Latest Expert Exchange Queries

GST Demo Service software link: https://ims.go2customer.com
Username: demouser Password: demopass
Get your inventory and invoicing software GST Ready from Binarysoft info@binarysoft.com
sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
 
 
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing | GST - Goods and Services Tax
 
 
 
 
Popular Search: TDS :: Central Excise rule to resale the machines to a new company :: VAT Audit :: form 3cd :: due date for vat payment :: cpt :: list of goods taxed at 4% :: ACCOUNTING STANDARDS :: empanelment :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: articles on VAT and GST in India :: VAT RATES :: ACCOUNTING STANDARD :: TAX RATES - GOODS TAXABLE @ 4% :: ARTICLES ON INPUT TAX CREDIT IN VAT
 
 
Indirect Tax »
 What is a belated income tax return and what are its consequences
 Why rejig of financial year could upset your tax planning
 The threat of harsh penalty should not impede tax compliance
 What are the tax exemption limits for allowances, reimbursements paid to employees? Find out
 High-income taxpayers to get priority treatment and extra facilities
 GST input tax credit rules: How taxpayers will benefit from ITC
 More complications in filing income tax returns
 Guidelines for selection of cases for scrutiny during the financial-year 2017-2018
 CBDT asks Income Tax officials to pull their socks up as revenue collection not satisfactory
 Nearly 15 pct growth in direct tax collections for fiscal 2017-18
 Transformation of indirect taxation landscape

Indirect tax concessions needed to promote tech incubators
February, 27th 2013

Specific indirect tax concessions can promote entrepreneurship through creation of technology business incubators in PPP format. Start-up Village in Kochi is the ideal model, says Sherry Samuel Oommen, founder and senior partner, GyanMagnus Associates.

The Central Government may exempt an incubator from payment of customs duty on goods imported. Similarly, excise may be waived on goods supplied to incubator.

This would enable the incubator to procure assets freely and at reduced cost, Oommen told Business Line. In this manner, start-ups may access various facilities and services at reduced prices.

The incubator may be permitted to import goods on condition that these would actually be used, not sold or transferred. In case of violation, it can be asked to repay customs/excise duty calculated on transaction value or at a depreciated value of assets.

SERVICE TAX

Exemption or refund of service tax paid on service provided by third parties to incubators and incubatees is another. Currently, service tax exemption is available with respect to services provided by incubator to incubatee and by incubatee to third parties for up to Rs 50 lakh.

But there is no exemption with respect to service received by either the incubator or incubatee. This results in a situation where the service tax paid on such services becomes an avoidable cost. Hence, granting an exemption or providing a refund would complement the current exemption.

STATE DOMAIN

The State Government may zero-rate VAT on goods supplied to the incubator or incubatee. This would reduce start-up costs for an incubatee and bring down its substantial financial burden.

Exemption from payment of VAT on sale or leasing of goods by incubator to incubate may also be considered. Explaining, Oommen said the incubator procures a lot of goods which would be either sold or leased to incubatees. In the absence of this, the exemption provided in the context of the service tax provisions would not be very effective.

VAT WAIVER

The State Government may also waive payment of VAT on sale or licensing of software by incubatee to customers up to a turnover of Rs 50 lakh.

This would make customers/clients choose incubatees as there is saving of five per cent by choosing an incubatee company. This would also avoid the hassle of registration and compliance with VAT during the start-up phase.

Exemption from payment of stamp duty with respect to agreements with either incubator or incubate would cut costs, especially with respect to rent agreement.

The Government may also consider an exemption from payment of duty and surcharge on electricity charges, Oommen said.

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2017 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
E-catalogue online catalogue E-brochure online brochure online product catalogue online product catalogue e-catalogue Indi

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions