CAduniya.com : CA India Blog

Indian IT firms would not be impacted by the tax reform proposal of US President Barak Obama, Infosys Technologies chairman and chief mentor N.R. Narayana Murthy told President Pratibha Devisinh Patil on Friday.

“Obama’s tax proposal will not impact Indian firms as they already pay taxes in the US. It is only American firms operating in India who would have to repatriate taxes on profit earned outside the US when it becomes a law,” Murthy told Patil at an interactive session at the Infosys campus.

The president, who is on a three-day visit to Karnataka since Thursday, paid a visit to the sprawling Infosys campus housing its corporate headquarters on the outskirts of this tech hub.

When the company’s top management made a power-point presentation on its global operations during the interactive session, Patil also asked Murthy how the Indian IT industry could cope with the pressures of global recession and lower technology spending.

Murthy replied that the industry could sustain the growth momentum by expanding into the domestic market and driving the growth rate with innovation and product development.

“Indian firms will have to safeguard their IPRs (intellectual property rights) to move up the next level of value chain and compete with their peers in a global market,” Murthy argued.

“The president was keen to know about our guiding spirit and principles that drive Infosys’ growth in the global market,” Murthy told reporters later. President Patil planted a sapling in the Infosys campus and went on a buggy ride to see for herself the company’s state-of-the art facilities.

Beating the slowdown, chartered accountants (CAs) have bagged jobs with top-notch companies in the latest campus placement drive, which has also seen more newly qualified professionals get jobs.

State-run companies, especially from the financial services sector, have emerged as the biggest recruiters in the current round of hiring.

Four newly-qualified members of the Institute of Chartered Accountants
of India (ICAI), the apex body governing the profession, have been offered Rs 23 lakh each for international posting by the Tolaram group, a Singapore-based private company, compared with last year’s highest salary of Rs 21 lakh.

“When institutions of international repute are finding it hard to attract companies to their institutes to place their handful of students, the ICAI has proved itself to be an important destination to recruit finance, audit and compliance executives,” said ICAI President Uttam Prakash Agarwal.

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