New Delhi: In a major relief to the country's Business Process Outsourcing sector, Government today (Sep 28, 2004) exempted it from tax by withdrawing the controversial CBDT circular issued in January.

The withdrawal of the circular follows representations from NASSCOM and industry that the controversial January 2nd circular imposing taxes on services outsourced from the country would strangulate the sunshine sector that earned over 10 billion dollar of foreign exchange annually.