More than 100 large India based Software product companies including Zoho, Tally Solutions, and Quick Heal Technologies, have written to Union Minister of Electronics and IT Ravi Shankar Prasad requesting that the Government should wave Tax deducted at source (TDS) on local software products. According to the research performed by Nasscom, The Indian Software as a Service (SaaS) industry touched $3.5 billion in yearly revenue for 2020.
What is happening
Currently, Govt. collects Tax deducted at source(TDS) on local software products and Softex forms that assess the value of a product each time it would export. After implementing the Goods and Service Tax (GST), which is central to all sales and purchase data, TDS is redundant, especially for the software products industry.
Product Based companies requested the removal of TDS
iSPIRT – Which is a Software products industry lobby, and Building Technology Platforms, Policies, and Playbooks for Product Entrepreneurs, has requested the Government to remove TDS and Softex forms requirement for Indian Software Product companies.
Sudhir Singh, Fellow at iSPIRT, said last year when India announced a software product policy to promote local Indian product companies and build a robust ecosystem, the Software product industry expected reforms to promote this industry.
Suresh Sambandam, CEO of SaaS firm Kissflow, said that the mission is to transform India from IT services to an IT product destination to reach the $5 trillion GDP dream by 2025.
He added many product-based companies have their Product already priced. For Example, we generate invoices for $30. If it is serviced based It companies, it makes sense as they bring millions of dollars in one transaction however does not make sence for such low-value invoices.
Nakul Saxena, Director-Policy, iSPIRT said – The IT ministry should remove these hurdles around ease of doing business for the Indian software products industry.
What are the best Indian based Product Based companies
These are some of the best Indian based Product based companies:
Zoho Corporation Private Limited was founded in 1996 and currently global headquartered in Chennai. Zoho is an Indian software development company that focuses on web-based business tools. Zoho becomes popular due to its online office suite, Internet of things management platform, and a suite of IT management software.
Tally Solutions was founded in 1986 and famous for its enterprise resource planning software, used by more than 1.8 million customers. It is headquartered in Bengaluru, Karnataka, India.
Quick Heal Technologies Ltd, is an Indian Antivirus software and IT security services company, headquartered in Pune, India. The company was founded in 1993.
some other prominent companies include:
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