Betting on BPOs ?

You bet  !

And here is some better news for the BPOs , which earn for India billions of dollars through “ Service Exports “ :

BPOs may be kept out of GST ambit  

Extract  :

India aims to keep business process outsourcing (BPO) service providers out of the ambit of the goods and services tax (GST), ensuring that they won’t face 18% tax. 

This will ensure that services provided by captive BPOS to their parents as well as by Indian back-office service providers are treated as exports and not face tax in the country. Intermediary services face 18% GST. 

Exports, as a principle, have to be tax neutral. Thus, all taxes used in the inputs are also reimbursed. Back-office services have enjoyed this benefit even under the erstwhile service tax regime. 

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In August last year , I sent following e-mail to our Policy Makers , where I wrote :

 [  Ready to be Ridiculed  ]

If engaged in “ Export of Intellectual Property “ ( BPO / KPO / LPO / Any PO that the rest of the World needs to be carried out remotely by our low cost graduates ) , then it would become possible to :

·     #    Put those unsold 4 lakh flats to a productive use

·     #    Increase “ Asset Utilization “ of property worth Rs 20 lakh*crore lying idle

·     #    Provide gainful employment to 120 lakh youth

·     #    Export “ services “ valued at $ 528 Billion / year

     ( Read :   Brain Inc  2.0  ) 

     https://myblogepage.blogspot.com/2017/08/brain-inc-20.html

#       Encourage owners of these 4 lakh flats to turn their flats into “ Knowledge Factories “

         ( exempted from “ Factory Act “ / “ Shop & Establishment Act “ / “ Minimum Wages Act “

          / “ PF Act “ / various Labour Laws…  etc  )

#       These “ Knowledge Factories “ to be governed by “ Human Enterprise Act “ ( to be

         drafted / legislated )

#       Owners need not pay any taxes such as “ Property Tax  / GST / Income Tax etc “

#       No questions to be asked as to the source of funds with which the flat was bought

        

#       Owners to “ Register “ as a Start Up as laid down in :

   “  Start Up Act –2015 “

    https://myblogepage.blogspot.com/2015/09/a-new-economic-order.html

Related Readings :

HowAbout Virtual Call Centers ?                            [  04 Oct 2016  ]

 

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20  Dec  2018

www.hemenparekh.in / blogs