Start up related issue

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5 Points Posted on 27 May 2021
If any one having experience in start up formation request you to share your feedback on my below query

Can a startup operate without having purchased it's own plant and machinery and taking the manufacturing facility on hire from other company considering section 80 IAC and startup qualifications condition
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On 27 May 2021 at 10:22 Report
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This discussion explores whether a startup can qualify for Section 80IAC benefits while hiring manufacturing facilities and plant/machinery from another company. The consensus leans towards eligibility, provided the startup itself is new and not formed by splitting an existing business. Hiring machinery from a dedicated leasing company is generally acceptable, but concerns were raised about hiring from an existing company in the same line of business. Ultimately, owning assets or generating immediate revenue doesn't appear to be a strict requirement for 80IAC qualification.

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Learner
2398 Points Posted on 27 May 2021

Start up company should not be created out of splitting up or re-construction. that means it should be a brand new one.

here your company can be new one but

if a company taking the facility of other company means it is using existing facility so the purpose not served that means to create extra production facilities govt might have introduced this section.

if you are hiring machinery from a machinery hiring business company then it is okay. if you are hiring from existing company which is in your line of business then it is not okay.

this is purely my understanding do not take it as conclusive as final answer may vary.

lets wait for other answers also.

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On 27 May 2021 at 12:05
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Profession Business
28246 Points Posted on 27 May 2021
START UP HAS SEPERATÈ REDTRICTION AND SEPERSTE SET OF PROCEDURES.
GOVT. HAS IN DETSILED LAID DOWN START UP REQUEST
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On 27 May 2021 at 17:05
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5 Points Posted on 27 May 2021
Sir we are not hiring from existing company.. the hiring company will give the machine on hirw to the start up company
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On 27 May 2021 at 17:09
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tax consultant
3306 Points Posted on 27 May 2021

your start is completely complying with the requirements of 80IAC. there is no such stipulation regarding owning plants and machines. you may hire it from any company(including related persons).

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On 27 May 2021 at 20:14
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5 Points Posted on 27 May 2021
Sir, just wanted to know are there any restrictions that startup has to own assets and generate revenue and production.

since, we would be using the assets of a company for manufacturing purpose would it not give impression that the same is restructuring
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On 27 May 2021 at 20:20

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