Never miss a story

Get subscribed to our newsletter


×
The Indian approach on the Internet taxation has left much to be desired. Pixabay

With the Organisation of Economic Co-operation and Development (OECD) proposing an overhaul in the taxation system for digital companies, cyber experts on Thursday urged the Indian government to speed up necessary changes in domestic laws on internet taxation so that tech giants like Google, Facebook and Amazon can be asked to shell out taxes they have been evading for years.

The OECD on Wednesday published a proposal to advance international negotiations to ensure large and highly profitable multinational enterprises, including digital companies, pay tax wherever they have significant consumer-facing activities and generate their profits.


According to cyber experts, given the fact that India is not yet a part of OECD, it is imperative that India must be mindful of the way how things are evolving.

“The Indian approach on the Internet taxation has left much to be desired. India has not yet crystal clearly defined its holistic national approach and perspectives on taxation on the Internet,” Pavan Duggal, the country’s leading cyber law expert and privacy advocate, told IANS.


The OECD on Wednesday published a proposal to advance international negotiations to ensure large and highly profitable multinational enterprises, including digital companies. Pixabay

However, it is essential that India is mindful of the global developments that are taking place in this regard and must come up with its own taxation approaches, which are in sync with the global trends that are emerging.

“Further, India needs to distinctly be walking in the path of ensuring that legal entities who are offering their services via the internet in India, whether they are physically present in India or not, would be subject to Indian taxation,” Duggal elaborated.

The new OECD proposal is based on the work of the OECD/G20 Inclusive Framework on base erosion and profit shifting (BEPS), which groups 134 countries and jurisdictions on an equal footing, for multilateral negotiation of international tax rules, making them fit for purpose for the global economy of the 21st century.

“We’re making real progress to address the tax challenges arising from digitalisation of the economy, and to continue advancing toward a consensus-based solution to overhaul the rules-based international tax system by 2020,” said OECD Secretary-General Angel Gurria.

Also Read- Adding Tomatoes in your Daily Diet could Keep your Virility Up and Running

According to advocate Virag Gupta, in the K.N. Govindacharya petition before Delhi High Court in 2012, taxation of Internet companies was first raised when the government of India gave “Double Tax Avoidance Agreement: as reason to not tax foreign Internet companies.

The OECD proposal “may strengthen the case for taxation where these companies are having huge business or presence. But how can tax haven countries can be compelled to follow the OECD guidelines?” Gupta told IANS.

Countries like China, France and Germany have shown political will-power to tax Internet companies but India has miserably failed to tax Internet giants despite being the biggest market.

“India’s Parliament is supreme and sovereign to tax these companies for which necessary amendments are to be made in the Income Tax Act, Companies Act and Information Technology (IT) Act etc,” he suggested.


According to cyber experts, given the fact that India is not yet a part of OECD, it is imperative that India must be mindful of the way how things are evolving. Pixabay

According to him, India was always free to tax these companies.

“In this current economic slowdown, OECD decision may enable government to bring new tax regime by which digital companies may be taxed,” Gupta added.

At the moment, the said OECD “Public Consultation Document” is only indicative of the consultation process wherein stakeholders have been asked to give their comments by November 12, 2019.

However, the approach could form the basis for subsequent evolution of jurisprudence concerning taxation in the context of the Internet.

Also Read- UNICEF Accepting Donations in Cryptocurrencies Ether and Bitcoin

“The fact remains is that today, most of the companies offering services on the Internet are not paying their share of taxation in different jurisdiction. This is despite them taking the benefit and advantage of the markets of the said jurisdictions,” informed Duggal.

“Further, India needs to distinctly be walking in the path of ensuring that legal entities who are offering their services via the internet in India, whether they are physically present in India or not, would be subject to Indian taxation,” added Duggal, who is also a senior Supreme Court advocate.

There are immense amount of challenges in this regard.

New changes would be required in the existing Income Tax laws but more significantly as a nation, “we need to make up our mind as to in what manner, we want to contribute to the evolving taxation jurisprudence on the Internet”, Duggal emphasized.

“The top 15 Internet companies alone have amassed a value of over Rs 20 lakh crore due to their Indian users. The companies’ value could be a major chunk of the Indian economy but is serving no purpose to Indians,” informed Gupta. (IANS)


Popular

Photo found on Google Images

Savitribai Khanolkar, the designer of Param Vir Chakra

Eve Yvonne Maday de Maros, the woman who designed the Param Vir Chakra, was born in 1913 in Neuchatel, Switzerland. It was believed that she came to India to understand the country's culture and tradition.

She got to know about India's spiritual and cultural wealth at a very early age through holistic education which she received. Soon, Eve Yvonne fell in love with a Maharashtrian named Vikram Khanolkar, who was a young army officer, and was undergoing training at the Royal Military Academy in the United Kingdom.

Keep Reading Show less
Photo by Adam Winger on Unsplash

The whole salon environment at home believes that services at home are undoubtedly the best option during the unusual crisis.

In this world full of technological advancement where everything is now home-delivered, even the most essential beauty services are now available at your doorstep? Let the pampering sessions begin. The whole salon environment at home believes that services at home are undoubtedly the best option during the unusual crisis.

IANSlife brings you the co-founder of YES MADAM, Mayank Arya who speaks of the benefits of at-home salon services.

Comfort
We all prefer comfort over anything and everything. Nothing is more comfortable than getting everything under your own roof. One of the most amazing perks of subscribing to an at-home salon service provider is that you can watch your favourite TV show or OTT series while having your hair treated or nails done. Amidst, Covid-19 and working from home some of the beauty services can be taken simultaneously. Getting beauty services at your home keeps you relaxed and calm. During festivals when you are already busy the on-demand salon services can do wonders for your mind, body and soul.

woman lying on sofa Nothing is more comfortable than getting everything under your own roof. | Photo by Inside Weather on Unsplash

Keep Reading Show less
Photo by Helena Lopes on Unsplash

India has been ranked 139 out of 149 countries in the list of UN World Happiness Report 2021.

By Aishwarya Jain

According to the World Happiness Report 2021 which was released by the UN Sustainable Development Solutions Network, Finland was once again crowned as the world's happiest country. India has been ranked 139 out of 149 countries in the list of UN World Happiness Report 2021. To make society happy, firstly it is really important to spread awareness on how it is okay to relax, chill and take a break. People tend to normalise overworking, which is so wrong. Of Course, we need a job to live and sustain ourselves but you shouldn't be working yourself to death, and the fact that this is seen as normal is really worrying. You spend more hours at work than you do awake at home, so if those hours are drenched in misery then sadness basically becomes the norm. A study from Gallup (2017) found that happier employees were more engaged, which resulted in improved customer relationships, and a 20 percent increase in sales.

Also, lowering down the crime level would act as a major factor towards a happy society. People who witness crimes, or come across evidence of a crime in their local area, can suffer anxiety and may feel demoralised or powerless. We should also teach them to stop judging people by materialistic things and accept everyone with all their flaws. Media plays an important role in making society happy because they have the power of reaching out to billions of people and helping them out through a solution-based approach.

woman in black shirt smiling beside woman in black shirt Media plays an important role in making society happy because they have the power of reaching out to billions of people and helping them out through a solution-based approach. | Photo by Dave Goudreau on Unsplash

Keep reading... Show less