The Kerala regional council of Nasscom has commended Finance Minister Arun Jaitley for allocating ₹ 10,000 crore as risk capital for start-up companies.

VK Mathews, Chairman of the council, said the step would go a long way in identifying, nurturing and showcasing entrepreneurial talent amongst the youth.

He also said the launching of the ‘Digital India’ and ‘Start Up Village Entrepreneurship’ programmes will provide a facilitating ecosystem for aspiring IT entrepreneurs as it would give better access to broadband connectivity even in rural areas. Special emphasis on software product start-ups was also noteworthy.

Positive amendments

Mathews said the budget was a positive one. IT industry organisations had welcomed the proposed legislative amendments which will provide clarity on issues such as transfer pricing, retrospective taxation and advance pricing agreement scheme. The IT industry had been pushing for stability and predictability in the regulatory environment and longevity of policies. These amendments were a step in the right direction not only to usher in investor confidence but also to bring about a faster pace in the settlement of tax disputes.

The industry appreciated the setting up of an inter-ministerial, inter-departmental e-biz platform by the end of the calendar year, Mathews noted. This will ensure that various arms of the Government work in coordination for speedy completion of projects.

However, the industry bodies felt that the contentious issue of minimum alternate tax for units in Special Economic Zones could have been addressed.

“The IT industry has reasons to cheer although we expected more emphasis on export promotion. We see most proposals for the industry, especially those on taxation, as steps that will help see India as a business-friendly destination,” Mathews said.

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