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This is an archive article published on February 5, 2004

BPO taxation policy absolutely confusing: Narayana Murthy

Infosys chairman N.R. Narayana Murthy on Wednesday said Government8217;s announcement on BPO taxation was 8216;absolutely confusing8217; ...

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Infosys chairman N.R. Narayana Murthy on Wednesday said Government8217;s announcement on BPO taxation was 8216;absolutely confusing8217; and hoped that it would be corrected soon. 8216;8216;It8217;s not very very clear. I think this is absolutely confusing and I do not think this is the right way of creating a rule. I am sure it happened by mistake and I have no doubt at all that the concerned official will take immediate action to set it right8217;8217;, Murthy told newspersons on the sidelines of the ICAI8217;s annual function here. 8216;8216;There are different interpretations today on what is substantively core, ancillary, reasonable compensation for employees, all confusing,8217;8217; he said. 8216;8216;My own feeling is that whatever rules and regulations the government brings in it has to be very very clear to the practitioner and there should be no possibility of interpretation and obviously no possibility of discretion8217;8217;, he said. 8216;8216;Because that invariably leads to corruption. So it is very very important that whatever rules and regulations government wants to put in place8212;let it be unequivocally clear8217;8217;, Murthy said.

 

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