May 11, 2026 03:37 pm (IST)

Make this your homepage

All Finance

Big defence boost: India successfully tests advanced Agni MIRV missile | India, Singapore unite for tough action against terror and transnational crime | TVK crosses majority mark with VCK, IUML support | I bow before Bengal: PM Modi’s powerful gesture at Suvendu Adhikari’s oath goes viral | Bengal turns a new page: Suvendu Adhikari takes oath as CM amid massive NDA show of strength | Cloud over Tamil Nadu government formation as Governor asks Vijay to prove majority | 1 Year of Operation Sindoor: PM Modi says it showed India’s firm response to terror | ‘Larger conspiracy ahead of PM Modi’s visit’: BJP on killing of Suvendu Adhikari’s aide | ‘My car was on OLX for sale’: Siliguri owner says number plate used in Suvendu aide assassination may have been cloned online | ‘Pre-planned political assassination’: BJP’s Swapan Dasgupta on Suvendu aide’s killing

Equalisation levy for specific digital services comes into effect from June 1

India Blooms News Service | | May 31, 2016, at 09:34 pm

New Delhi, May 31 (IBNS) The equalisation levy, dubbed the 'google tax', introduced by the Union government in the latest Budget, comes into effect from Wednesday, June 1, according to media reports.

The tax is to be paid by Indian businesses for using international digital services.

Indian businesses, from June 1, have to deduct an equalisation levy of six percent for payments exceeding rupees one lakh in aggregate in a financial year to a non-resident service provider for specified digital services.

The areas where the levy will be applicable are online advertising, provision for digital advertising space and other services that may be notified by the government.

The 'google tax' originated during the Base Erosion and Profit Shifting Project (BEPS) discussions, a project spearheaded by the Organisation for Economic Co-operation and Development (OECD), media reported.

According to experts, the project aims to bring G20 countries on a single platform to introduce measures to ensure tax transparency and curb avoidance by multinationals through aggressive tax planning.

If the Indian entity fails to deduct the tax, it will not be allowed to consider these expenses which will increase the entity's tax expenses and liability, according to the rules.

#BEPS #OECD #Economic

Support Our Journalism

We cannot do without you.. your contribution supports unbiased journalism

IBNS is not driven by any ism- not wokeism, not racism, not skewed secularism, not hyper right-wing or left liberal ideals, nor by any hardline religious beliefs or hyper nationalism. We want to serve you good old objective news, as they are. We do not judge or preach. We let people decide for themselves. We only try to present factual and well-sourced news.

Support objective journalism for a small contribution.

India
International

Related Images

Nirmala Sitharaman presents Budget 2025 Feb 01, 2025, at 03:41 pm

Veedol signs former Indian skipper Sourav Ganguly as brand ambassador Jun 29, 2024, at 06:38 am

In Images: Glimpses from Bengali film Fatafati's premiere May 13, 2023, at 08:39 pm