2012 End of World? Its 2011, software companies are more worried about.

March, 2011 is going to be the last month, software export units, like us are going to raise tax-exempted invoices! The end of STPI scheme further denotes a raise of approx 15-35% in income tax.

While some of us were hoping to move to SEZ, latest news says:

"According to the revised DTC draft, which will replace the Income Tax Act of 1961 after approval by Parliament, tax exemption will be provided only for existing SEZ units and not new units. "

So, it is End of STPI scheme, no SEZ to look for shelter.

Nasscom has requested government to retain SEZ for new units, and there are still chances "the government could extend STPI tax holiday via a notification before the expiration." But, the tension on most software exporters (and SEZ builders like Unitech, DLF, or Mahindra) are lightening up.

We just request to announce a clear decision rather than keeping a question mark on the future.