In a relief to IT companies, government has set aside a 10,000 crore rupee service tax demand notices on IT companies. In a statement, the Finance Ministry said, as a result, apprehensions about the negative effects on the software industry are without basis.

The government's move came a day after IT companies raised the issue of tax demand with Finance Minister Arun Jaitley during the pre-budget consultations.

The tax department had slapped service tax demand notices on about 200 information technology and IT-enabled services companies. It had asked them to return export benefits claimed between 2012 and 2016 on softwares provided to clients outside India. #casansaar (Source - NewsonAir)