The technology industry is marked by the need for speed, innovation and flexibility. New product development, faster time to market, decentralized workgroups and global supply chains are few of the key challenges the industry is facing in the face of increased competition.

To capitalize on new business opportunities and be a market leader in this highly competitive industry, you need robust capabilities to continuously adapt and streamline your business processes with new technology benchmarks ahead of your competition.

This sector, akin to the manufacturing sector sees the levy of excise, customs and the value added tax. In addition to these the levy of service tax, particularly on the communication sector is significant.

Central excise issues arise in case of manufacturers of hardware using components manufactured in India, However most organizations import and thus invite customs levies. With respect to computers (ranging from high end servers to laptops) certain countries like those of the Far East and South East Asia are distinctively exporting nations leading to significant customs interfaces both for the exporters and the importing nations.

Distribution of technology product invites country specific value added taxes. Owing to the specific nature of the distribution network, value added tax (VAT) administration in this sector encompasses some interesting features.

Read more on VAT aspects in the IT sector…

This sector is among the key representatives of the tertiary sector (the other major ones being financial services, engineering services, hospitality etc.) in terms of revenues generated. Thus managing service tax related issues assumes importance.