S Rajendran, chief marketing officer of Acer India, said: "The prices of all our PCs will rise by 2%. A Rs 25,000 PC will now cost an extra Rs 500." Even imported products, which will now attract an additional 2% countervailing duty, will become more expensive.
Sabyasachi Patra, executive director, MAIT, said the prices of services provided by hardware providers , such as maintenance, would go up. He said the hike in service tax could also increase the prices of personal software products.
Vinay Deshpande, CEO of Encore Software, maker of products like the Simputer, said the removal of Customs duty on LCD panels would have a marginally positive impact, but that would be largely negated by the higher excise duty and service tax.
For the much-vaunted IT services industry, the absence of any new tax-saving measures means the smaller companies among them will likely suffer a setback.
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