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Budget 2017: Along with digital push, govt

also looking to widen 'Google tax' net
Although, the government has no plans to hike the current equalisation rate of 6 percent, it
could be looking at bring in more services under the tax net

FP Staff December 27, 2016 16:06:58 IST

The government may have been pushing hard its agenda by asking people to adopt to digital
transactions in the current demonetisation period, but the Centre at the same time is also
looking to bring in more such online transactions into the tax net in the upcoming union
budget.

In order to bring more multinational companies under the tax net, the government seems
to be working on plans to levy wide ranging digital transactions such as Online sales of
goods and services, downloading of software, songs, movies and books, and online
consumption of news, a report in the Business Standard has said.

"Internationally the trend is to

bring more digital transactions
into the tax net as multinational
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8/18/22, 9:37 AM Budget 2017: Along with digital push, govt also looking to widen 'Google tax' net-Business News , Firstpost

companies end up avoiding

taxes," the BS report said quoting
a government official.

As per the report, a committee set

up by CBDT had recommended
equalisation levy of 6-8 percent
on 13 broad services offered by
ecommerce companies.

Although, the government has no

Reuters
plans to hike the current
equalisation rate of 6 percent, it
could be looking at bring in more services under the tax net, the report added.

Besides this, the committee had also recommended to include other services such as
advertising on radio and television, designing, hosting or maintenance of websites, digital
space for websites, email, blogs, facility for online sale of goods or services or collecting
online payments.

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