Just recovering from the Indian Budget 2007. The bad news :- commerical rentals come under service tax. This will increase cost of operation significantly (specially in a city like Mumbai where rentals are comparable to most expensive in the world).
And the addition of MAT to indian IT and STPI companies. This is going back on the promise to give STPI companies a Tax holiday till 2009. We will have to of course pass on this to our clients and partners.
And of course the increase of 1 % cess. Apart from these direct increase in taxes, there is an indirect increase in overall cost of operation because most other companies will pass on the increase in prices to consumers.
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