Startups

A Lot of Startups Reveal They Are Yet to Benefit from ‘Startup India’

Startups

As per a popular survey, a huge number of startups in the country believe that they have not sufficiently been assisted in any way from the government’s Startup India program. Hundreds of startups further went on to say that they had often received tax notices because of changes in valuations.

Now coming to the question on what impact the Startup India had on the startups, 80% of the totals subjects mentioned that their businesses had not improved in any way.

The government’s Startup India programme was launched just last year. And so far, it has only witnessed 5,350 startups officially recognised and registered under its banner. Of the 5,350 startups, only 74 have been able to avail the required tax benefits until now. Also, the total commitment from the Rs 10,000 crore fund-of-funds, which was set up with the Startup India Action Plan of the previous year, is at 605 INR crore to 17 AIFs. So far, only 75 startups have actually received fundings from the AIFs.

Ramesh Abhishek, who is the head of the Department of Industrial Policy and Promotion (DIPP), the nodal body for Startup India, mentioned  that it will take some years for disposals after the commitments of assets.

Other concerns include the equalisation levy and dual taxation on services from global companies.

“Startups have said that they use digital advertising services from global companies like Google, Facebook, Twitter and these companies bill Indian companies from their foreign offices due to which startups are forced to pay a 6% equalisation levy on top of the invoice value as their billing entity is not registered in India,” mentioned Yatish Rajawat, who is the chief strategy officer at LocalCircles

All the 2,788 subjects, on the question of reverse charge, stated that they support the exemption from GST (goods and services tax) on transactions for services procured from abroad. They want billing be made compulsory for the Indian offices of these worldwide establishments.

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