The World Bank also complimented India for easing tax compliance on businesses due to the implementation of an online platform for the payment of the Employee Provident Fund as well as the introduction of administrative measures to ease income tax compliance.
So what did India do in the last financial year that caused such a massive change?
Setting up a business was made easier by merging the applications for a Permanent Account Number (PAN) and Tax Account Number (TAN) as well as improving the online platform for applications. Mumbai merged the applications for Value Added Tax (VAT) and Professional Tax (PT) which helped further.
Easier construction permits, by simplifying the procedure to obtain a building permit with an online system in Greater Mumbai and New Delhi.
Access to credit was strengthened by amending the rules on priority of secured creditors outside reorganisation proceedings and the new insolvency law that provides a time limit and clear grounds for relief to the automatic stay for secured creditors.
Protections for minority investors were strengthened with more remedies available in cases of prejudicial transactions between the transacting parties.
Easier Tax Payments by requiring Employees Provident Fund payments to be electronic, and introducing administrative measures making it easier to comply with corporate income tax rules.
Trade across state borders was made quicker by reducing the time taken to comply with import regulations at Nhava Sheva port. In Delhi and Mumbai, eliminating merchant overtime fees and an increase in electronic and mobile platforms compliance of both export and import regulations.
Enforcing contracts with the the introduction of the National Judicial Data Grid (NJDG) in Mumbai and Delhi made it easier to enforce contracts because local courts can now generate case management reports.
Resolving insolvency with the new insolvency and bankruptcy code that introduced a reorganisation procedure for corporate debtors and enabled continuation of the debtor’s business even during insolvency proceedings in Mumbai and Delhi.