“Government should form the co-funding schemes such as Early Stage Venture Funds, Seed funds etc. with the help of domestic investors. The government should also incentivize the Investors giving them additional benefits like exemption of Capital Gain. The government needs to provide better internet infrastructure and robust data protection systems in the upcoming Union Budget to create a healthy startup ecosystem in India. Under GST Regime, the supplier of goods or services is liable to pay GST. Startups and MSMEs are on one side facing Delayed / Non Payment from suppliers and on the other side they have to pay GST on the invoices issued. It is a fact that Startups / MSMEs have very limited liquidity in their business. It is, therefore, proposed to charge GST under Reverse Charge Mechanism (RCM) in case of Startups / MSMEs.”
— Sandeep Bisht, Advisor and National Spokesperson, Chamber of Startups, Industries and Entrepreneurs (India) Council
“This year, the Budget will probably be the most important one in decades. After the pandemic, the world has changed and from our perspective, the pandemic has put all focus on the importance of consumer technology. The consumer technology sector is expecting some measures from the Budget, given that it has a key role to play in the government. To increase the penetration of consumer technology in the country, I urge GOI to introduce an entry-level GST Slab for consumer technology i.e. 5%-10% and I believe this move will certainly leave an impact on the sales in India with the affordability aspect.”
— Ankit Sharma, Director, Airific Systems Pvt. Ltd
“India has close to 6.8 million Udyog Aadhar registered small and medium ventures today as per central government. According to the Finance Ministry, 50% of India’s exports that took place during the financial year 2019-20 were contributed by these MSMEs, which employs nearly 110 million people. SMEs play a vital role in employment generation, export market, and taxation in Indian industries and since the government is also an essential customer of all private entities, there must be a balance between both. Indian SMEs find it difficult to get financial help from banks due to a lack of collateral. Governments can look at assisting by creating specific schemes for MSMEs. In addition, they should create opportunities for MSMEs to understand the global market by letting them enter exports in order to expand and diversify. This will help in creating an encouraging environment for MSMEs and allow them to leverage respective professional services with ease for business growth. Timely input tax submission acts as a backbone of an efficient GST system, which is only possible if all loops and the chain carry out timely compliance. Government can also look at simplifying the GST laws so that it reduces compliance costs for MSMEs.”
— Rupesh Kumar Mishra, Co-Founder, PagarBook
- Long term Capital gain tax on shares chargeable @ 10% may be waived, as was prevalent earlier. This would boost the sentiment of the investors.
- Deduction u/s 80C may be increased from Rs 1.50 lakhs to Rs 2.5 lakhs to give relief to salaried and small businessmen.
- The deduction of interest on self-occupied property may be raised from Rs 2 lakhs to Rs 3.5 lacs. This would not only give relief to small income earners who want to own the house and also boost the real estate sector.
- Export benefits as were available u/s 80HHC may be restored so as to boost the export.
- State Government subsidy should be spared from the tax which granted by the State Government for setting up project in backward area but taken away by the Central Government by taxing it.
- Deduction on account of spending on Research and Development may be restored. This would boost the research in the country.
- SEZ units should continue to be granted tax benefits u/s 10AA so as to boost exports, which has ended on 30/03/2020.
— CMIA (Chamber of Marathwada Industries and Agriculture)
“Industrial output and investment have decelerated for quite some years now, though the exact magnitude of deceleration is debatable. In particular, capital goods sector has performed poorly thus we are expecting the budget to be focused on stimulating industrial demand like providing incentive for industrial exports and reducing the tax regime on the manufacturing sector particularly stressed sectors identified by Kamath committee.
Industrial growth has remained tepid since 2011-12. Official data show a significant turnaround since 2013-14, but this view is not widely shared. The IIP numbers released recently show a better picture of the reality, but they as yet nowhere near what they were prior to 2011-12. As consumer demand seems to be holding up better, the real constraint is one of demand for capital and intermediate goods. This will mainly come if public and infrastructure investment is stepped up thus expecting more flexible rules and conditions on ECB, FDI, FPB, Angel Investors, Seed capitals, etc.,
The new IIP monthly data show a clear adverse impact on the quarterly employment numbers, which are for the organized manufacturing. We recommend extension of the offset policy to other sectors as well, especially for capital and intermediate goods industries. Imports of such goods and foreign players’ access to domestic market need to be tied to technology transfer to domestic partners. Such a measure would reduce cost of 15 Off Set Policies (Defence Sector). Many countries follow such practices as a measure to promote domestic investment and production, technology acquisition, promotion of indigenous capabilities, and employment generation.”
–Writer & CA Noor-e-Mohammad, Kaynes Technology Pvt. Ltd