Nasscom Seeks Reduction For Expertise Startups For Enterprise Continuity

Tech companies and startup business physique Nasscom has sought rapid reduction from the federal government to make sure enterprise continuity for startups amid the nationwide lock-down. The Union authorities introduced a 21-day lockdown starting March 24 to include the unfold of coronavirus or COVID-19.

Nasscom has requested the federal government to help the expertise product startups with a slew of measures starting from extension of tax fee deadline to non permanent refund of GST collected as mortgage.

“The Covid 19 pandemic has brought on excessive stress on start-ups placing their continuity in danger. They want to governments to offer help and reduction,” mentioned Nasscom in a press release.

A few of the vital measures demanded from the federal government to assist the startups embrace a rental subsidy for workspaces utilized by startups that are regulated/owned/managed by authorities businesses; blanket suspension of all deadlines together with tax fee deadlines and submitting deadlines till at the very least 4 weeks put up lifting of all metropolis lockdown. The business physique mentioned that the pandemic has created a major liquidity crunch for the sector and to make sure well timed fee of salaries to workers, the banks might voluntarily present for an overdraft facility or interest-free and fairness convertible funding to startups.

Nasscom has demanded a one-time provident fund opt-out possibility for workers. “The Authorities can contemplate offering an choice to the workers for a onetime PF opt-out possibility for the subsequent monetary yr 2020-21. In such a case, each the worker and employer’s contributions in the direction of the PF could also be transferred on to the worker. This may end in a rise within the take-home pay of the workers,” mentioned Nasscom within the illustration made to the federal government.

The business physique has additionally requested the federal government establishments and PSUs to be inspired to obtain make-in-India software program merchandise thereby serving to these startups meet at the very least 40% of the procurement want.

―Newpaper24