The revenue department, together with the DPIIT, is mulling more direct and indirect tax relaxations to startup firms to boost India’s entrepreneurial sector.
The revenue department, together with the DPIIT, is mulling more direct and indirect tax relaxations to startup firms to boost India’s entrepreneurial sector. The Department for Promotion of Industry and Internal Trade (DPIIT) will soon submit a comprehensive vision document for startups to the Cabinet, which has proposed a series of steps, Guruprasad Mohapatra, secretary, DPITT, said, according to a PTI report. Moreover, the department is also going to put draft ecommerce policy soon in the public domain to seek comments and suggestions. Stating that e-commerce is a fast emerging sector, Guruprasad Mohapatra added that the government is also looking to extend more funds to startups this year under the Fund of Funds scheme. The department has already provided over Rs 1,000 crore last year.
Other than tax benefits, DPIIT and revenue department are also trying to provide “marketing support to those startups who are into manufacturing by providing them space under the public procurement scheme of the central government,” Guruprasad Mohapatra said. He was addressing Rajasthan STRIDE virtual conclave.
Startup India Vision
Under its vision document for startups, elements such as increasing the Fund of Funds, seed money scheme, credit guarantee scheme, and making it mandatory for all departments to promote incubators and hand-hold startups will be in focus. “What we are trying to do is to make things simpler for them. We are now thinking to start a seed money kind of a concept for those startups who come from an ideation stage to a proof of concept stage, Guruprasad Mohapatra said. Since credit guarantee is a major problem faced by the startups to avail credit, the department is also looking to work on an initiative under which some credit guarantee to startups when they approach lending institutions for either working capital or capex requirements can be provided.
So far, the DPIIT alone has recognised over 2,000 startups and has taken several steps to strengthen the country’s startup ecosystem