StartUp News

Startups may get chance of tax benefit this year

As per experts, the government may allow startups and e-commerce companies to suitable brand building expenses for the various years for the accounting benefits. “The AMP expenses are very important for e-commerce companies to acquire new customers. A major part of this expenses is intangible and the government should allow identified category of AMP expenses to be capitalised,” KPMG (India) Partner Tax Amarjeet Singh said.

The prices diverted towards advertisement , marketing and sales promotion should be allowed to finance as an intangible asset  according to Rakesh Nangia & Co. “E-commerce sector is still grappling with outdated laws not flexible enough to adjust to its requirements. This sector unlike the conventional business models does not need to invest much in tangible asset like plant and machinery. Its assets are generally intangible in nature, like the value of its Brand,” Nangia said. Budget 2016-2017 which is to be presented on February 29, by Finance Minister Arun Jaitley describes that the government has planned to give host of tax incentives to motivate startups and some other decisions that would also be announced.

The finance minister is also looking forward to provide relief to e-commerce companies with regard to withholding taxes.

“Further, relaxation of withholding tax compliances by e-commerce companies, which are more in the nature of the start-ups, would enable them to focus more on the business with the reduced administrative burden resulting from relaxation,” Deloitte Haskins & Sells LLP Partner CA Gupta said.

Comments

The Author

Startup-Buzz Team

Startup-Buzz Team

Startup-buzz Team is a collaborative group of entrepreneurs, researchers, writers and experienced professionals. Tied up together to bring the latest Startup Buzz going around the globe.

Previous post

Indian banks are chasing the startup’s- but where’s the money?

Next post

Independent Consultants are required by 40 % startups