Pre-Budget Quote by Mr. Gunish Jain, CEO, BlueKaktus:
“TDS has been a point of concern across the industry. Currently, a TDS of 10% assumes profitability of 40% which is generally not the case for corporations. With a major chunk of capital being held back in the form of TDS, maintaining big cash flow becomes a challenge. Small and Mid-Sized Enterprises (SMEs) find it challenging to secure loans as most of their money is blocked by the government in the form of TDS. In my experience, the TDS needs to be trimmed down to 7.5% for all whereas for SMEs it should be further reduced to 2.5%.”
“In addition to TDS, the government should also revise the GST on software services to 12%. This will improve the adoption of technology in the industry and urge more companies to move along with the times and digitize.” He further adds, “Amongst exporters too, the cash flow issue persists when it comes to GST refund. The current process of collecting and then refunding leads to massive cash flow issues in the industry. I believe that the government should revise the existing GST refund timeline and devise a mechanism to automatically refund the money within 45 days of a filed request. Moreover, fixing a date on the refunds can help companies align their business objectives accordingly.”
