So it’s that time of year again, when resolutions are made for the New Year and the past year is reviewed and analyzed. The good, the bad and the ugly of 2015 is laid out bare and discussed.
We at BluSynergy India too worked on our 2015 performance. We split hairs between some of the “good” and some of the “bad” but what we all agreed on was,that in terms of payments and billing, for the country as a whole, we were definitely headed in the right direction!
This year, the Finance Ministry announced some very exciting incentives to encourage electronic transactions and reduce tax avoidance. (click here for the pdf from the Government in its entirety)
- Tax benefits could be provided to merchants for accepting electronic payments, e.g. an appropriate tax rebate can be extended to a merchant if at least say 50% value of the transactions is through electronic means. Alternatively, 1-2% reduction in value added tax could be considered on all electronic transactions by the merchants.
- Tax benefits in terms of income tax rebates to be considered to consumers for paying a certain proportion of their expenditure through electronic means.
- Mandating settling of high value transactions of, say, more than Rs. 1 lakh, only by electronic means.
- Currently, the telecom companies are levying an Unstructured Supplementary Service Data (USSD) charge of Rs. 1.50 per transaction for mobile banking/payments. To enhance adoption of mobile banking/payment, the USSD charges could be examined and rationalized.
What this means for our valued clients: Through the BluSynergy portal, all of your customers will have the opportunity to avail of the income tax rebates from the government, by paying their invoices electronically.
For you as a merchant facilitating electronic transactions will be eligible to receive the 1- 2 % reduction in Value Added Tax.
Hogaya na Win-Win?!