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Centre may tweak GST structure for startups, refunds to get easier
17-Aug-2019
Newindianexpress
GST,GST Structure For Startups
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After the decision to provide relief to start-ups on assessment of angel tax notices, the government is likely to relax procedures for tax assessment and might tweak the existing structure in the form of Goods and Services Tax (GST) so that tax refunds become easier for start-ups. “The government is committed to promote healthy atmosphere for start-ups. In last few months, we have taken many steps, eased out many procedures. Currently, start-ups are facing problem in getting refunds on tax deducted at source. We are looking at tweaking this system to make it easier for the start-ups to get refunds,” a senior Central Board of Direct Taxes (CBDT) official told this publication.
Many start-ups had flagged their concerns over getting refunds on tax deducted at source. They claimed that it impacts their whole cash flow and can severely impact their operations. The CBDT, in its notification on August 10, made it clear that start-ups and angel investors would not come under the purview of the dreaded tax.
The notification assured that explanation given by them to a tax notice in a limited scrutiny case would be summarily accepted without any questions asked by the taxman, thus giving them conducive environment to promote their growth. “Measures like these are welcome and are steps in the right direction for (i) making it easier for start-ups to do business; (ii) reducing unwarranted tax litigation and hardship; and (iii) giving a fillip to the start-up community. One hopes that the rigour of angel tax scrutiny is eased in case of entities other than recognised start-ups also which have a robust valuation back up,” said Ritu Shakhawat from Khaitan and Co. The government will be more lenient for start-ups, which are not approved by DPIIT and are getting recognised, the official said. Naveen Wadhwa, DGM, Taxmann said the board has issued a circular to give relief to start-ups which are undergoing assessment proceedings with respect to angel tax issue.
Source:newindianexpress
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