Crystal IT Park Indore IT ccompanies in Indore

1. Reviving
Crystal IT Park
Indore

2. What?
 Crystal IT Park with 2 constructed
buildings with built up area of 5.5 lakh sq
ft
 and about 16 acres of vacant land
 for a total consideration of Rs 100 crores
(payable in 3 years)
 Another building of 5.5 lakh sq ft needed

3. Why?
 For IT and diamond processing
companies to become eligible for tax
exemptions for next 10 years
 It is within city limits
 Available at a very attractive cost

4. Is there a real need?
 and hence a real business
opportunity?

5. Are we sure that March 2011 is the
end of tax exemption of STPI units?
◦ 2009 was the deadline, it got extended in
last 2 budgets for 1 year each – this
demonstrates that the government is not
willing to extend it for multiple years. If
you read the words FM said – to let IT
industry tide over current economic
slowdown the sunset clause is extended
another year till 2011.
◦ That says it all, this extension should be
end of it

6. Are we sure that March 2011 is the
end of tax exemption of STPI units?
◦ Hike in MAT from 10 to 15% - which
effectively becomes 17% post
surcharges, this means that the intention
is very clear. Government already started
collecting tax from Apr 2009 onwards
when it included STPI units under MAT
ambit
◦ Government is losing as much as 15000
Crores, because of STPI exemptions
◦ Industry leaders like Narayana Murthy are
against extending any such tax
exemptions

7. Assuming the exemptions are
given for SME sector, will they
need SEZ?
◦ Even in least likely case of STPI extension
for SME sector, it will not continue for 10
years

8. MAT
◦ MAT is applicable to STPI units. Tax outgo
is certainly there, it cannot be avoided
◦ Even though it is a credit, it is money
gone which will never be recovered. We
can get its credit only if the tax liability is
more than the applicable MAT in future
years. Remember it is Minimum Alternate
Tax – Government wants to recover as
much as possible

9. Budget - 2010
◦ Most of the SMEs will want to wait for next
year’s budget to see if there is any more
extension
◦ The likelihood of any extension is zero,
 There is a already 2 extension made
 Each year MAT has been slapped to recover
the tax lost due to STPI exemptions
 10% last year
 Increased to 15% this year

10. Budget - 2010
 No change in government since this is quite a
stable one
 No change in finance minister
 IT Industry is quite stable and has grown many
folds in 11 years of exemptions
 Government wants to minimize the ever
increasing fiscal deficit

11. How?
 Form a consortium which will be
positioned as one committed big buyer
to a potential co-developer in the
project
 Any co-developer will find a pre-
purchase promise quite attractive
 In return the consortium can negotiate
a better deal for the space it needs

12. When?
 Acquisition should be done by the end
of 2009
 Finishing to be done in next 6 months
 By December 2010 offices should
start operating from the premises

13. Why us?
◦ To meet our own needs
◦ To highlight Indore as preferred IT
destination in Central India
◦ We can’t wait for government to come up
with a solution, we solve it for the
government

14. Let us finish it!

15. And turn dream into reality!