iWorld

9 incentives that digital start-ups need: IAMAI

http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/smartcrop_800x800/public/images/internet-images/2016/01/11/iworld%20broadband.jpg?itok=LDv0VV4b

MUMBAI: To recognise Prime Minister Narendra Modi’s vision of ‘Digital India,’ the industry body Internet and Mobile Association of India (IAMAI) has come up with specific fiscal and non-fiscal measures that India’s Internet scene requires. According to the association, the digital start-up ecosystem in India should be systematically encouraged by focusing on specific fiscal interventions.

 

The suggestions are as follows: 

 

1) Improve Investment Environment: India's entrepreneurs need early stage venture capital, which is why the domestic venture capital sector needs to develop further. In the US, the VC industry took off when their government allowed the large pension funds to put 5-10 per cent of their assets into VC firms.

 

2) Angel Tax: Angel Tax under Sec 56 (2) of the Income Tax Act has not been tailored to restrict start-up funding but it has put start-ups under the the Income Tax scanner, questioning the valuation by domestic individual investors. The criteria to qualify as an angel fund are stringent and need to be eased to support the start-up ecosystem in the country. The association suggests that there should be tax breaks and incentives for individuals supporting start-ups with capital.

 

3) Incentivize Internet services start-ups: Internet services based start-ups form the bulk of internet companies in India. Comprising aggregators, digital advertisers and online classifieds, bring in a lot of efficiency, and are the largest employment generators. They are either enabling businesses, or they are creating lot of employment in the country, resulting in many people are earning a lot of money than they should otherwise have.

 

4) Service Tax: Start-ups end up paying a huge amount over the first three years in way of service tax. Survival then takes a back seat and penalties just make a struggling start-up's life harder. The association recommends that for the first three years, the service tax could be waived off or incentivizes the start-ups, if they pay their service taxes on time.

 

5) Streamline taxation for e-commerce: Online marketplaces are changing the way businesses are done in India. Small players are setting up niche businesses in India and are attracting lot of investments in India. Online marketplaces bring in a lot of efficiency in the entire retail value chain from customer experience to payments and delivery.

 

6) Taxes on e-commerce transactions: The e-commerce marketplace industry is being subjected to onerous VAT demands from several states. They should be recognised as marketplaces and exempt from VAT demands in states. As market places they provide a service to online sellers and pay the service tax on that account. The State of Rajasthan for example treats e-commerce players as market places.

 

7) Boost FinTech Start-ups: FinTech plays a significant role in serving those underserved or not served by formal institutional mechanisms. They are also likely to play a significant role in various financial inclusion programmes of the government. Various forms of FinTech services such as pre-paid instruments, wallets and others create efficiency, transparency and wider reach in financial transaction.

 

8) P2P lending and crowd-funding need contribution from government: While some early inroads have been made in the P2P lending segment in the country, individual efforts have not translated into a policy from the government. The lack of clarity of rules and regulations has meant the industry is shooting in the dark. In the absence of dictated policy or scriptures, it is quite plausible that misguided individuals may fall prey to unscrupulous operators that may look to make a quick buck.

 

9) Easy KYC through Aadhar: This will allow innovators to build new services, which in turn will help bring more people under the ambit of financial services. Various forms of digital payments such as pre-paid instruments, wallets and others create efficiency, transparency and wider reach in financial transaction.

Latest Reads

http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/02/21/Ambani%20%282%29.jpg?itok=x4d-X6FX
Jio crosses 10-cr subs mark, offers prime membership for Rs 99

MUMBAI: Jio has crossed 100 million customer mark on 4G LTE all IP wireless network said Mukesh Ambani in 170 days which means 7 customers in every second every day.

iWorld Telecom
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/02/21/reddy-K%20Bapineedu_0.jpg?itok=uV6cGPO6
YuppTV-ETV partner exclusively for Telugu channels for US market

MUMBAI: Clearly this is going to be something that’s going to work in its favour. The Emerald Media funded-UdayReddy run (over the top/video on demand) OTT/VOD service YuppTV has signed an exclusive partnership with the Ramoji Rao-promoted K. Bapineedu-run ETV Network to stream  ETV Telugu’s...

iWorld Over The Top Services
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/02/21/Piracy-800x800.jpg?itok=tme6di5d
Google, MS agree to crack down on online content piracy site

NEW DELHI: A global war on content piracy, including in India, just got a leg up. For the first time, global tech giants Google and Microsoft have agreed to tighten up their search engines as part of a crackdown on content piracy websites illegally streaming events and films with the UK regulator...

iWorld eNews
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/02/20/telecom-goods.jpg?itok=OQxpo34O
Indian equipment makers keen to export telecom goods

NEW DELHI: The Indian Government is keen to partner with ASEAN countries in enabling Digital Connectivity between India and ASEAN region and also for enabling broadband within ASEAN countries.

iWorld Telecom
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/02/20/Ambani.jpg?itok=zwRYUZ-t
Jio juggernaut rolls on, wired segment wobbles

BENGALURU: In November 2016, the MukeshAmbani run ‘world’s biggest startup’ – Reliance Jio or simply Jio, became the largest private broadband internet services provider (ISP) in the country as per data revealed by the Telecom Regulatory Authority of India (TRAI) for month of November 2016 (Nov-16...

iWorld Telecom
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/02/17/digital%20%281%29.jpg?itok=w_OlOoxX
Digital, sports & events co GSC to make Aus, NZ buys, receives funds

Global Sports Commerce (GSC) and its affiliate Techfront International, a supplier of in-stadium LED screens, as well as integrated sponsorship and digital solutions for sports and media events, has received funding to support acquisitions of Screencorp in Australia and Oled & Carniegie in New...

iWorld eNews
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/02/17/Saivijay-Khanagav%20%281%29_0.jpg?itok=O_T8r_C6
CA Tech, iValue to drive digital transformation in India & Saarc region

CA Technologies has announced it has appointed iValue InfoSolutions as a Value Added Distributor (VAD) for India and the South Asian Association for Regional Cooperation (SAARC) region to grow the mid-market segment and address customers' needs in their digital transformation journey.

iWorld eNews
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/02/16/vitel%20%281%29_0.jpg?itok=5n1bay00
Vitel to develop IPTV business in India, hires Castle to raise Rs 50 cr

Vitel Global Communications has announced that it has engaged Castle Placement as its exclusive placement agent to raise US$ 7.5 million (Rs 50.29 crore) of capital.

iWorld IPTV
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/02/16/Mukesh-Ambani.jpg?itok=wQXmGcs7
'New oil' provider Jio open to partnerships

MUMBAI: Reliance Jio, which has crossed 100-million customer milestone after its launch in September 2016, has an open mind for partnerships at this stage. Jio hopes to put India among the top 10 countries in terms of broadband access, from the 155th position in 2015.

iWorld Telecom

Latest News

Load More

Sign up for our Newsletter

subscribe for latest stories