MUMBAI: The government is exploring changes to the equalisation levy<\/a>, and may stop charging the tax on digital transactions<\/a> either partially or in its entirety for a year as it works on the options, people with direct knowledge of the matter said.

The government is doing a cost-benefit analysis and has reached out to stakeholders to figure out if it needs to suspend or shelve the 2% equalisation levy imposed this fiscal year on any purchase by an Indian or India-based entity through an overseas ecommerce platform, they said.

Many Indian
startups<\/a> and stakeholders are also pushing to shelve or reduce the 6% equalisation levy, the so-called Google tax<\/a>, charged on the advertising revenue that overseas companies such as Google, Facebook<\/a> and Netflix<\/a> generate from India. The burden of this tax eventually falls on the local startups and others who advertise on these platforms, as most digital majors pass on it to them. The government is looking at this as well.

Companies fear that all kinds of
online transactions<\/a> including hotel bookings, software purchase and even buying certain components from overseas could come under the gamut of the 2% levy introduced this year due to the way the law has been worded.

“The 2% equalisation levy in its current form is too widely worded, needs clarity and could be challenged as lacking constitutional validity as it brings thousands of transactions made online under its scope. The government needs to clearly decide what transactions it wants to tax or whether there is a need for this levy,” tax consultancy Dhruva Advisors’ chief executive, Dinesh Kanabar, said.

The government is also working on a cost-benefit analysis and exploring ways in which it can completely do away with the 6% equalisation levy, which is meant to target global digital companies that earn billions of dollars from India but do not pay any domestic tax, a person in the know of the matter said.

“For many Indian startups that work on thin margins or in boot strapped mode, paying 6% equalisation levy on top of the invoice value, when they transact with global digital companies, becomes an additional substantial cost,” said Sachin Taparia, the chairman of community social media platform LocalCircles. “At a time when all of these players are expanding their presence in India, it only makes sense to shelve the 6% equalisation levy, and instead make regulations to make sure global digital companies have Indian legal entities, invoice from here and pay GST and other taxes just like Indian companies,” he added.

Total online transactions on which 6% levy could be applicable is pegged to be around Rs 25,000 crore.

Insiders said that the government was analysing how much taxes it could collect if the global players were asked to have a base and data centres in India and invoice from their local offices. The government is also looking to introduce personal data protection Bill that would require these players to have their servers and data in India.

If these companies have an India presence, they could face both direct taxes like income tax and indirect taxes such as GST, and also on a much larger portion of their revenue. Most of them wouldn’t prefer this.

“In the past the government had created regulations whereby it had asked companies to bring data to India and create domestic entities. Whether the government takes that route or any other, more clarity around equalisation levy is essential,” said Kanabar of Dhruva Advisors.
<\/p><\/body>","next_sibling":[{"msid":76208380,"title":"Trending stocks: Reliance Industries shares up nearly 2%","entity_type":"ARTICLE","link":"\/news\/trending-stocks-reliance-industries-shares-up-nearly-2\/76208380","category_name":null,"category_name_seo":"telecomnews"}],"related_content":[{"msid":"76207757","title":"Untitled-34","entity_type":"IMAGES","seopath":"news\/economy\/policy\/google-tax-government-re-thinking-equalisation-levy\/untitled-34","category_name":"Google Tax: Government re-thinking equalisation levy","synopsis":"Companies fear that all kinds of online transactions including hotel bookings, software purchase and even buying certain components from overseas could come under the gamut of the 2% levy introduced this year due to the way the law has been worded.","thumb":"https:\/\/etimg.etb2bimg.com\/thumb\/img-size-91753\/76207757.cms?width=150&height=112","link":"\/image\/economy\/policy\/google-tax-government-re-thinking-equalisation-levy\/untitled-34\/76207757"}],"msid":76208648,"entity_type":"ARTICLE","title":"Google Tax: Government re-thinking equalisation levy","synopsis":"Insiders said that the government was analysing how much taxes it could collect if the global players were asked to have a base and data centres in India and invoice from their local offices. The government is also looking to introduce personal data protection Bill that would require these players to have their servers and data in India.","titleseo":"telecomnews\/google-tax-government-re-thinking-equalisation-levy","status":"ACTIVE","authors":[{"author_name":"Sachin Dave","author_link":"\/author\/479239123\/sachin-dave","author_image":"https:\/\/etimg.etb2bimg.com\/authorthumb\/479239123.cms?width=100&height=100","author_additional":{"thumbsize":true,"msid":479239123,"author_name":"Sachin Dave","author_seo_name":"sachin-dave","designation":"Senior Editor","agency":false}}],"analytics":{"comments":0,"views":113,"shares":0,"engagementtimems":565000,"url":"https:\/\/ettelecom.indiatimes.com\/telecomnews\/google-tax-government-re-thinking-equalisation-levy\/articleshow\/76208648.cms"},"Alttitle":{"minfo":""},"artag":"ET Bureau","artdate":"2020-06-05 10:39:31","lastupd":"2020-06-05 10:40:43","breadcrumbTags":["Internet tax","Google tax","tax on digital transactions","facebook","startups","Netflix","equalisation levy","online transactions","policy"],"secinfo":{"seolocation":"telecomnews\/google-tax-government-re-thinking-equalisation-levy"}}" data-authors="[" sachin dave"]" data-category-name="" data-category_id="" data-date="2020-06-05" data-index="article_1">

谷歌税:政府反思平衡税

内部人士说,政府是分析多少税可以收集如果全球参与者被要求有一个基础和数据中心在印度和发票从当地办事处。政府也想介绍个人数据保护法案,该法案将要求这些球员在印度有自己的服务器和数据。

萨钦戴夫
  • 更新在2020年6月5日晚10点坚持
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孟买:政府正在探索改变平衡税,可能会停止充电对数字交易征税一年的部分或全部工作选项,人们有直接了解的人士说。

政府做一个成本效益分析,已达到利益相关者想清楚是不是需要暂停或搁置2%平衡税对任何购买本财政年度印度或印度实体通过一个海外电子商务平台,他们说。

许多印度创业公司和利益相关者也推动搁置或减少6%的平衡税,所谓的谷歌税,指控谷歌等海外公司的广告收入,脸谱网网飞公司生成来自印度。这最终税收的负担落在当地创业公司和其他人在这些平台上做广告,因为大多数数码专业传递给他们。政府正在看这个。

广告
公司担心各种各样的在线交易甚至包括酒店预订、软件购买和从海外购买特定的组件可能会在今年开始征收2%的色域,由于法律的措辞。

“2%的平衡税以当前的形式太广泛的措辞,需要清晰,可以挑战缺乏宪法效力,因为它带来了成千上万的网上交易在其范围。政府需要明确交易它想什么税或决定是否有必要征收,“Dhruva顾问税务公司首席执行官Dinesh Kanabar说。

政府也在研究一个成本效益分析和探索的方法可以完全平衡税的6%,这意味着目标全球数字公司赚取数十亿美元来自印度国内税,但不支付任何一个人知道的事说。

“对许多印度公司利润率或引导的模式,平衡税为6%的发票价值,当他们与全球数字公司办理,变成了一个额外的巨大的成本,”Sachin Taparia说,主席LocalCircles社区社交媒体平台。”时,这些球员都是扩大在印度的业务,它只可以搁置平衡税6%,而使条例,以确保全球数字公司印度法律实体,从这里发票并支付销售税和其他税收,就像印度公司,”他补充道。

广告
在线交易总额的6%征税可以适用的挂钩是大约25000卢比。

内部人士说,政府是分析多少税可以收集如果全球参与者被要求有一个基础和数据中心在印度和发票从当地办事处。政府也想介绍个人数据保护法案,该法案将要求这些球员在印度有自己的服务器和数据。

如果这些公司有一个印度的存在,他们可能面临直接税收所得税和消费税等间接税,和一个更大的部分的收入。大多数人不喜欢这个。

“过去政府创建了规定,要求公司把数据到印度和创建国内实体。政府是否需要这条路线或任何其他,更为明晰平衡税是至关重要的,”说,Dhruva Kanabar顾问。

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MUMBAI: The government is exploring changes to the equalisation levy<\/a>, and may stop charging the tax on digital transactions<\/a> either partially or in its entirety for a year as it works on the options, people with direct knowledge of the matter said.

The government is doing a cost-benefit analysis and has reached out to stakeholders to figure out if it needs to suspend or shelve the 2% equalisation levy imposed this fiscal year on any purchase by an Indian or India-based entity through an overseas ecommerce platform, they said.

Many Indian
startups<\/a> and stakeholders are also pushing to shelve or reduce the 6% equalisation levy, the so-called Google tax<\/a>, charged on the advertising revenue that overseas companies such as Google, Facebook<\/a> and Netflix<\/a> generate from India. The burden of this tax eventually falls on the local startups and others who advertise on these platforms, as most digital majors pass on it to them. The government is looking at this as well.

Companies fear that all kinds of
online transactions<\/a> including hotel bookings, software purchase and even buying certain components from overseas could come under the gamut of the 2% levy introduced this year due to the way the law has been worded.

“The 2% equalisation levy in its current form is too widely worded, needs clarity and could be challenged as lacking constitutional validity as it brings thousands of transactions made online under its scope. The government needs to clearly decide what transactions it wants to tax or whether there is a need for this levy,” tax consultancy Dhruva Advisors’ chief executive, Dinesh Kanabar, said.

The government is also working on a cost-benefit analysis and exploring ways in which it can completely do away with the 6% equalisation levy, which is meant to target global digital companies that earn billions of dollars from India but do not pay any domestic tax, a person in the know of the matter said.

“For many Indian startups that work on thin margins or in boot strapped mode, paying 6% equalisation levy on top of the invoice value, when they transact with global digital companies, becomes an additional substantial cost,” said Sachin Taparia, the chairman of community social media platform LocalCircles. “At a time when all of these players are expanding their presence in India, it only makes sense to shelve the 6% equalisation levy, and instead make regulations to make sure global digital companies have Indian legal entities, invoice from here and pay GST and other taxes just like Indian companies,” he added.

Total online transactions on which 6% levy could be applicable is pegged to be around Rs 25,000 crore.

Insiders said that the government was analysing how much taxes it could collect if the global players were asked to have a base and data centres in India and invoice from their local offices. The government is also looking to introduce personal data protection Bill that would require these players to have their servers and data in India.

If these companies have an India presence, they could face both direct taxes like income tax and indirect taxes such as GST, and also on a much larger portion of their revenue. Most of them wouldn’t prefer this.

“In the past the government had created regulations whereby it had asked companies to bring data to India and create domestic entities. Whether the government takes that route or any other, more clarity around equalisation levy is essential,” said Kanabar of Dhruva Advisors.
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