Business Mantra News
- Income Tax authority has started questioning to CA, CS, tax consultant & tax expert who were under the process of valuation of startups.
- It is directly linked to the methodology adopted for the valuation of startups in 2014 and 2015.
- Tax officers says, valuation had been done by consultants / tax experts in year 2014 and 2015 are very high & they are also interested to know the causes / facts on which valuation were given.
- It is unfair value & excess amount received over & above the fair value should be considered as its income and not capital.
- On the other hand, tax experts says valuation were done on the basis of future projected revenue & expected growth of startups which were prevailing in 2014 not now in 2017.
- However, startups are unable to achieve the target & failed.