Millennium Post

Rs 1,000-crore fund for tech start-ups, entrepreneurs

"We are now seeing a growing interest in start ups.”  “Experimenting in cutting edge technologies, creating value out of ideas, initiatives and creating them into scalable enterprises and businesses is at the core of our strategies," he said while presenting the Budget for 2015-16 in the Lok Sabha. The minister added that the IT-ITeS sector has raked in revenues of $119 billion in 2014-15 and directly employs about 40 lakh people.

"For engaging our youth for inclusive and sustainable growth of the country, concerns such as more liberal system of raising global capital, incubation facilities in our centres of excellence, funding for seed capital and the ease of doing business need to be addressed to create a lakh jobs and hundreds of billions of dollars in value," Jaitley said. He added, “I am setting aside Rs 1,000 crore initially for this purpose.”

Bid to power our own electronic goods makers

From removing 4 per cent special additional duty (SAD) on PC components to imposing education cess on imported electronic products to spur its ambitious “Make in India” programme, government on Saturday announced a slew of measures to promote domestic manufacturing.

Presenting the Budget 2015-16 in Parliament, Finance Minister Arun Jaitley also said: "I propose to reduce the rates of basic customs duty on certain inputs, raw materials, intermediates and components (in all 22 items) so as to minimise the impact of duty inversion and reduce the manufacturing cost in several sectors."

The role of indirect taxes is very important in the context of promotion of domestic manufacturing and "Make in India", he said. Some other changes address the problem of CENVAT credit accumulation due to the levy of SAD, he added.

Royalty Tax on tech services cut

The government on Saturday proposed reducing the income tax on royalty fee paid for technical services, which analysts said will not only help start-ups and small firms but will also facilitate technology transfer in the country. Finance Minister Arun Jaitley in his Budget proposals reduced the income tax on royal fees paid for technical services from 25 per cent to 10 per cent.

“Today I see a lot of entrepreneurs running businesses, ventures and wanting to start new ones. They need latest technologies, therefore to facilitate technology in-flow in to the businesses at low cost. “I propose to reduce the rate of Income Tax on Royalty Fees for Technical Services from 25 per cent to 10 per cent,” he said presenting the Budget for 2015-16.”
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