The Angel Tax and e-commerce policy have been two contentious issues, which are troubling startups and entrepreneurs in the country. The current government that claimed to be working on the two has not been able to find a final solution to disrupting regulations.
While the new FDI rule hasn’t been going well with e-commerce heavyweights including Amazon, Flipkart and many e-commerce companies backed by foreign investors, the fate of affected startups (via clause 56(2) (vii b) who received notices from CBDT are yet to be relieved.
Startups and investors despite many promises by the govt still continue to complain about getting notices and subjects to many restrictions.
However, all of this can change if the Congress party comes into power, according to AICC president Rahul Gandhi.
“We are going to get rid of Angel Tax when we come to power,” said Gandhi at the Manyata Tech Park while interacting with startup entrepreneurs in Bengaluru.
Startups have been in past complaint of being troubled the Angel Tax and supportive policy.
Currently, startups are levied around 30 per cent Angel Tax on investments made by external investors. Besides, they have to also prove that they are genuine startups, not shell firms.
As per the latest report, Startups have been burdened with the additional workload to furnish details including Registrar of Companies details of their registered office, its location by latitude and longitude, weather, and pictures of office (inside and outside).
Congress President also said that his party will change the e-commerce policy in favour of all the stakeholders eliminating a host of restrictions on e-commerce platforms and merchants doing business.
In the last month proposed draft e-commerce policy, the govt had increased binding restrictions on foreign investments in e-commerce in a bid to create a level playing field for startups. The guidelines outline the proposal for foreign internet firms to set up Indian companies & permanent registered offices in the country.
It further recommends govt consideration over reserving the right to require companies to disclose algorithms and source code.
Gandhi further held the current govt responsible for not promoting SMEs to create jobs. He also told entrepreneurs that the current form of the GST almost ruining the informal sector.