"We will stop letting American companies that create jobs overseas take deductions on their expenses when they do not pay any American taxes on their profits," Barak Obama said at White House announcing the international tax policy reform.
By implementing the tax policy Barak Obama will be the greatest of all American President, however if you think on other side it will be the disaster for most of the companies in America. The sector belongs to ITES ( Information Technology Enable Services) will be traumatize by this policy. Most of the IT companies in US have been saving huge amount of money by outsourcing services from India for several years, and the new tax policy will completely vanish the scenario both in India and US. Any business depends upon the revenue upon cost ratio and that is going to disappear if the policy is implemented finally. However the news is pretty much good for the people in America but not for the corporate house.
The aftermath situation will not affect much in India, as India is favorite outsourcing place for many europian countries like UK, Germany, France and many more. The only change thats gonna happen in India are new learning centers for other than English language. People in India are very smart in learning new languages and pedagogy, which is very good for Indians. However it will take two long years to implement the policy in action. To rescue the situation Indian companies should start approaching other English and non-English European countries.
India will definitely affect by this policy but it will certainly find the way to tackle this trouble comfortably.
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