Budget 2014: Nasscom for Special Measures on Start-ups, Others

In its pre-budget proposal, IT-BPO industry body Nasscom has pitched for special measures to foster the eco-system for entrepreneurs, start-ups and innovation. "There are few important issues that we have flagged to the Finance Minister in the context of the budget..." Nasscom president R Chandrashekar told reporters in Bangalore. "We have identified more than dozen different areas which require attention like the funding, the taxation, the ease of forming, operating and closing the company." Nasscom has talked about training and entrepreneurship development, incubators and accelerators, the funding needs - especially the early stage seed funding-, the kind of infrastructure support in the academic institutions for research and commercialisation of such innovative ideas. "There are more than dozen such areas which we felt need to be supported with technology entrepreneurship mission. Our first and foremost point is that the technology entrepreneurship mission needs to be announced with an initial allocation of 500 crore to look at all these issues including regulatory simplification and bench marking of this to international practices," he added. The body has also said that for global companies which are operating in multiple geographies they should have the opportunity to consolidate their income globally and operate in a consolidated manner for taxation, which are good for the companies and good for the regulatory authorities as well, Mr Chandrashekar said. He said there are a number of issues like transfer pricing, applicability of royalty on software, the manner in which the transaction by units are subjected tax even though they are exempted under the SEZ (special economic zone) policy. "....so there are number of different areas which have led to lot of legal disputes. It has been a mounting set of disputes because of extreme interpretations and we feel all these issues need to be addressed." For larger companies, greater clarity, predictability and transparency in the regulations as well as in the enforcement, and for the smaller companies technology entrepreneurship mission, these are the two critical areas, he said. He also said, "We believe if the mission (India technology entrepreneurship mission) is introduced, then India being a large country has the potential to create 50,000 technology start-ups, generating an employment of 3 million and contributing $100 billion out of the 300 billion turnover that we expect this segment to reach by 2020." "This is only in terms of the direct turnover in the sector and not the multiplier effect in the other sectors which it would have, which is going to be in order of magnitude larger." Nasscom on Monday announced the commencement of the third phase of the 'NASSCOM 10,000 Startups' initiative by opening-up of applications from technology start-ups across the country. It also announced the launch of the NASSCOM Technology Startup Registry, which will act as a repository of India's technology start-ups in the web, mobile, e-commerce, SAAS (software as a service), marketplace space and will act as a discovery platform for investors, enterprises, media and government authorities.

Budget 2014: Nasscom for Special Measures on Start-ups, Others

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