iifl-logo-icon 1

Invest wise with Expert advice

By continuing, I accept the T&C and agree to receive communication on Whatsapp

  • Open Demat with exclusive Advice & Services
  • Get a dedicated Relationship Manager to help you grow your wealth
  • Exclusive advisory on 20+ trading & wealth-based investment options
  • One tap Investments, Automated trading & much more
  • Minimum 1 lakh margin required
sidebar image

Budget expectations: Coworking space

17 Jan 2022 , 05:04 PM

Amidst this new normal, the flexible co-working industry has become more relevant than ever and the demand for co-working spaces have surged significantly owing to its affordable pricing options and flexible work culture. Many large enterprises and corporates have also shifted their gears to the co-working space as they embraced the hybrid work model to suit their organizational requirements.

Taking into consideration the growing demand and gaining popularity of hybrid working, we have major expectation from the upcoming Union Budget that can further accelerate growth of this sector. We expect the government to enable co-working firms to claim input credits on work contract and construction services supplied, as detailed under GST provisions that can enable outflow of cash and can be spared from 18% levy, which is crucial in this pandemic time. The co-working industry also expect special packages and tax relaxations for the start-up sector as this will boost the existing and upcoming start-ups, thereby increasing demand for co-working space.

Presently, the rate of TDS applicable on coworking services is 10% as coworking companies provide renting of both movables and immovables. As the industry is going competitive, it will be good if the rate of TDS on coworking services is reduced. It will enable us to provide real estate solutions to clients at economical rates and will also help in better flow of working capital. We also hope for the extension of Investment Tax Credit (ITC) to developers as this would imply lower lease rates to tenants and benefit coworking players.

There is also need to reduce GST to the lowest slab for upcoming startups as it will make a significant impact on their budget.

Currently, coworking spaces charge a GST of 18% to all clients and this is a big impact to startups. Hence, it can be reduced drastically. Coworking firms are also hoping that input tax credit under GST be extended to developers so that it could be passed on to companies who lease out space and thereby reduce their overall costs.

The industry is also looking forward to an added infrastructural push from the Government, and a single-window clearance system that helps in faster establishment of co-working spaces to non-metro cities as well. Overall the coworking sector, which is now the new mantra for companies, is further expecting improvement in the ease of doing business.

The author of this article is Mr. Manas Mehrotra, Founder, 315Work Avenue

The views and opinions expressed are not of IIFL Securities, indiainfoline.com

Related Tags

  • 315Work Avenue
  • electric vehicles segment
  • EV segment
  • Industry leader’s expectation
  • Manas Mehrotra Founder
  • PLI schemes
  • Pre-budget quote
sidebar mobile


Read More
Knowledge Centerplus

Logo IIFL Customer Care Number
1860-267-3000 / 7039-050-000

Logo IIFL Securities Support WhatsApp Number
+91 9892691696

Download The App Now

Knowledge Centerplus

Follow us on


2024, IIFL Securities Ltd. All Rights Reserved

  • Prevent Unauthorized Transactions in your demat / trading account Update your Mobile Number/ email Id with your stock broker / Depository Participant. Receive information of your transactions directly from Exchanges on your mobile / email at the end of day and alerts on your registered mobile for all debits and other important transactions in your demat account directly from NSDL/ CDSL on the same day." - Issued in the interest of investors.
  • KYC is one time exercise while dealing in securities markets - once KYC is done through a SEBI registered intermediary (broker, DP, Mutual Fund etc.), you need not undergo the same process again when you approach another intermediary.
  • No need to issue cheques by investors while subscribing to IPO. Just write the bank account number and sign in the application form to authorise your bank to make payment in case of allotment. No worries for refund as the money remains in investor's account."

www.indiainfoline.com is part of the IIFL Group, a leading financial services player and a diversified NBFC. The site provides comprehensive and real time information on Indian corporates, sectors, financial markets and economy. On the site we feature industry and political leaders, entrepreneurs, and trend setters. The research, personal finance and market tutorial sections are widely followed by students, academia, corporates and investors among others.

  • 9 out of 10 individual traders in equity Futures and Options Segment, incurred net losses.
  • On an average, loss makers registered net trading loss close to Rs. 50,000.
  • Over and above the net trading losses incurred, loss makers expended an additional 28% of net trading losses as transaction costs.
  • Those making net trading profits, incurred between 15% to 50% of such profits as transaction cost.
Copyright © IIFL Securities Ltd. All rights Reserved.

Stock Broker SEBI Regn. No: INZ000164132, PMS SEBI Regn. No: INP000002213,IA SEBI Regn. No: INA000000623, SEBI RA Regn. No: INH000000248

We are ISO 27001:2013 Certified.

This Certificate Demonstrates That IIFL As An Organization Has Defined And Put In Place Best-Practice Information Security Processes.