Union Budget 2019 India: Small businesses are expecting more clarity in the digital Know-Your-Customer (KYC) process, technology infrastructure, and data security apart from e-KYC using Aadhar to be allowed for 'certain types' of organisations.
Union Budget 2019 India: Even as overall regulatory ease for doing business in India is on top of small businesses’ expectations from this year’s budget, the key asks for the community revolve around lesser compliance burden around taxes, clarity in the online KYC process, and awareness around digital payments.
The small business community with respect to ease of doing business has sought “all tax and ROC compliance should be done once a year in a specified time frame and as a single process. Even new compliance requirements should be done as part of this rather than doing as a one-off at different times during the year,” Sameer Aggarwal, Founder & CEO, RevFin told Financial Express Online, as this would reduce time and cost of using professional services.
Moreover, “process like TDS payments should be done through a direct debit process which should include all banks rather than a few banks only,” said Aggarwal. The government should continue the policy of reducing corporate taxes, lower the compliances required, reduced or zero rate of TDS, encourage venture capital investors by requiring less stringent paperwork, added Vinay Agrrawal, Founder & CEO, Hubbler.
Small businesses are also expecting more clarity in the digital Know-Your-Customer (KYC) process, technology infrastructure and data security apart from e-KYC using Aadhar to be allowed for ‘certain types’ of organisations. “This includes utilities (gas, electricity, internet, phone etc) and financial services (banks, NBFCs, insurance etc). Companies satisfying the criteria must be given full access to e-KYC services without the need to make large security deposits or the need to go through intermediaries,” said Aggarwal.
With respect to creating awareness for digital payments, the community expects a national education program through private partnerships by extending tax benefits to small businesses using taking digital payments. Also, the thrust for the adoption of advanced technologies in sectors such as logistics is highlighted.
“A direct focus on more advanced technology coupled with the upcoming 5G spectrum will give a growth impetus to the logistics sector in India. We look forward to a set of sector-specific policies for better handling of pertinent issues faced,” Abhishek Bansal, co-founder & CEO, Shadowfax told Financial Express Online.