BENGALURU: Startups are planning to ask the government to resolve a new set of issues in the upcoming year, including faster processing of Tax Deducted at Source (TDS) and Goods and Services Tax (GST) refunds, and taxing of employee stock ownership plans (Esops) only at the time of sale.This comes after startups successfully negotiated on the contentious angel tax issue and dual voting rights structure earlier this year.On GST, startups claim they do not receive refunds on time, locking up working capital.

These could be taken up ahead of the upcoming budget, according to the letter.Startups have also highlighted the issue of how Esops are taxed.

It should be taxed only at the time of realisation or sale, and not when they are vested, they said.

Venture capitalists, startups as well as groups like LocalCircles have already made several representations to the government on the issue.LocalCircles has also suggested ways to boost the sector’s growth.

The government should create a mechanism where departments and large corporations disclose invoices for products and services bought from startups or MSMEs, it suggested. | To read full story, visit https://startuparound.com/read/1577336613.5880144/Startups-make-a-wishlist-to-FinMin-for-next-year?ref=audio_experience