National Association of Software and Service companies (NASSCOM) is working with the Department of Information Technology (DIT) on ways to support the small and medium enterprises to compete with larger companies, a top official said on Wednesday.

"We are working with DIT for alternate measures that could take care of the small and medium companies, and to come out with special schemes for them," NASSCOM President Som Mittal told reporters on the sidelines of the annual NASSCOM HR Summit in the Capital.

Stating that presently there were not many small companies as even if a small company needs to enter into a SEZ, they would be levied a Minimum Alternative Tax of 20 per cent, he said NASSCOM and DIT are planning to come out with more schemes to support them.

"We are actually telling them (the Small companies indirectly) that there are no incentives for you ... at the same time, we have to remember that about 10-15 years back, the large companies of today were small. We need to encourage the small companies," he said.

Asked about impact of Reserve Bank increasing the lending rates for 11th time, on the software industry, he said there could be some "indirect" impact on smaller companies.

"Small and medium enterprises who tend to borrow loans get impacted and in some cases, part of the funding comes from venture capitalists. There may not be direct impact," he said.