LinkedIn won't pass on equalisation levy to companies. Google, Facebook are you listening?
AdvertisementLinkedIn will not pass on the equalisation levy to Indian companies advertising on its platform, becoming the first and may be the only MNC to do it.
However, Google and Facebook plan to pass on the levy to their customers.
Since, the Indian government cannot tax these multinationals directly having no establishment in the country, the burden will mostly fall on small firms and startups that rely on comparatively less expensive digital advertising.
"LinkedIn would deduct the tax from its own share of the pie, and not pass it to company that is paying for the advertisement," a person with direct knowledge of the matter told ET.
ET quoted another person saying LinkedIn is exploring ways in which a tax structure could be put in place around equalisation levy.
"The issue currently is how LinkedIn can take credit of this (equalisation levy) in the US. As it stands today , this looks to ugh as there is no clarity as to whether the levy is a direct tax or an indirect, and whether it is cove red under bilateral trea ties," the person told ET.
It is also likely that with LinkedIn’s move,
Popular on BI
- Essential food item prices spiked in the last one year
- SC to hear SEBI's review petition against RIL on Oct 12
- OPINION: Can trust-based philanthropy become the mainstream?
- PM Modi on India’s 5G launch – here are the key points from the speech
- PM Modi inaugurates India Mobile Congress, experiences 5G devices being showcased
- Tata Tiago Electric Car
- HCL Tech
- World Heart Day 2022
- Apple Tablets in Amazon Sale
- RBI Repo Rate
- Akash Ambani
- Amazon festival Sale
- Upcoming new Mobile in October
- Amazon Festival Sale
- Best Companies for Work
- India's Richest People
- RBI Interest Rate hike
- Upcoming Smartphone in 2022
- Top 10 Colleges in India
- Top 10 Airlines in World