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Start- ups seeks easier access to tax benefits

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At a meeting with Commerce Minister Nirmala Sitharaman on Thursday, a number of start- up enterprises asked for easier access to tax benefits and more incubation facilities, among others. The minister later told journalists that issues such as government funding and online selling of prescription drugs were also discussed.
The Startup India plan, launched by Prime Minister Narendra Modi earlier this year, offers incentives such as no income tax on profit for three years and exemption from compliance with labour laws for this period, too, for eligible start- ups ( there are conditions).
Last week, the minister had announced that start- ups are now eligible for most such benefits after receiving a certificate from the department of industrial policy and promotion (DIPP), as opposed to the earlier process of vetting by an inter- ministerial board.
However, the relaxed norms will not be valid for availing of tax benefits, which alot of start- ups covet. DIPP has 782 applications from start- ups wanting these. Only 180 had the required documents, one of these being the incubators certificate qualifying them as an innovative business.
While 88 have been listed by DIPP as possible contenders to receive most benefits, so far only one has managed to get approval of the inter- ministerial board for tax benefits, among a potential list of three.
Business Standard New Delhi, 29th July  2016

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