Post-Budget Reaction by Mr. Karan Mehrotra, Co-founder & CEO of Localbanya.com
1) Goods and Services Tax (GST) – We would’ve preferred implementation of GST sooner than 1st April 2016 to allow a consolidation in tax structures across states, goods and services utilized.
It would also allow for better financial governance by eliminating the need to customize finance structures in different states basis the prevalent VAT structures.
2) Service tax increase to 14% – With timeline for implementation of GST being 1st April 2016, the increase in service tax will impact our margins. This is not a welcome move.
3) Employee Provident Fund contribution by employees being optional – This is good news for our blue collar staff, as it allows for more cash in hand hence translating to better motivation.
4) Self Employment and Talent Utilisation (SETU) – The Techno-Financial, Incubation and Facilitation Programme will be an interesting development for us to follow. With an allocation of Rs 1000 crore we are keen to see how this would be implemented. The opportunity lies in improving our technology infrastructure with new businesses attempting to improve processes, platforms and boosting efficiency with technology.
5) Raising the Income Tax exemption to Rs 4.4 lakh would be a welcome development for the semi-skilled staff.
6) Streamlining FDI with composite caps is a good move, however we expected more clarity on FDI in multibrand retail.
