(MENAFN- KNN India)
Union Budget 2023-24: Removal of 15% MAT tops Start-ups wish list
New Delhi, Jan 25 (KNN) To promote start-ups, the industry has urged the Union Finance Minister Nirmala Sitharaman to do away with the Minimum Alternative Tax (MAT) of 15 per cent applied on start-ups.
Opening up about the expectations of start-ups from the upcoming union budget, Ashish Jain, CEO, The Startup Board told KNN India in an exclusive interview that introduction of non-voting shares will help bring more investment into the start-ups, without founders losing control of their venture.
He suggested this because investors have started investing in the start-ups as it has started becoming a new asset class.
“They are interested in returns, instead of the controlling stake. Introduction of non-voting shares will help bring more investment into the start-up, without founders losing control of their venture. This is quite prevalent in the USA,” he added.
Jain explained that many start-up founders incorporate their company in Singapore, Dubai or other tax havens.
“These start-ups working in India for majority of their revenue, still are not called Indian start-up due to taxation policies. In the short period of 10 years, revenue from start-up have already reached USD 74 billion (IT industry in India is USD 327 billion worth), generating employment, creating IP from India for products for the world among other benefits,” he said.
He further suggested that make ESOPs table on sale of shares instead of taxability on allotment, as ESOPs in the start-up are difficult to be liquidated.
K Srinivas, Founder, SolarBull Energy LLP told KNN India that it has proposed the government to drop the GST on Solar Power Plants from 12 per cent to 5 per cent.
“Aatmanirbhar Bharat Rojgar Yojana (ABRY) scheme facilitates Start-ups and other MSME companies where the government has borne the Provident Fund for 2 years (both Employee portion & Employer portion) for all the new recruitments made up to March 31, 2023 needs to be continued for all new recruits,” he said as it will encourage MSMEs and Start-ups to recruit more employees.
Calling for separate
classification in GST for 'Water Purifiers”, Chandrasekaran J, Founder Director, Watsan Envirotech Private Limited has sought for a lesser GST of 5 per cent as against 18 per cent for Non-electricity-based water purifiers (gravity and UV based).
Start-up Founder of Zippytech Private Limited, Manoranjan Mishra has requested for the introduction of GST/MCA compliance holiday for 3 years or till certain revenue is generated.
“Also allow banks to open current accounts without GST for start-ups,” he told KNN India.
To ensure new technology is made available to everyone without discrimination, Sethuraman K, Founder and CEO of Wisdom Tech Solutions Private Limited said that there should be a specific impact fund to support those Edutech Start-ups who nurture students in the bottom of the pyramid, taking no cost from them.