Blogger Anindita ( check out her blog ..she has a dew fresh writing style) posted a comment asking my thoughts on Chidambaram's tax proposals related to venture capital funds in the new union budget. I feel VC is like any other business activity and should be taxed. In the US, they have a system of creating transparent entities for taxation purposes, which we don't yet have in India. One could argue that VCs should be given tax exemption because the industry is still in a nascent stage in India. In fact, a number of players in the industry seem to feel that way. So, there is a confusion here. The FM has listed software and hardware, but not Internet :-) Some people interpret internet ventures as software plays. Definitely, if there is a Software-As-Service (SaaS) venture out there, they could request the pass thru benefit and should get it. But what about B2C plays (Naukri, Bharat Matrimony, 99 Acres and dozens of other such ventures) that have attracted VC funds? If the VC fu...
"Like a tiny drop of dew, or a bubble floating in a stream..so, is all conditioned existence to be seen" - The Diamond Sutra