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Showing posts from March 20, 2016

Google Tax: What Every Indian Blogger & StartUp Should Know

Have you ever heard about the “GoogleTax” or Google, Amazon or Facebook Tax”. As per the recent Union Budget our finance minister Mr Arun Jaitley had talked about introducing a tax on an income as accrued to a foreign e-commerce company out of India.What is Google, Amazon or Facebook Tax?As per the recent announcement, a person who makes a payment to a non-resident technology company need to withhold 6% Tax on the gross amount being paid as an equalization levy (More on this with an example is given in the further section of this post).The said rule applies to a company who does not have a permanent establishment in India and only in case wherein the total payment being made exceeds Rs. 1 lakh for a particular financial year for availing certain specified services.What are the services which come under this rule?Specified services include online advertisement or any other services for using digital advertising space and this list may be expanded soon. On an e-commerce portal, there ar…