10 February, 2016

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E-commerce Startups may get tax benefit in Budget for brand building & TDS

E-commerce Startups may get tax benefit in Budget for brand building & TDS

In order to encourage startups, especially e-commerce companies, the finance ministry may look at according beneficial tax treatment to their brand building expenses in the forthcoming budget.
According to sources, the government could allow startups and e-commerce companies to appropriate initial brand building expenses over several years for accounting benefits.
The government has decided to give host of tax incentives to encourage startups and some decisions are likely to be announced by Finance Minister Arun Jaitley in the 2016-17 Budget, to be presented on February 29.

The Finance Ministry may also look at providing relief to e-commerce companies with regard to withholding tax. Currently companies are required to withhold 10 per cent of the payment as tax.

ET

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