India’s so-called ‘Google tax’ to be effective from June 1
New Delhi: The equalisation levy, or the ‘Google tax’, will be effective from Wednesday, as per rules notified by the Income Tax Department.
In his budget speech last month, Finance minister Arun Jaitley had announced the introduction of an equalisation levy of six per cent. It was for any payment exceeding Rs one lakh per annum from an Indian company to a non-resident for providing online advertisement services.
The so-called Google tax is primarily aimed at taxing online digital platforms like Facebook, Twitter and Alphabet Incorporated that receive crucial online advertisement revenues from the country.
- According to the notified rules, companies will have to file a statement of the specified services by June 30.
- It has also notified online forms for companies to file appeals in case of disputes.
- Google tax comes as Central Board of Direct Taxes’ (CBDT’s) effort to make the country’s tax administration paperless.