Budget 2016 is highly awaited where everyone is expecting policy level changes to promote growth. At the juncture where global growth is not so promising, everyone is eyeing on Indian Growth story and the retailer entrepreneurs have to leverage this situation. The eCommerce sector is moving at a break-neck speed today. The fact that firms, especially in the eCommerce sector, are grappling with pre-dated laws that do not support the functioning of the sector is why the eCommerce and start-up sector of the country has high expectations from the Union Budget 2016. Government has started great initiatives like “Make in India”, “Start-up India Initiative”, the budget has to support at monitory, infrastructure and policy level to realise these dreams.
Tax exemption increment for women employees, easy taxation across states key
Shailesh Jain, Co-founder, Mirraw.com expressed his pre-budget expectations to the tune of tax exemption increment for women employees and cutting down on interest rates on business loans. He said: “We are a fast growing eCommerce company and government should make this industry very flexible to operate in. They should bring in a number of laws like ‘No capital gains tax’ for first time entrepreneurs and ESOP holders, lower interest rates for business loans and easy long term repayments of turn around companies. Special package for companies’ revival under handloom and ethnic wear market. For the benefits of the employees the budget should have tax exemption limit increment for women employees earning upto Rs. 5 lakhs, and also reduce housing loan deduction limit to Rs. 3 lakhs on Interest paid.”
Anupam Tulsyan, Co-founder and MD of Peachmode.com believes that easy taxation across states should help alleviate ease of doing business. “As an eCommerce company we are expecting easy taxation across states. For instance, we cannot ship COD shipments to Kerala because of Kerala Govt. rules. Now on unstitched material in Bihar they are putting sales tax of above Rs 2000. That makes things difficult too. For eCommerce companies that sell across states, Delhi has introduced DVAT as a compulsion. That creates a lot of problems as well. Either GST comes soon or taxation improves,” he added.
Vipin Pathak, Co-founder and CEO of Care24 said that retail entrepreneurs should leverage this situation to encourage policy level changes to promote growth in the country. “Some of the expectation we have is further easy FDI investment norms, licensing and start-up support (tax, documentation, licensing, legal). Entrepreneurs should feel protected and supported on ground level to make actual difference,” he said.