The National Association of Software and Service Companies has said that the IT industry was worried over the income tax notices sent to a number of technology companies like Wipro and HCL.

Kiran Karnik, President, Nasscom said, "The industry is worried over the issue. We are in discussion with the government to find a resolution amicably." Karnik was speaking on the sidelines of an IBM press event.

Some of the other information technology companies, which have been served notices by the income tax department, have also sought the support of the information technology ministry, headed by Arun Shourie. Wipro has been asked to cough-up close to Rs 260 crore (Rs 2.60 billion) by the I-T department.

The IT companies have said that the government should consider issuing a notification in the forthcoming budget to clarify the scope of the tax holiday on computer exports, they have said.

Wipro has already made a formal representation to the Central Board of Direct Taxes, but is also considering obtaining a stay on the tax notice from a court. A decision on whether to proceed with an appeal is expected to be taken only after a Wipro board meeting slated for this Friday.