Google Tax could put a halt to India’s digitisation drive
Advertisement
Although an official announcement by the government regarding an increase in the scope of equalisation levy is yet to be made, people in the know expect it to be rolled out in the coming months.
This would mean a 6% tax levy on all online multinational companies that earn revenue from India. Equalisation levy, also being called asGoogle tax , could soon get a hold of companies like IBM, Microsoft , Amazon, Apple and Netflix, all of which provide online services in India.
India had introduced this equalisation levy on the advertising revenue of multinational web companies in June 2016, becoming the first country to tax digital transactions. Now, based on the advise of senior tax experts, the government is said to be widening the scope of this tax.
Grossed up taxes would mean that actual burden would be about 7-8% despite a 6% tax. As of now, this tax is applicable only on online advertisements, and Facebook, Google, Yahoo andLinkedIn are major payers. This additional cost is bore by customers of most of these companies, excluding LinkedIn.
A sequential and phased development of this tax could include even the downloading of apps on smartphones. "It was earlier decided that by December this year the levy would be applicable on applications (apps) bought on platforms like Google or Apple. However, due to other regulatory changes, equalisation levy was postponed for the budget," a source told ET.
(Image source: TheWealthWisher)
Advertisement
This would mean a 6% tax levy on all online multinational companies that earn revenue from India. Equalisation levy, also being called as
India had introduced this equalisation levy on the advertising revenue of multinational web companies in June 2016, becoming the first country to tax digital transactions. Now, based on the advise of senior tax experts, the government is said to be widening the scope of this tax.
Grossed up taxes would mean that actual burden would be about 7-8% despite a 6% tax. As of now, this tax is applicable only on online advertisements, and Facebook, Google, Yahoo and
A sequential and phased development of this tax could include even the downloading of apps on smartphones. "It was earlier decided that by December this year the levy would be applicable on applications (apps) bought on platforms like Google or Apple. However, due to other regulatory changes, equalisation levy was postponed for the budget," a source told ET.
Advertisement
Advertisement
- Colon cancer rates are rising in young people. If you have two symptoms you should get a colonoscopy, a GI oncologist says.
- I spent $2,000 for 7 nights in a 179-square-foot room on one of the world's largest cruise ships. Take a look inside my cabin.
- An Ambani disruption in OTT: At just ₹1 per day, you can now enjoy ad-free content on JioCinema
- SC rejects pleas seeking cross-verification of votes cast using EVMs with VVPAT
- Ultraviolette F77 Mach 2 electric sports bike launched in India starting at ₹2.99 lakh
- Deloitte projects India's FY25 GDP growth at 6.6%
- Italian PM Meloni invites PM Modi to G7 Summit Outreach Session in June
- Markets rally for 6th day running on firm Asian peers; Tech Mahindra jumps over 12%
- JNK India IPO allotment date
- JioCinema New Plans
- Realme Narzo 70 Launched
- Apple Let Loose event
- Elon Musk Apology
- RIL cash flows
- Charlie Munger
- Feedbank IPO allotment
- Tata IPO allotment
- Most generous retirement plans
- Broadcom lays off
- Cibil Score vs Cibil Report
- Birla and Bajaj in top Richest
- Nestle Sept 2023 report
- India Equity Market