India Stocks -- Ignore unavailable to you. Want to Upgrade?

To: greenehugh who wrote (399)	3/11/2004 7:37:43 PM
From: Sam Citron	Respond to of 2517

India has slapped a 40% tax on software developers What does that mean? A corporate tax that applies only to one particular industry that it has heretofore been trying to encourage? Can you provide a link as documentation?

To: greenehugh who wrote (399)	3/11/2004 11:02:05 PM
From: Julius Wong	Respond to of 2517

Indian IT firms get US tax blues K.YATISH RAJAWAT MUMBAI: The California government's move to tax Infosys in the US has all Indian IT companies worried. California's tax code requires corporations to pay taxes on a worldwide basis. However, the code also has a provision which permits corporations to pay taxes only on the profits earned from operations within the state of California economictimes.indiatimes.com

To: greenehugh who wrote (399)	3/12/2004 12:10:42 AM
From: Sam Citron	Respond to of 2517

India has slapped a 40% tax on software developers Now that Julius has pointed out the recent decision by California's Franchise Tax Board to try to tax what seem to be all profit by Infosys on either its CA or US operations (not sure which), I am doubly confused by your post suggesting an Indian, not a CA, tax. India would be seeking to actively encourage such an important source of foreign exchange and Indian jobs, not discourage it with a selective 40% tax. I think you may be mistakenly referring to the CA tax decision Julius has just cited, which is likely to be appealed by Infosys. What is certain, however, is that the result of any overreaching by FTB will be the loss of even more jobs in CA as INFY probably shifts jobs and HQ to Canada. This protectionism always ends up with people shooting themselves in the foot. JMO, Sam