Fundamentals of Indian Economy sessions by Rahul Bhardwaj

For a long time, foreign companies like Google, Amazon, Meta, Apple have managed to get away by paying lower corporate tax in some geographical locations by diverting their profits and royalties to other, low-tax jurisdictions, also known as “tax havens”. However, in 2016, the Government of India (GoI)decided to impose a 6% “Equalisation Levy”. This tax was levied on payments for digital ad services received by non-resident companies which do not have a permanent establishment in India, if they exceeded $1,340 a year. This tax, dubbed as Google Tax, was further expanded in the 2020 Budget through inclusion of foriegn-based e-commerce companies under its ambit.

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About Rahul Bhardwaj:

4 years of Teaching Exp in Current Affairs, Environment, Indian Economy