FICCI has also called for extending the tax holiday benefit that infrastructure projects falling under build, operate and transfer (BOT) enjoy to include those under the build, own and operate (BOO) category. The development of infrastructure has to be the responsibility of both public and private sector. It should not discriminate between BOT and BOO since both the schemes are essential for development of infrastructure.

FICCI has suggested that deemed exports should be treated at par with physical exports and made eligible for tax benefits. At present, in terms of section 80-o,only 50 per cent deduction is permissible in respect of income by way of royalty, commission, fee or any similar payment received by the assessee from the foreign enterprises. Such income should be eligible for 100 per cent deduction rather than 50 per cent at present, the chamber added.FICCI has also called for tax holidays for new industrial undertakings. The country is still in the industrialisation process and has not reached a stage where incentives for setting up of new units should also be withdrawn. The discontinuation of the tax holiday benefit has resulted in slowing down the pace of industrialisation. All efforts must be made to accelerate the industrial growth and in this regard, it is suggested that the said tax holiday be revived, FICCI added. The chamber has called for some tax relief in respect of export profits. In case of total turnover of an assessee includes turnover from both domestic as well as export trade, the profits from the exports of goods should be determined as a proportion ofexport turnover to the total turnover of business excluding the fiscal levies like central excise duty and sales tax.

According to the chamber, where an Indian exporter enters into a barter agreement with the foreign importer and where the importer allows deferred payment facility for capital goods supplied to the India party and in turn the Indian exporter supplies the goods and the price of such exports, either in part or in full, is adjusted against the deferred payment installment and interest thereon, in such cases since there is no inflow of foreign exchange, the barter agreement should be brought within the purview of Section 80 HHC. The sale proceeds in convertible foreign exchange in respect of goods exported by the India party should be deemed to have been received in India, said FICCI.

The chamber said that the scope of section 80 HHC be widened to cover profits from exports of feature film, video film, TV software and music software by the film industry. It has been the usual trade practice toexport the film software on what is popularly known as lease basis, hire basis or royalty basis for a limited period and for limited territories, the chamber added.