Pre-Budget expectation 2015-16 by Mr. Sitakanta Ray, Co-founder of MySmartPrice
Budget 2015 promises to be of great interest to the emerging sectors of India, especially the Indian e-commerce industry. Though the last year’s budget didn’t deliver on the hopes of bringing FDI into online retail, certain steps have been taken in the right direction to instill a sanguine attitude amongst the industry. The growth of Indian ecommerce and its ability to reach every nook and corner of India will largely be dependent on investments by Indian Post and Indian Railways in logistics infrastructure. This year, we hope greater emphasis is laid on helping fledgling startups grow. Relaxation of corporate tax for startups as well as provisions to increase venture capital investments from abroad will be great measures to help grow young startups.
A recent submission by IAMAI if taken forward by the finance ministry will prove to be a great value to the growth of digital entrepreneurship, primarily in the ecommerce sector. The submission proposes a Tax Holiday to Digital Startups similar to that received by Telecom Sector as well as a resolution to the VAT and State taxation issues currently being dealt by leading ecommerce stores. We anticipate that the concerned ministry takes cognizance of these regulations and more affirmative actions take place in the future pertaining to FDI. If this transpires, then e commerce in India will surely witness a Golden period of exponential growth.
