Skip to main content

Budget 2018: Will rules be eased to make marketing operating expenditure?

The retail industry, particularly e-commerce, wants marketing spend to be classified as operating expenditure rather than capital expenditure


1515095047-3066

As Finance Minister Arun Jaitley prepares to present Union Budget 2018, the Narendra Modi-led NDA government’s last full Budget before going for the 2019 general elections, the retail sector wants him to consider reworking the income-tax rules to classify marketing spend as operating expenditure rather than capital expenditure.

With low customer loyalty as is seen in the retail sector, marketing should certainly be understood to be operating expenditure. Even physical retailers that offer end-of-season sales consider discounts as notional operating expenditure.

Among other key Budget expectations from Finance Minister Arun Jaitley is allowing foreign direct investment (FDI) in the country’s multi-brand e-commerce sector through the automatic route. At present, a lot of complicated structures are used by companies to get this to work in spirit.

The abolition of ‘Angel Tax’ and scrapping of income tax on angel investments are also expected from the Union Budget 2018-19. These should in no way be considered as income.

Also on the taxation front, it is expected that the finance minister would look at reworking the goods and services tax (GST) rates, simplifying the structures and the process for filing returns, and easing compliance and regulatory filings for start-ups. Besides, a relaxation in income tax on the employee stock ownership plan (esop) grants will go a long way in making the environment conducive for retail business in the country.

The author is co-founder of Fynd, an O2O (Offline-to-online) e-commerce platform.

Click here : Budget 2018

Labels:

Comments

Post a Comment

Popular posts from this blog

Best Unconventional Workout and Sporting Activities for Summer

In summers, depending upon conditions and circumstances one can incorporate both outdoor  and indoor activities in their training schedule.   Summer is the season of holidays, picnics, outings and beaches. With travel and binge eating proper workout becomes that much more essential in summers. But with heat and the sun outdoors, an individual has to balance his indoor and outdoor activities to get a fulfilling workout. In summers, depending upon conditions and circumstances one can incorporate both outdoor and indoor activities in their training schedule. Mentioned below are some of the best physical and sporting activities that one can use as a workout to stay fit in the summer season. Beach Sports - If in summers one is going to spend much time on beaches or at a beach destination then one may use beach sporting activities such as beach rugby, beach soccer, beach tennis and beach volleyball to stay fit. All of these sporting activities on sand provide a ...
Post a Comment
Read more

Crypto exchange Binance temporarily suspends payments from EU's key network

  Cryptocurrency exchange Binance will temporarily suspend euro bank deposits from one of Europe’s key payments networks, it said in an email sent to users (Reuters) -Cryptocurrency exchange Binance will temporarily suspend euro bank deposits from one of Europe’s key payments networks, it said in an email sent to users on Tuesday. The email said that from 8 a.m. universal coordinated time on Wednesday, customers would no longer be able to deposit funds through the Single Euro Payments Area, or SEPA, schemes. The move was due to “events beyond our control”, the exchange said in the email. “Any deposits attempted via SEPA in the meantime will be returned within 7 working days. SEPA withdrawals are unaffected by this suspension”, Binance said. The development was reported earlier by the Financial Times. The network, which is a European Union project that aims to harmonise euro payments across the region, allows consumers to send euros across three dozen countries. Binance typically ac...
Post a Comment
Read more

‘Farmers will get justice’, says member of SC panel on farm laws Ghanwat

  Included in the four-member committee set-up by the Supreme Court to hold talks with the farmers agitating over the new farm laws, Anil Ghanwat said that “protesting farmers will get justice” Included in the four-member committee set-up by the Supreme Court to hold talks with the farmers agitating over the new farm laws, Anil Ghanwat on Tuesday said that “protesting farmers will get justice.” The Supreme Court on January 12 stayed the implementation of three farm laws and tasked the committee of experts to listen to grievances of the farmers on the farm laws and the views of the government and submit its report to the court within two months. Anil Ghanwat, president of the Shetkari Sanghatana, a Maharashtra-based  farmer organisation  told ANI, “This movement should stop somewhere and a law should be made in the interest of farmers. First we need to listen to farmers, if they had some misconception about Minimum Support Price (MSP) and Agricultural Produce Market Commit...
Post a Comment
Read more