New Tax Reform to Draw Indian Businesses Into Digital Economy
- Digital trails of business deals to capture more tax payers
- Small businesses prepare for ‘painful’ tax transition
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India’s biggest tax reform in history is also set to make its small-to-medium businesses more transparent.
On July 1, as India rolls out its landmark national sales tax, businesses that make less than 100 million rupees -- which the government refers to as micro, small and medium enterprises -- will all have to digitize. The firms, often accused of conducting business mostly in cash and evading taxes by under-reporting income, will for the first time have to report every transaction, creating an online trail for the tax office.