ICT Adoption and VAT Registration among Unincorporated Enterprises in India: Analysis of Unit-Level Data

2021 ◽  
Vol 26 (2) ◽  
pp. 153-178
Author(s):  
Shivani Badola ◽  
Sacchidananda Mukherjee
Keyword(s):  
Small And Medium Enterprises ◽  
Tax Compliance ◽  
Information And Communications Technology ◽  
Indian States ◽  
Digital Platforms ◽  
Unit Level ◽  
Goods And Services ◽  
Level Data ◽  
Ict Adoption ◽  
Medium Enterprises

Introduction of Goods and Services Tax (GST) has resulted in harmonisation of tax compliance system in India. In the new tax regime, tax compliance system has completely moved to online (digital) platforms. Given the inequality in access to digital platform or adoption of Information and Communications Technology (ICT) among marginal, small and medium enterprises in India, tax compliance may not improve in the GST regime. In a developing country like India where majority of unincorporated enterprises are in the informal sector, staying outside the formal network may restrict their economic prospects. It is worthwhile to study the relationship between access to ICT and tax (VAT) registration among unincorporated enterprises in India. Based on unit-level data of the 73rd round NSS survey, this study explores factors influencing the decision of unincorporated enterprises to take VAT/Sales Tax registration across the Indian states. The results show that adoption of ICT in terms of using internet and computers positively influence tax registration. Policy suggestions of the study may help to expand the tax base of GST by bringing informal enterprises under the tax net.

scholarly journals Micro, Small and Medium Enterprises and Digital Platforms

2021 ◽  
Author(s):  
Fenesia Debby Irwan
Keyword(s):  
Small And Medium Enterprises ◽  
Food Products ◽  
Lower Class ◽  
Purchasing Power ◽  
Digital Platforms ◽  
Goods And Services ◽  
Medium Enterprises ◽  
The Impact

In July 2020, Indonesia experienced 0.1 percent deflation, with food, beverage, and tobacco categories accounting for 0.79 percent of the total. A continual drop in the price of goods and services over a period of time is defined as deflation. This shows a drop in the demand for food products. The impact of the Covid-19 epidemic is strongly intertwined to this. People have a tendency to be strict when it comes to limiting the number of purchases of a particular item. The inadequate purchasing power of the lower class drove the drop in spending, further suppressing the income of micro, small and medium enterprises (MSMEs). Due to the fact that, in normal circumstances, accidental purchases outnumber planned ones.

scholarly journals Analisis Dampak Tax Morale Terhadap Kepatuhan Pajak UMKM: Studi Kasus Kota Semarang

2018 ◽  
Vol 1 (1) ◽  
pp. 14
Author(s):  
Muslimah Mahmudah ◽  
Deden Dinar Iskandar
Keyword(s):  
Small And Medium Enterprises ◽  
Tax Compliance ◽  
Binary Logistic Regression ◽  
Primary Data ◽  
Binary Logistic Regression Analysis ◽  
Ethical Business ◽  
Tax Morale ◽  
Business Size ◽  
Medium Enterprises ◽  
The Impact

This study aims to analyze the impact of tax morale on Micro, Small, and Medium Enterprises (MSMEs) tax complianceSemarang City as the case study. This study uses primary data generated from 117 samples of MSMEs in Semarang. Data analysis is performed  using binary logistic regression analysis. The results showed that environmental, institutional, ethical, business, and business size variables significantly influence MSMEs tax compliance. On the other hand, variables whose effect on tax compliance is not statistically significant include happiness, religiosity, gender, age, education, and marital status.

scholarly journals Taxing Micro, Small and Medium Enterprises in Yogyakarta: Regulation and Compliance

BESTUUR ◽  
2021 ◽  
Vol 9 (1) ◽  
pp. 59
Author(s):  
Siti Rahma Novikasari ◽  
Duc Quang Ly ◽  
Kerry Gershaneck
Keyword(s):  
Tax Policy ◽  
Income Tax ◽  
Government Regulation ◽  
Small And Medium Enterprises ◽  
Tax Avoidance ◽  
Tax Compliance ◽  
Legal Compliance ◽  
The Government ◽  
Medium Enterprises ◽  
Compliance Constraints

<p>Government Regulation No. 46/2013 has not been optimal in providing legal compliance on taxation for Micro, Small, and Medium Enterprises (MSMEs), especially in Yogyakarta. This policy was evaluated and amended with Government Regulation No. 23/2018. The amendment in tax policy for MSME actors was this research background to examine: First, how does the final income tax policy impact MSME taxpayers' compliance in Yogyakarta? Second, what are the legal compliance constraints of MSME taxpayers? The method used in this research was a juridical empirical, supported with the statute and conceptual approach. The results showed that the amendment in the final income tax tariff policy from 1% to 0.5%, as well as provide legal certainty of the timeframe of taxation had a positive impact on increasing taxpayer compliance. There was an increase in the number of taxpayers to 41,000 in 2019, or an increase of 15.5% compared to the number of taxpayers in 2017. However, tariff reduction has not been the answer to taxpayer non-compliance, the Regional Office of the Directorate General of Taxes of the Special Region of Yogyakarta still found tax avoidance. Tax compliance constraints were also caused by taxpayers' distrust of the government, poor tax morale, and tax knowledge. The government needs to conduct a cooperative compliance approach in taxation policies based on trust and dialogue between taxpayers and the government to improve MSME taxpayer compliance.</p><p><strong>Keywords:</strong> Tax Compliance; Final Income Tax Regulation; Micro; Small; Medium Enterprises.</p>

scholarly journals EFFECT OF DIGITAL FINANCIAL SERVICES ON THE GROWTH OF SMES IN KENYA

2021 ◽  
Vol 2 (1) ◽  
pp. 79-94
Author(s):  
Nandwa Nelly Awinja ◽  
Olanrewaju Isola Fatoki
Keyword(s):  
Financial Services ◽  
Social Networking Sites ◽  
Small And Medium Enterprises ◽  
Online Advertising ◽  
Descriptive Analysis ◽  
Business Environment ◽  
Digital Platforms ◽  
New Business ◽  
The Government ◽  
Medium Enterprises

The digital economy is a new business environment that enables enterprises to operate and provide services via the Internet and digital platforms. The study was on the effect of economic digitisation on growth of SMEs in Nairobi CBD. The specific objectives were to determine the effect of digital financial services, digital content, digital values and skills and the effect of online advertising on the growth of small and medium enterprises. The sample size in this study was 1000 SMEs formally registered in the study area from where a sample of 300 was randomly selected. The questionnaire was employed for the purpose of data collection from which out of the 300 questionnaires distributed, 180 were returned representing a 60% response rate. Guided by the research objectives, the data collected through the questionnaire were sorted, coded and presented in graphical and tabular forms for the purpose of descriptive analysis. To determine the significance of the relationship between the dependent and independent variables, a regression analysis was carried out using the Statistical Package of Social Sciences (SPSS) version 24. The study established that digital financial services were significant factors in ensuring growth of SMEs in Kenya. The study concluded that Mobile payments have become a favorite means of making financial transactions.  The study also established that Applications available for mobile digital devices is expected to increase enormously.  Digital payment technology has increased over the last decade. From the findings, it was concluded that Consumers grow more familiar with the different payment systems available and encourage more transactions. The SMEs should explore the possibility of forming a management committee to streamline economic digitisation issues. It is recommended that the organization clearly spell out economic digitisation procedures and criteria. This can stir positive growth  among SMEs establishments and can result in effective management. The Government and the various agencies should also make provisions for training programs for SMEs  to empower them in terms of economic digitisation. The SMEs should not rely on external professionals to assist in digitisation as this may be expensive. It is also recommended that the SMEs should adopt digital financial services. E-commerce will ensure increased profitability for small and medium enterprises. They should also have Social networking sites, which have proved to be popular online activities in relation to time, spent. They should also adopt Innovation driven entrepreneurship as it contributes to increase in sales revenue, market share, efficiency, customers’ loyalty and firm profitability.

MSMEs Gain Momentum: An Insight into the Fund Allocation in the Budget over the years

2021 ◽  
Vol 12 (1) ◽  
pp. 15-22
Author(s):  
Dr. Pritha Chaturvedi ◽  
Keyword(s):  
Major Part ◽  
Small And Medium Enterprises ◽  
Goods And Services ◽  
Fund Allocation ◽  
The Government ◽  
Medium Enterprises ◽  
Insight Into

The Micro, Small and Medium enterprises (MSMEs) are the largest employers in the country after agriculture. The labor intensive sector employs approximately 114 million persons and contributes nearly 30 per cent to India’s GDP. MSME is considered as the boon for the fresh talents in India promoting economic solidity in terms of growth and export. Approximately 50 per cent of our exports come from goods and services produced and sold by the sector. Not only that the MSMEs and its contributions are directly or indirectly benefitting many other prime sectors of the country. The government acknowledging the importance of the sector grants a major part of its outlay on the same. The article is an attempt to present the analysis of the improvisation in the fund allocation for the sector in the last three budgets till the current one passed on 17th of March 2021.

Information and Communication Technology Adoption in SMEs in Sri Lanka; Current level of ICT Usage and Perceived Barriers

2021 ◽  
pp. 1040-1052
Author(s):  
Jayani Chamarika Athapaththu ◽  
Busige Nishantha
Keyword(s):  
Sri Lanka ◽  
Organizational Performance ◽  
Communication Technology ◽  
Small And Medium Enterprises ◽  
Perceived Barriers ◽  
Strategic Partner ◽  
The North ◽  
Ict Adoption ◽  
Information And Communication ◽  
Medium Enterprises

Information communication technology (ICT), considered as one of the major impacts of organizational performance and small and medium enterprises (SMEs), plays a significant role in the Sri Lankan economy as a strategic partner. Thus, the article examines current levels of ICT usage and perceived barriers to ICT adoption in SMEs in Sri Lanka. The findings revealed that despite the majority of respondents using IT for essential functions, they lacked proper internal IT infrastructures, personal motivation, had internet connection issues, trust issues, and lack of knowledge. These factors were identified as the perceived barriers to ICT adoption in SMEs in Sri Lanka. Data was collected from 67 SME owners from Sri Lanka, except the North province, in November 2016. The findings offer valuable insights to policy makers in general and to the SME owners. The methodology, implications, and suggestions are also discussed.

Innovation and Exports of Korean Firms: How Do They Differ by Size and Industry?

2019 ◽  
Vol 10 (3) ◽  
pp. 249-271
Author(s):  
Wonkyu Shin ◽  
Sehwan Oh ◽  
Sungho Rho
Keyword(s):  
Global Economy ◽  
Large Scale ◽  
Small And Medium Enterprises ◽  
Market Competition ◽  
Information And Communications Technology ◽  
Firm Level ◽  
Innovation Activities ◽  
Heterogeneous Effects ◽  
Ict Industry ◽  
Medium Enterprises

This article examines some of the distinctive characteristics of South Korean firms in relation to their research and development (R&D) and export activities affecting the efforts to retain intellectual property rights (IPR). In particular, this study shows how firms of different sizes (small and medium enterprises: SMEs vs. large-scale enterprises: LEs) tend to hold the ownership of IPR differently. To test the heterogeneous effects of the firms’ innovative capacity, this study utilizes the firm level data of 6,138 Korean firms during 2006–2014. In the years 2006–2014, South Korea concluded free trade agreements (FTAs) with numerous economies and accelerated its market competition and integration into the global economy. Our empirical results found that R&D activities of both SMEs and LEs were active during the period; however, SMEs in particular took a great stride in their patenting and innovation activities. Findings of our article also show that the more companies engaged in export activities, the more actively patents grew. Furthermore, the companies in the information and communications technology (ICT) industry are more aggressive in patenting activities.

Training for E-Commerce Success in SMEs

2011 ◽  
pp. 334-348
Author(s):  
Yanqing Duan ◽  
Roisin Mullins ◽  
David Hamblin
Keyword(s):  
Information And Communication Technologies ◽  
Business Performance ◽  
Current Knowledge ◽  
Small And Medium Enterprises ◽  
Communication Technologies ◽  
Goods And Services ◽  
Skills Shortage ◽  
Information And Communication ◽  
Set Up ◽  
Medium Enterprises

Rapid developments in Information and Communication Technologies (ICTs), such as electronic commerce (e-commerce), have revolutionized the way that business is conducted. E-commerce refers to the process of buying and selling goods and services electronically involving transactions using Internet, network, and other digital technology. It offers companies tremendous opportunities to improve their business performance in new and innovative ways. However, its huge potential benefit would only be realized by capable managers who can deal with these emerging technologies and implement them wisely. A skills shortage has been categorized as one of the challenges facing global e-commerce by Bingi and Khamalah (2000). The demand for highly knowledgeable and skilled managers and workloads places enormous pressure upon companies to improve or update their current knowledge and skills. This is particularly important in Small and Medium Enterprises (SMEs) as compared with their larger counterparts, as they are often described as “lacking the expertise needed to set up the technologies necessary, despite having a great deal to gain from doing so” (Anonymous, 1998).

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