Latest Expert Exchange Queries
sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
 
 
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Service Tax | Sales Tax | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Indirect Tax | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing
 
 
 
 
Popular Search: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: ACCOUNTING STANDARD :: TDS :: TAX RATES - GOODS TAXABLE @ 4% :: due date for vat payment :: Central Excise rule to resale the machines to a new company :: VAT RATES :: form 3cd :: ACCOUNTING STANDARDS :: articles on VAT and GST in India :: list of goods taxed at 4% :: ARTICLES ON INPUT TAX CREDIT IN VAT :: VAT Audit :: empanelment :: cpt
 
 
ę News Headlines »
 Did you know? The tax exemption on your HRA
 Income Tax Department expands list of deposits, transactions under scrutiny
  Income-tax Act, 1961 read with Rule 114E of Income-tax Rules, 1962
 Master Directions on Access Criteria for Payment Systems
 RBI-Scheduled Bank's Statement of Position in India as on Friday, January 06, 2017 (Revised)
 3 Big Mistakes To Avoid This Tax Season
 The Top 5 Tax Stories Of 2017
 Are multiple service tax rates in the offing?
 All you need to know about claiming tax break on HRA
 How much income tax you should pay on investments in gold?
  Best ways to save tax in 2017

Rules for tax on online ads released
May, 31st 2016

The income tax department on Monday released rules for equalisation levy — a tax on online advertisements that would come into effect from June 1.

Announced in the Budget for 2016-17, the six per cent levy — dubbed Google tax — is aimed at foreign multinational digital companies without a permanent establishment in India. This would make companies such as Facebook , Google, Yahoo and Twitter liable to be taxed in India for earnings above Rs 1 lakh from local advertisers. According to the rules notified by the income tax department, the assessees concerned need to deduct the levy and credit the amount to the central government. They can do it by remitting it into the Reserve Bank of India, any branch of the State Bank of India or of any authorised bank.

“The equalisation levy made various players sit up and take note, especially since this is India’s first step to tax the digital economy. Now with rules in place, people need to start taking action, since the statement of specified services procured starting June 1, 2016 has to be reported in the statement to be furnished by June 30, 2017,” said Rakesh Nangia, managing partner, Nangia and Co.

The rules issued by the Central Board of Direct Taxes (CBDT) provide clarity on how an assessee can appeal against the order of the assessing officer. “By keeping the filing of statement and even the filing of appeal electronic, the CBDT has continued its motion to make India’s tax administration paperless,” Nangia added.

The Budget had proposed to impose levy on online advertisements, provision for digital advertising space or any other facility or service for the purpose of online advertisements. The levy could potentially drive up costs for advertisers in the country, with the digital companies expected to pass on the tax cost.

While Organisation for Economic Co-operation and Development (OECD) member countries had proposed indirect taxes such as value added tax and goods and services tax, India has imposed it as direct tax. The government might consider widening the scope of taxing digital transactions to include online gaming, downloading of songs, emails and blogs, and online sale of goods and services, if recommendations by a high-level panel are accepted. A committee set up by CBDT to examine taxation of e-commerce had recommended an equalisation levy of six-to-eight per cent on 13 broad ‘specified services’ with a broader objective of curbing tax avoidance by multinationals based on the OECD’s Base Erosion and Profit Shifting guidelines.

The panel had submitted the report in February.

The committee’s recommendations include levy on advertising on radio and television, designing, hosting or maintenance of websites, digital space for website, e-mails, blogs, facility for online sale of goods or services or collecting online payments.

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2017 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Software Development Software Programming Software Engineering Custom Software Development Requirement Based Software Development Software Solutions Software Serv

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions