Govt wants online giants like #Google, #Facebook, #Amazon to shell out more taxes
The government is ready to tax local earnings of big multinationals such as Google, Facebook and Amazon once the OECD finalises framework
New Delhi: As a first big step towards a global digital tax, the finance ministry has introduced an enabling provision that will make a foreign platform that streams, advertises, or sells goods to an Indian IP address taxable in the country, signalling that India will be ready to implement the tax once the Organisation for Economic Cooperation and Development (OECD) framework, under discussion at present, comes into effect.
Earlier, the OCED had proposed to expand government rights to tax big multinationals such as Google, Apple and Facebook doing business within their borders by releasing a methodology for such taxation. In 2016, the Centre had imposed a 6 per cent equalisation tax on digital online advertising in India. Under this, the tax is withheld by firms making payments to these digital service providers.