vik_c - 12:54 pm on Feb 11, 2010 (gmt 0)

Indian red tape is horrible for internet entrepreneurs. To make any foreign payments via wire transfer we have to fill out five forms, get a chartered accountant involved and spend at least $35 (apart from bank charges) to send any money abroad. It also takes two days of following up for the whole process. We have to deduct tax in some cases when making foreign exchange payments, remit the amount to the government so the politicians can siphon out money and get richer. We also pay 'reverse service tax'(on the lines of an anti-dumping duty) when we're buying services from abroad. This can't be passed on to the person/company we're buying from and raises the cost of everything by 10%. It is really time consuming. We prepay for as much as a year in some cases to avoid the repeated nuisance.