The union government of India is planning to gift some decent tax benefits to the startups in the country. The proposal consists of benefits in terms of exemption from excise and service tax for a limited interval of time defined by the government.
According to the article published in ET, Harkesh Mittal, secretary in the department of science and technology confirmed the proceedings, but didn’t share the details as, “The proposal is in its very early stages”.
Tax exemption proposal:
The proposal says, those startups registering under the domain of science and technology will be certified with bonafide accreditation along with exemption from both service and excise tax till they remain under the some defined threshold value. Currently the service tax is chargeable at 12.36% across all the corporate span. So we all can imagine the savings being offered.
According to the latest data issued by the World Bank, in terms of business ease, India stands at a very poor ranking of 132. Nasscom, the trade association of Indian Information Technology (IT) and Business Process Outsourcing (BPO) industry has also proposed three year moratorium to the government on quarterly regulatory filings and taxes, which can help boost budding startups to a larger scale easily.
If we recollect the government’s efforts in the past year, finance minister Arun Jaitley allocated INR 10,000 crore to the startup industry in last year’s union budget. So it would not be wrong to say that, Modi government seems to be doing their part for startups regularly. Startup growth was also highlighted in the investment sector last year, when total investment got past the whopping figure of $2.1 Billion, which is considered to be all time high!
With stats and the environment going all in favour of Indian startup ecosystem the possibilities of India going under greatest startup revolution are becoming strong day by day. The most positive part is that even the government has started supporting the trend, providing startups every possible opportunity, latest of which will be these tax exemptions.