Now MCA after startups
More work for you localcircles. Seems like IT exemption or cool off that was given earlier in budget wont be enough as now MCA has decided to come after poor startups in India with focus on share premium.
The ministry of corporate affairs (MCA) became the latest government department after the income tax to question the premium paid by investors in startups after issuing notices to more than 2,000 startups that have raised money since 2013.
People with knowledge of the notice and MCA's thinking on the issue said the ministry has questioned the valuations at which these startups raised money and is focusing on companies whose valuations have fallen after the first round of fundraising. The notices were issued in the past 45 days with the ministry asking whether these startups have sought exemptions under any government scheme.
The ministry's missive comes two years after the income tax department raised similar questions and demanded that startups pay tax at the rate of 33% if their valuations fell after the first round. more
The ministry of corporate affairs (MCA) became the latest government department after the income tax to question the premium paid by investors in startups after issuing notices to more than 2,000 startups that have raised money since 2013.
People with knowledge of the notice and MCA's thinking on the issue said the ministry has questioned the valuations at which these startups raised money and is focusing on companies whose valuations have fallen after the first round of fundraising. The notices were issued in the past 45 days with the ministry asking whether these startups have sought exemptions under any government scheme.
The ministry's missive comes two years after the income tax department raised similar questions and demanded that startups pay tax at the rate of 33% if their valuations fell after the first round. more
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While I appreciate the sentiment, the process for NOT being called upon to justify the valuation was well documented in the Act and Rules. If the Entrepreneurs either: a. got bad advice b. chose to disregard it c. chose to take no advice at all We can't blame the Govt .... Ignorance of the law is no excuse for it NOT to be enforced. That said, even if dealt with suitably now, with the required documentation, the Notice is not as much of a threat as it is made out to be ... more
Nov 30
It is the duty of the Govt. to support as well as to verify and control - MCA is doing their duty. If a company gets money from a foreign investor who runs away - does the Govt has any responsibility or credibility problem, rating issue, trust problem by Foreign Investors etc ? Please learn more on Governance and please come out of negative attitude of just complaining. more
Nov 21
Let us not forget the opposition is against anything done to people of this country. after all all bureaucrats irrespective of whichever dept. they belong to are in their earlier control mind-set of the British and subsequent 6 decades of worse control mind-set . more
Nov 20
in our country we dont celebrate success. We will always try to bring down people who succeed. Crab mentality. more
Nov 20
Every Company which is started today is a Startup and they have to follow rules of the land. Only in case they have a unique Product or Service which has some Novelty, the GOI gives them such Recognition alongwith Tax Breaks etc. All Startups & it's Premium paying Investors must take such Clearances from the Authorities as is available & required by law, to get any Favoured Status. Sridhar, 98++% Startups in India are not really the Novelty Startups in the true sense anyways ! They are used for various dubious Business Transactions & Gains only ! So, if you are one and your Paperwork is correct, all Agencies like IT or MCA will treat them as such and won't trouble them beyond an inquiry anyways .. so why should they worry !!!! more
Nov 20
