When Modi government came into power, through our article, 4 Things NaMo can do to help entrepreneurship eco-system in India, we expressed the problems on which the government should work on. In that article, we mentioned about the issues and resultant failures faced by the start ups. We specifically mentioned about giving time bound tax exemption/ relaxation to new businesses.

The Union Government is planning to provide tax exemption to the start ups. With this step it can be felt that the government is listening to us and making an urge to resolve those problems.

In our other article, Are Indian Start-Ups Flying Outside India??, we were concerned about the start ups as they were flying outside India. They had to face many complexities in setting up their business. But now, with this encouraging step of tax exemption for specified period will hold the start ups in India.

The new proposal includes:

• Exemption from service tax and excise duty for startups that are registered under the department of science and technology and are certified as ‘bonafide’.
• ‘ Certified’ startups will have the ability to shutdown in a day, with submission of a single page form
• One stop registration service which will make them eligible for the government grants.

Service tax paid by the startup is the additional tax paid beside excise duty and income tax. With the exemption in service tax, startups can save both time and compliance cost. These savings must be utilized in the growth process of the business.

The process for startup in India is very haphazard and the compliances to be followed are very long and complex. The steps taken by the government will no doubt improve the procedural binding on the startups. But, still there are many hurdles for the startups which are yet to be crossed by them.

With the emerging scenario and the opportunities on the way are to be grabbed. It is the time for the Indian Entrepreneurs to take advantage of the pro youth and pro development government.