A company filed a writ petition in the Delhi High Court<\/a> seeking clarity on application of equalisation levy<\/a> or royalty<\/a> in certain software and digital transactions between tech multinationals and Indian entities. 一个公司提起写请愿书的德里高等法院寻求清晰的应用平衡税或皇室在某些软件和数字技术的跨国公司和印度实体之间的交易。
Technically, both - 10% royalty and 2% equalisation levy - could be applied on the same transaction but this could also lead to double taxation, say tax experts.
The company, Sumo Logic, filed a writ petition on Monday after the taxman refused to take a stand either way - keeping doors open for both approaches depending on the situation. Tax experts say while Indian entities would ideally wish to deduct 10% royalty and get done with it, multinationals may opt for 2% levy, as it could be less costly.
\"In this case, a non-resident ecommerce<\/a> operator had approached the tax department<\/a> for 'nil' withholding tax certificate for payments to be received from Indian customers, citing that the subscription-based service transaction is liable for equalisation levy (2%), which was rejected by the tax authorities,\" said Rahul Garg, managing partner, Asire Consulting.
\"Due to lack of clarity now, Indian payers and foreign ecommerce operators are forced to pay both taxes on the same transaction resulting in double recovery by the exchequer.\"
A nil certificate is essentially a procedure whereby a company can procure a document issued by the tax department that says that there would not be a tax deduction on a particular issue.
The tax department has sought time to respond to the writ petition filed by the company. Over the years, many companies have been paying 10% royalty and withholding tax on purchases from multinationals located outside India.
India has brought in new regulation effective April 1 whereby the 2% tax could be levied on any purchase by an Indian or India-based entity through an overseas ecommerce platform. Tax experts say lack of clarity around the levy means different companies were interpreting it in a different way.
Some companies are being cautious and paying 12% on these transactions - royalty withholding tax plus the equalisation levy.
Others are opting for either 10% or 2% tax. \"This may open a new chapter of litigation for the multinationals considering its widespread implications,\" said Garg.
Several multinationals could also look to explore this as a loophole for tax arbitrage, say insiders.
There could also be challenges around tax credits where the classification of a transaction as being liable to 10% or 2% tax is disputed by the tax authorities.
This would mean that a multinational paying tax in India may not be able to set it off against taxes paid in their home country, which normally is allowed.
<\/p><\/body>","next_sibling":[{"msid":85676061,"title":"Dell beats revenue estimates as remote work fuels demand","entity_type":"ARTICLE","link":"\/news\/dell-beats-revenue-estimates-as-remote-work-fuels-demand\/85676061","category_name":null,"category_name_seo":"telecomnews"}],"related_content":[{"msid":"85675160","title":"tax","entity_type":"IMAGES","seopath":"tech\/technology\/row-over-royalty-equalisation-levy-at-delhi-hc-doors\/tax","category_name":"Row over royalty, equalisation levy at Delhi High Court's doors","synopsis":"Illustration: Rahul Awasthi","thumb":"https:\/\/etimg.etb2bimg.com\/thumb\/img-size-1596965\/85675160.cms?width=150&height=112","link":"\/image\/tech\/technology\/row-over-royalty-equalisation-levy-at-delhi-hc-doors\/tax\/85675160"}],"msid":85676118,"entity_type":"ARTICLE","title":"Row over royalty, equalisation levy, at Delhi HC doors","synopsis":"Technically, both - 10% royalty and 2% equalisation levy - could be applied on the same transaction but this could also lead to double taxation, say tax experts.","titleseo":"telecomnews\/row-over-royalty-equalisation-levy-at-delhi-hc-doors","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":188,"shares":0,"engagementtimems":940000},"Alttitle":{"minfo":""},"artag":"ET Bureau","artdate":"2021-08-27 07:58:45","lastupd":"2021-08-27 07:59:13","breadcrumbTags":["equalisation levy","royalty","delhi high court","ecommerce","Google tax","online retail","Policy","tax department"],"secinfo":{"seolocation":"telecomnews\/row-over-royalty-equalisation-levy-at-delhi-hc-doors"}}" data-authors="[" sachin dave"]" data-category-name="" data-category_id="" data-date="2021-08-27" data-index="article_1">
从技术上讲,2% - 10%的版税和平衡税——可以应用在同一事务,但这也可能导致双重征税,税务专家说。
公司,相扑逻辑,提出令状申请周一在税务局拒绝立场无论如何——保持开放两种方法根据情况。理想情况下税务专家说,虽然印度实体将希望扣除10%的版税和完成,跨国公司可能会选择2%的税,因为它可能是成本更低。
“现在由于缺乏清晰度,印度纳税人和外国电子商务运营商都被迫支付相同的税收事务导致双大臣的复苏。”
nil证书本质上是一个过程,一个公司可以获得税务部门出具一份文件说,在一个特定的问题上不是一个税收减免。
税务部门寻求时间响应命令公司提交的请愿书。多年来,许多公司已经支付10%的版税和预扣税购买从跨国公司位于印度以外。
印度在新规定带来了有效的4月1日,2%的税可以征收任何购买印度或印度实体通过一个海外电子商务平台。税务专家说在征收缺乏透明度意味着不同的公司都以不同的方式解释它。
一些公司正在谨慎,在这些交易中支付12%——皇室预提税+平衡税。
其他人则选择10%或者2%的税。“这可能会打开一个新的章诉讼的跨国公司考虑其广泛的影响,“Garg说。
一些跨国公司也可以去探索这个作为税收套利的一个漏洞,内部人士说。
周围也可以挑战税收抵免的分类事务是容易10%或2%的税是由税务机关有争议。
这就意味着跨国纳税在印度可能无法把它与在本国税收,通常是被允许的。
读到
A company filed a writ petition in the Delhi High Court<\/a> seeking clarity on application of equalisation levy<\/a> or royalty<\/a> in certain software and digital transactions between tech multinationals and Indian entities.
Technically, both - 10% royalty and 2% equalisation levy - could be applied on the same transaction but this could also lead to double taxation, say tax experts.
The company, Sumo Logic, filed a writ petition on Monday after the taxman refused to take a stand either way - keeping doors open for both approaches depending on the situation. Tax experts say while Indian entities would ideally wish to deduct 10% royalty and get done with it, multinationals may opt for 2% levy, as it could be less costly.
\"In this case, a non-resident ecommerce<\/a> operator had approached the tax department<\/a> for 'nil' withholding tax certificate for payments to be received from Indian customers, citing that the subscription-based service transaction is liable for equalisation levy (2%), which was rejected by the tax authorities,\" said Rahul Garg, managing partner, Asire Consulting.
\"Due to lack of clarity now, Indian payers and foreign ecommerce operators are forced to pay both taxes on the same transaction resulting in double recovery by the exchequer.\"
A nil certificate is essentially a procedure whereby a company can procure a document issued by the tax department that says that there would not be a tax deduction on a particular issue.
The tax department has sought time to respond to the writ petition filed by the company. Over the years, many companies have been paying 10% royalty and withholding tax on purchases from multinationals located outside India.
India has brought in new regulation effective April 1 whereby the 2% tax could be levied on any purchase by an Indian or India-based entity through an overseas ecommerce platform. Tax experts say lack of clarity around the levy means different companies were interpreting it in a different way.
Some companies are being cautious and paying 12% on these transactions - royalty withholding tax plus the equalisation levy.
Others are opting for either 10% or 2% tax. \"This may open a new chapter of litigation for the multinationals considering its widespread implications,\" said Garg.
Several multinationals could also look to explore this as a loophole for tax arbitrage, say insiders.
There could also be challenges around tax credits where the classification of a transaction as being liable to 10% or 2% tax is disputed by the tax authorities.
This would mean that a multinational paying tax in India may not be able to set it off against taxes paid in their home country, which normally is allowed.
<\/p><\/body>","next_sibling":[{"msid":85676061,"title":"Dell beats revenue estimates as remote work fuels demand","entity_type":"ARTICLE","link":"\/news\/dell-beats-revenue-estimates-as-remote-work-fuels-demand\/85676061","category_name":null,"category_name_seo":"telecomnews"}],"related_content":[{"msid":"85675160","title":"tax","entity_type":"IMAGES","seopath":"tech\/technology\/row-over-royalty-equalisation-levy-at-delhi-hc-doors\/tax","category_name":"Row over royalty, equalisation levy at Delhi High Court's doors","synopsis":"Illustration: Rahul Awasthi","thumb":"https:\/\/etimg.etb2bimg.com\/thumb\/img-size-1596965\/85675160.cms?width=150&height=112","link":"\/image\/tech\/technology\/row-over-royalty-equalisation-levy-at-delhi-hc-doors\/tax\/85675160"}],"msid":85676118,"entity_type":"ARTICLE","title":"Row over royalty, equalisation levy, at Delhi HC doors","synopsis":"Technically, both - 10% royalty and 2% equalisation levy - could be applied on the same transaction but this could also lead to double taxation, say tax experts.","titleseo":"telecomnews\/row-over-royalty-equalisation-levy-at-delhi-hc-doors","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":188,"shares":0,"engagementtimems":940000},"Alttitle":{"minfo":""},"artag":"ET Bureau","artdate":"2021-08-27 07:58:45","lastupd":"2021-08-27 07:59:13","breadcrumbTags":["equalisation levy","royalty","delhi high court","ecommerce","Google tax","online retail","Policy","tax department"],"secinfo":{"seolocation":"telecomnews\/row-over-royalty-equalisation-levy-at-delhi-hc-doors"}}" data-news_link="//www.iser-br.com/news/row-over-royalty-equalisation-levy-at-delhi-hc-doors/85676118">
评论
现在评论 阅读评论(1)所有评论
找到这个评论进攻?
下面选择你的理由并单击submit按钮。这将提醒我们的版主采取行动