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How Will The GST Affect Startups?
Published
7 years agoon
The Goods and Services Bill will be implemented from midnight today and will influence many industries from entertainment to corporations. The startup ecosystem will also be affected by this economic integration of the Indian economy. The biggest indirect tax reform in India since 1947 is expected to consolidate and streamline the process of indirect taxation in an attempt to make it easier and more effective.
Before the implementation of one of the biggest changes brought by the Modi Government let’s take a look at how this reform will shape the startup ecosystem.
1. Increased threshold for registration
As per the soon to be former tax laws, any business that makes a turnover of more than 5 Lakhs has to get Value Added Tax (VAT) registration and pay VAT. Similarly, any business with a turnover of more than 10 Lakhs is required to register with the state tax authorities and obtain a tax identification number. Under the new regime, the limits for registration will be raised to Rs. 10 Lakhs and Rs. 20 Lakhs respectively. Therefore startups at a nascent stage need not worry about registration and can concentrate on growth.
2. Level Taxation field
Under this new tax rule, like small and medium business enterprises, corporates will also be paying taxes on interstate transfer and movement. The GST bill will tax stock transfers as well thereby bringing parity between big corporate players and small companies. The turf war between the Centre and states due to differential tax regime will also be reduced since the GST Tax reform will reduce the multiplicity of taxes, thereby bringing down compliance costs. E commerce and online startups active in multiple states will face no complication in the movement of goods between states, as the GST is applicable all over India, all differential treatments and confusing compliance regimes will be removed.
3. Tax Credit and Simpler Taxation
Startups in the service industry need to pay service tax under the current tax laws. But the implementation of the GST will allow startups paying the service tax to set off the VAT paid on purchases with the service tax on their sales. This reform will offer a boon to service industry providing services as costs will be reduced and thereby increasing working capital to the already overburdened startup. Furthermore, startups dealing with both goods and services will have to pay one GST Tax instead of both VAT and service tax. The GST will also encompass the various tax compliances under Excise, VAT, CST, Service Tax etc., reducing the time spent on tax compliances.
4. Limitations
While the GST bill would reform the startup sector tremendously, it is also important to note the limitations and disadvantages that will come with the bill. For starters, e-commerce sector startups will not be able to avail the increased registration threshold. Manufacturing units will face the brunt end of the stick under the new laws. Any manufacturing unit with a turnover less than Rs. 1.50 crores were exempt from paying taxes in accordance with the current laws. However, according to estimates, the exemption limit can be brought down to Rs. 25 lakhs under the new rules, bringing a large number of SMEs under the tax net.
A lot can be speculated over the impending implementation of the biggest tax reform. One thing that can be assured is that taxation in India will be changed completely. To avoid further confusion, the Government of India has asked restaurants and business to close shop before midnight.
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Zomato Introduces ‘Order Scheduling’ Feature for Seamless Pre-Planned Deliveries!
Published
17 hours agoon
October 28, 2024Zomato has launched a new “Order Scheduling” feature, allowing users to pre-plan their food orders for precise delivery timing. This addition enables customers to schedule orders up to two days in advance, making it ideal for organizing office lunches, weekend gatherings, or even daily coffee routines.
Expanding in the E-Catering Industry
Currently available across 35,000+ restaurants in 30 cities, including major hubs like Delhi, Bengaluru, Mumbai, and Pune, the feature aims to enhance convenience and flexibility for Zomato users. The introduction of this feature aligns with Zomato’s strategy to improve user experience and cater to the growing demand for reliable food delivery services.
How It Works
With Order Scheduling, customers can set delivery times ranging from two hours to two days ahead. After selecting their items, they choose a delivery time at checkout. If their preferred time slot is unavailable, Zomato suggests an alternative. Users can also cancel scheduled orders up to three hours before the planned delivery time, providing added flexibility.
Benefits for Restaurant Partners
The Order Scheduling feature not only benefits customers but also supports restaurant partners by helping them manage capacity and balance order flow during slower hours. This can lead to steadier sales, as restaurants can better anticipate demand. Integration of the feature requires no additional training for restaurant staff, allowing for seamless adoption. Restaurant partners can also select which menu items are available for scheduled orders.
Built-In Safeguards
To ensure reliability, Zomato has implemented several safeguards:
- Only restaurants with strong records of timely preparation and high availability are eligible.
- Restaurants receive advance notifications for scheduled orders.
- They control which items are available for pre-order, reducing the chance of substitutions or shortages.
Market Context and Strategic Importance
The introduction of the Order Scheduling feature is part of Zomato’s broader strategy to differentiate itself in a competitive market where players like Swiggy are constantly innovating. By offering a service that caters to both individual users and businesses requiring precise delivery timing, Zomato enhances customer loyalty and attracts new users who value flexibility in their food ordering experience.
Customer Feedback
Initial responses from users have been positive, with many expressing excitement about the convenience of scheduling meals ahead of time. This feature is particularly appealing to corporate clients, families, and individuals who prefer planning their meals in advance.
Future Expansion Plans
Zomato plans to expand this feature beyond the initial 30 cities and may eventually offer it across all orders regardless of value. The company aims to continuously improve its service offerings based on customer feedback and operational capabilities.
Conclusion
Zomato’s launch of the Order Scheduling feature marks a significant advancement in its service offerings, enhancing the overall food delivery experience for users. By allowing customers to pre-plan their meals and providing reliable delivery options, Zomato is positioning itself as a leader in the evolving food tech landscape.
As this feature rolls out and gains traction among users, it will be interesting to see how it influences customer behavior and impacts Zomato’s market position relative to its competitors. The focus on convenience and reliability reflects changing consumer preferences in an increasingly busy world.
Latest News
Nvidia Becomes World’s Most Valuable Company, Reaching $3.53 Trillion Amid Surging AI Demand!
Published
19 hours agoon
October 28, 2024In a groundbreaking stock rally on Friday, Nvidia briefly surpassed Apple to become the world’s most valuable company, achieving a record market cap of $3.53 trillion before closing slightly lower at $3.47 trillion. Meanwhile, Apple finished the day with a market valuation of $3.52 trillion after a 0.4% gain, according to LSEG data.
Factors Behind Nvidia’s Rise
Nvidia’s remarkable rise can be attributed to the soaring demand for its AI chips, which are critical in powering the expansion of artificial intelligence across various industries. Originally known for its gaming processors, Nvidia’s pivot to AI has transformed it into a tech powerhouse. The company’s stock surged by around 18% in October alone, spurred in part by OpenAI’s recent $6.6 billion funding round and widespread investment in AI technologies.
Over the past year, Nvidia’s share price has skyrocketed by nearly 190%, positioning it as the clear market leader in the AI space. This demand was further underscored on Friday when Western Digital’s better-than-expected earnings highlighted the strength of the AI-driven data center market.
Challenges for Apple
Apple, typically a fixture at the top of the valuation hierarchy, faces headwinds as it contends with slowing demand for iPhones, particularly in China. In Q3, Apple experienced a 0.3% drop in iPhone sales, while competitor Huawei posted a remarkable 42% increase in sales. With Apple’s quarterly earnings report due this Thursday, analysts predict modest revenue growth of 5.55%, reaching $94.5 billion. In stark contrast, Nvidia is forecasted to report an impressive 82% year-over-year revenue increase, reaching $32.9 billion.
Implications for the Tech Sector
Nvidia’s performance serves as a positive signal for the broader tech sector and the U.S. stock market, as Nvidia, Apple, and Microsoft now collectively account for almost 20% of the S&P 500’s value. Amid record-high stock indices, enthusiasm for AI and potential Federal Reserve interest rate cuts are boosting investor confidence.
Trading Activity and Market Sentiment
With AI adoption spreading rapidly, Nvidia’s options rank among the most actively traded on the market, making it a focal point for investors according to Trade Alert. However, some analysts caution that the current hype surrounding AI could risk inflating company valuations beyond sustainable levels.
Future Outlook
Nvidia’s recent surge underscores its pivotal role in the AI landscape as demand for generative AI solutions continues to grow. The company is positioned to benefit from ongoing investments in AI infrastructure and applications across various sectors.
Competition and Market Dynamics
Despite its current dominance, Nvidia faces increasing competition as tech giants like Google and Microsoft develop their own AI chips and solutions. The evolving landscape may challenge Nvidia’s market share; however, its established reputation and technological advancements provide a strong foundation for future growth.
Conclusion
Nvidia’s brief ascendance to become the world’s most valuable company highlights the transformative impact of AI on technology valuations and market dynamics. As both Nvidia and Apple navigate their respective challenges and opportunities within this rapidly evolving sector, investor interest in AI technologies remains robust.
The ongoing developments in AI adoption will likely continue to shape not only Nvidia’s trajectory but also that of the broader tech industry in the coming years. As companies increasingly integrate AI into their operations, Nvidia’s leadership position will be critical in defining how these technologies evolve and are utilized across various applications.
Latest News
JioHotstar.com Takes a New Turn with UAE Siblings’ Charity Mission After Reliance Declines Delhi Developer’s Offer!
Published
21 hours agoon
October 28, 2024In an unexpected development, JioHotstar.com—originally owned by a Delhi-based app developer aiming to fund his Cambridge education—has found a new purpose. The domain is now home to a mission of charity, led by Dubai-based siblings Jainam and Jivika, who have transformed the website into a platform for their philanthropic journey, titled “Welcome to Our Journey of Seva.” Their mission focuses on helping underprivileged children gain access to education and encouraging them to dream big.
The Siblings’ Mission
Visitors to the domain are greeted by a heartfelt message from Jainam and Jivika:
“Hello! We are Jainam and Jivika – siblings from Dubai, UAE, on a mission to make a difference. Even though we’re just kids, we believe that age is only a number when it comes to spreading kindness and positivity. Our recent journey began during our summer holidays when we left our home in Dubai for 50 unforgettable days in India. We had a purpose: to connect with children from various backgrounds, share our love for learning, teach skills for studying and setting goals, and inspire them to dream big.”
This shift in purpose comes after the domain’s original owner, a Delhi tech enthusiast, bought JioHotstar.com speculatively, hoping to capitalize on a potential partnership between Reliance Industries and Disney+ Hotstar. Drawing on Reliance’s history of rebranding—like Saavn to JioSaavn—the developer envisioned a similar “JioHotstar” rebrand. His ambitious goal was to sell the domain to Reliance in exchange for funding his Cambridge studies, estimated at around ₹1 crore.
The Developer’s Initial Proposal
To pursue this goal, he posted a letter on the site proposing the sale to Reliance. However, the tech giant rejected his offer, warning of legal consequences for trademark infringement. The developer quickly removed his proposal and took to social media with a humorous note about his parents’ worries over the growing media attention:
“My parents read the news and they are worried, actually super super worried. Itna bhi viral nhi hona tha yaar. Shayad legal battle phir bhi handle ho jaye, bhai saab maa baap ka samjhana is so difficult. Good Kalesh today,” he shared, lightening the situation.
A New Purpose for JioHotstar.com
With the developer stepping back, UAE siblings Jainam and Jivika have now given JioHotstar.com a fresh purpose. Their story of kindness has turned the domain from a tech-driven dream into a platform of service and inspiration, reshaping its journey into one of community impact and compassion.
Charitable Initiatives
The siblings plan to use the platform not only to share their experiences but also to inspire others. They aim to raise awareness about educational disparities faced by underprivileged children and encourage donations or support for their initiatives.
“Throughout our journey, we were met with inspiring moments and new friendships. We taught kids not only about studying but also about having the courage to set ambitious goals,” they wrote on their website.
Community Engagement
The change in ownership has sparked interest across social media platforms, with many users expressing admiration for Jainam and Jivika’s mission. Their approach highlights how digital platforms can be repurposed for positive social impact rather than mere commercial gain.
Future Aspirations
The siblings have indicated that they will keep the domain open for future sale to anyone interested in continuing this positive mission. They also plan to share videos documenting their charitable activities and challenges they undertake as part of their journey.
Conclusion
The transformation of JioHotstar.com from a speculative tech venture into a platform dedicated to charity represents an inspiring turn of events. Jainam and Jivika’s commitment to empowering underprivileged children through education showcases how young individuals can make meaningful contributions to society.
As this story unfolds, it serves as a reminder of the potential for digital spaces to foster community engagement and promote positive change in the world. The journey of these siblings illustrates that even small actions can lead to significant impacts when driven by passion and purpose.
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