The National Association of Software and Services Companies (Nasscom) on Wednesday submitted its pre-budget recommendations to the Finance Ministry and said that direct and indirect taxes, including MAT, should be exempted for startups to reduce compliance burden and cash outflows.
“Startups should be exempted from direct and indirect taxes, including MAT, a move that would reduce compliance burden and reduce cash outflows," Nasscom said.
Nasscom strongly recommended that companies may be allowed to carry forward losses even if there is change in ownership structure, if it for capital infusion in the entity, according to its release.
“Policy regulations like ease of compliance, reliance on self-certification instead of audits, tax exemptions for startups will allow entrepreneurs to devote their time, energy and resources to build upon their innovative ideas,” Nasscom head R Chandrashekhar said while presenting the recommendations.
“With the number of tech startups in India growing over 40 per cent over the last year, these startups can potentially develop innovative solutions to address the development needs of the country,” he added.