IT firms to vie for tax dept project

The finance minister's proposal in the interim Budget to extend round-the-clock electronic filing of Customs documents from 9 to 23 Customs formations has opened up a market opportunity for the Indian IT companies in the domestic market.

According to government sources, this move would involve computerising all the Customs and excise offices and then linking all these centres together for centralised monitoring.

They also said this would be one of the largest such projects undertaken by the tax department and is part of the overall computerisation efforts of the department.

Market sources said that this move would open up a market possibility of about Rs 300 crore for the infotech companies.

Manufacturers Association of Information Technology (Mait) welcomed the announcement of the Union Government on the introduction of users-friendly tax administration measures including the self-assessment based customs clearance. It feels this move will give a boost to hardware manufacturing in India, which otherwise is hampered by procedural delays.

The government has also announced e-filing of excise returns and the adoption of 8 digit classification for purposes of excise duty clearance, harmonising the customs and excise classification systems.

According to Vinnie Mehta, executive director, Mait, "These moves will help in reducing the turn-around time in India to internationally acceptable levels, thereby providing a conducive environment to the hardware manufacturing industry."

According to Sunil Munjal, vice president, CII, "All these reforms will increase the competitiveness of Indian industry." According to him, "The fact that the government used even this limited instrument of the interim budget to announce policy and procedural reforms emphasizes its commitment to furthering India's competitiveness and economic growth."