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Startups Prepare for Legal Fight with IT Department

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Startups that have been ordered to pay tax despite valuations being marked down in recent funding rounds are challenging the demands, complaining that the move runs counter to the government’s campaign to encourage entrepreneurial spirit.

With startup fever having waned over the past year or so amid concerns over profitability and competition, valuations have declined sharply. Last month, the tax department challenged such reductions at about 100 startups and issued orders seeking 33% tax at the elevated levels that prevailed earlier. Some startups have moved the income-tax tribunal against the notices while others have approached their advisers and could seek legal recourse in the coming days. Read more 

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Sweekar S

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Website: http://blog.tonsetelecom.com/

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