— Confederation of Indian Industry
Trade and industry associations talk about their expectations from the Union Budget 2010-11 which is likely to be presented on February 26.
Infrastructure projects, such
as roads, ports, airports,
inland waterways etc., are
eligible for income tax holiday.
In view of the strategic
importance of oil and gas facilities
such as LNG terminals and
pipelines, it is sought that such
projects also be given infrastructure
status and be made eligible
for 10-year income tax holiday.
IT incentives to IISPs
The 10-year tax holiday benefit
under Section 80-IA should be
reinstated for natural gas
pipelines including crude oil,
petroleum products and integral
storage facilities. Also, LNG
import and regasification projects
should be extended similar status.
In the context of cross-country
natural gas distribution network,
the issue of availability of
this benefit to city gas distribution
network remains unresolved.
A similar incentive
needs to be extended to CGD
network as well. In addition,
CGD infrastructure should also
be allowed to avail investmentlinked
tax incentives under Section
Further, infrastructure status
and thereby tax holiday under
Section 80-IA should also be provided
to the solar energy sector.
Tax incentives should be provided
to independent infrastructure
service providers so as to ensure
that the service provided by
them is attractive. The tax benefits
which are available to access
service providers should be
extended to IISPs.
The Income Tax Act under
Sec.80-IA (4) extends IT benefits
to the telecom operators who
are developing their own telecom
infrastructure. This benefit
should also be extended to the
service providers as well. Moreover,
this benefit is available to
developers of other infrastructure
like roads, ports, highways
and water supply projects.