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LEAN STARTUP MANAGEMENT

ASSIGNMENT - 4

BY:
JIYA GARG 19BCE0985
SAIMA SHAHNAWAZ 19BCE0384

DESCRIBE THE TAX SYSTEM IN INDIA

1. FLOW CHART OF TAX SYSTEM

2. DESCRIBE THE TAX SYSTEM FOR A STARTUP
Eligible start-ups can opt for and enjoy income tax exemption for any three
consecutive years out of ten years, post incorporation. The said tax relief is
subject to the fulfilment of the following conditions:

​ 1. The eligible start-up is incorporated between April 2016 and March

2022. The Finance Bill 2022 has proposed to extend the last date of
incorporation by one year to March 2023.
​ 2. Turnover should not exceed INR 100 crore in the year in which tax
exemption is claimed.
 ​ 3. It must hold a certificate of eligible business, from the
Inter-Ministerial Board of Certification (IMB).

It is pertinent to note that an eligible start-up can be a company or a limited

liability partnership. It should be engaged in the business relating to
innovation, development or improvement of products or processes or
services, or a scalable business model with a high potential of employment
generation or wealth creation.

3. Import and export policies

Export order processing:

Basic Export Procedures
1. Market Research and Setting Objectives of Distribution: Selecting

target markets, methods of exportation and channels, setting foreign

market objectives on pricing and terms

2. Trade Regulations:

○ Export regulations and requirements

○ Overseas import regulations and requirements

○ Patent, trademark and copyright

3. Making Contacts:

○ Investigations from interested overseas buyers

○ Checking buyer's background from ECIC and / or banks

4. Quotation and Terms:

○ Making offers and quotation for potential buyers

○ Costs, quotations and pro forma invoices, and terms of sale

5. Sales Contract:

Confirming the sales contract and terms of transaction such as

payment terms.

6. Contract Execution:

○ Producing or sourcing goods

○ Packing and labelling

○ Arranging shipment

○ Preparing exports documentation

○ Arranging insurance, if necessary

7. Customs Clearance

○ Arranging export declaration and applying for export licence

when necessary.

8. Getting paid: - Subject to the payment terms specified in the sales

contract, the exporter should present the required documents to the

relevant parties for payment

Import