New Incentives for establishing call center in India

The recently announced EXIM Policy 2003 has something for both IT services and ITES companies in the country. The Government, this year, has attempted to remove some of the existing procedural deterrents and anomalies that have been standing in the way of software exporting organizations. The idea is de-regulate the software and ITES market even further and create a world class business environment, where the industry can gain momentum.

Some of the key changes the policy has brought into the software and ITES export environments are as follows:


Liberalized import of consumables, office and professional equipment, spares and furniture up to 10 percent of the average of the last three years' export earnings

Provided incentives for the diversification into software under the EPCG scheme. Existing manufacturer exporters will be allowed to fulfill export obligations arising out of import of Capital Goods under the EPCG Scheme for setting up of Software and ITES units through the export of manufactured goods of the same company

Accelerated the rate of depreciation to allow the hardware and software sectors to remain state-of-the-art

Allowed for the easy disposal of used PCs and hardware by removing procedural formalities governing the destruction of obsolete hardware

Created incentives for status holders who achieve high growth rate in their exports (25 percent or more and minimum export performance of Rs. 25 crore). It is proposed to give a duty free entitlement to them for import of capital goods, spares, office equipment and consumables

Simplified the procedures and formalities applicable to status holders amongst STP units. This should facilitate free movement of laptop, computer and other professional equipment and provide the required flexibility to the software professionals